Why the high price of STEEM will hurt Steemit in the long term
Right now, the biggest holders of STEEM and STEEM power are people that happened to be around early and have very little actual money invested in STEEM. While this isn't intrinsically bad, it means new users coming to steemit have very little ability to have an impact without investing thousands of dollars. Ask yourself objectively if this site is really worth THOUSANDS of actual dollars to you.
Ask yourself if you had had to pay, out of your own pocket, the dollar value that you see in your account. If you would feel the same about what is happening here. This thing is currently valued at more than $1000/user. There is no revenue except selling the crypto, and there is nothing holding the value except new suckers putting money in that don't understand the terrible inflation underlying it.
Please be careful everyone.
It is worth 10 dollars per user not more.
The price is bubble made by traders. Lets watch how long it holds. It is what its happen when traders trade with purpose to speculate and make money... Also, to buy and invest in steemit is very very high risk but high return investment. Any second there are hackers who works with out sleep to find a hole. Etherium is a great example of hacking power to influence the price :D
Thanks for raising this. I think it's important we understand this. What is the value of steem? Facebook paid $1B for less than 100 million users. [1] Was that its value? Yes, because somebody paid for it. Thanks to trading markets, steem value should converge asymptotically to its actual value.
Granted the users with most steem power will heavily influence the curation, but this should evolve as more users use the application. Also, early steem adopters are very crypto-world oriented and they will heavily influence that, but what about more niche topics? Maybe I'm too optimistic but I think it will eventually converge to something interesting, useful and trustworthy.
[1] https://www.quora.com/How-many-users-does-Instagram-have