A Simple Illustration of a Bull Market - The Core of Steemit
Too often have I read postings that put Steemit in this 'zero sum' scenario. Wherein one loses and another wins. True, we are competing for limited attention in a timeframe of ~30 days, wherein our posts can earn 'votes' and payouts. But the actual core of the system is different from that. Depending on your actions and investments, everyone can win. Even when your blogs are not trending, guess what? Others are. Their trending value will increase the value of the Steemit currency. A currency which you can hold in your wallet, thereby joining in on their successful postings by proxy.
There's Stages to the Ecosystem
One of the more interesting things I've notieced while curating and browsing is the trends that seem to form. It's almost as if the content on the frontpage is a 'market' on its own. At first, there were lots of travel and living blogs ruling the system. Curators and creators alike were doing bigger payouts and volumes of 'travel and tits' as it's been lovingly called. But then the payout vanished. Was it because the market was saturated? Was it because big investors were sick of it? We don't know for sure what to attribute it to most, but we do know that the graph below is relevant.
Just this morning, I saw a few of them (travel and tits) pop out the woodworks again, with some decent votes and comments backing them. Looks like we hit the bottom of our "travel and tits" market crash and are going to slowly adjust to the mean now.
The STEEM Currency Market is Similar
Investors flocked to the currency as it exploded and went higher, and we bottomed out shortly afterwards, with a very respectable $400,000,000 USD market cap. The current sentiment on the STEEM currency market looks and feels similar to that of 'tits and travel' on the blogging market. We've bottomed out for the time being, but STEEM and tits will always sell.
I hope that you are right and that Steem will recover soon.
It will, the network and the potential never changed. This is just how markets are in nature.
Hi, funny and true post (hopefully). I wrote a post about the price of STEEM yesterday, you might want to check it out. :)
I had a look and gave you a follow, good work :)
Wow thanks :O
Do you think Steem marketcap has bottomed or Steem currency? I don't think the level of investment in Steem power is keeping up with the inflation and price will continue to drop. Or am I missing something?
The current investment mirrors a base of 'only' 50k-60k users.
In the very long term I'll agree, we're in an inflationary system that will eventually find a mean that may well be below the current value. At that point, all current investors will have tenfold their holdings, though.
It's all relative, but I do think the limit for growth is not even close to in sight yet.