RE: Everyone seems to be making money, can Steemit survive long term?
I think that in the long term a lot more people will invest in STEEM, they just don't know how or why or that it will be stable, yet. But over the next year or so people will start to see the benefits of investing.
And the way things are going right now STEEM and other coins could hold each other up without Fiat or Bitcoin. For example, Compuceeds is now traded on OpenLedger. There are people with Tens of Thousands and Hundreds of Thousands of Euro in Compuceeds. Once they all get on OpenLedger and start trading, some of them will turn their Bitcoins in to STEEM and then put that in STEEM Power. And if just 2 people put in $10,000 each, or 4 people put in $10,000 each, or 10 people put in $10,000 each, the price of STEEM would go up dramatically. And all the STEEM they put in to STEEM Power will be locked away not being traded.
So STEEM doesn't even have to be held up on Fiat or Bitcoin. As all the new STEEM and Steemit based platforms come out, they will all support each others economies back and forth outside of Bitcoin and Fiat.
Hmm - interesting point there (and thank you for taking the time to write it). What still concerns me is that it seems for every 1 person that is willing to invest say $10,000 into STEEM (or SP) there are 10 people who are going to pull out $10,000 via posts/comments/curation. Perhaps additional steemit based platforms will help dilute this and additional investors will see the value in buying STEEM but until something dramatically changes I still question the current model.
I read an article recently that said this new user to Steemit was one of the top 5 biggest investors into STEEM with $100,000 recently put into SP. If that's one of the largest investors with $100k and easily $100k is pulled out of this site daily (if not more then that) - then I still feel like there needs to be more people buying/investing. Who knows, I could be wrong but again thanks for the contribution!
Ok, so you are saying that every day or 2 maybe 2 or 3 people get $10,000 in STEEM Dollars that they can actually pull out that day, and over a few weeks or months many of them will. And that is both true, and necessary.
If STEEM could not stand up to people selling out it wouldn't last, but if you got to Bittrex for example, the Buy Wall is pretty thick. You could take 100 Bitcoins worth of STEEM (about $60,000) and cash it all out at once (losing money by not selling it slowly at higher prices) and you would only knock down the Buy wall about 3 pages and down about $1. If you were to take that same 100 Bitcoins and spend it on the Buy wall, it would send the price up by 5-7 pages, nearly Doubling the price.
There is a lot of talk on STEEM about Whales, but we have not even begun to see the effects of a single Whale. Whales make waves, that is why they are called Whales. What a Whale does is goes in to the market, drops $1,000-$100,000+ in the Market, jacking up the price. Then wait a few minutes, and sell about 1/6-1/4 of it for a huge loss, knocking the price down lower than it was before they came in. Then they use the money they got for selling all that STEEM (though at a loss) and use it to buy STEEM for even more than they paid before (again at a loss). Then they put all their STEEM they have for sale at different intervals ($6, $6.05, $6.10, $6.15, $6.20, etc) below the lowest Sell prices (of those that are left), then set up a buy wall with 1 or more Bitcoin, so that they buy price is locked in at the new higher Price.
There are now about 100 people with that capability here on this Website. And some of them might not even realize that they can do it. But STEEM is about to see some major Whale activity over the next year.
well, you know that the price of steem could just fall to something like 10 cents. I think the price was something like 30 cents before the bullrun. The payouts would be lower so the money being pulled out and money being put into the system would be somewhat at balance.
I just did.