Why is the price of steem not increasing?
We can lament it and blame the problems of the steem ecosystem. When we consider the value of steem in fiat money we should however look at it differently. Whereas most other cryptocurrencies undergo price variations because of speculative reasons, steem is much more than that. Steem creates value that allows people to make an income.
Which other blockchain allows people to make an income?
Probably there are other blockchains that allow people to make an income. On steem however the income possibilities are manifold. Let's take some examples:
Living in Malaysia and having an income from steem
There is this woman @fitinfun that I've been following for a certain time. She lives in Malaysia and manages to survive thanks to her blogs that she runs on steem. She knows a lot of tricks to get free uvpotes that can help many minnows.
Emigrating to Brasil thanks to the income from Splinterlands
There is my friend @hendersonp who has become a splinterlands specialist. He takes part in tournaments and has several accounts with which he collects DEC and free cards. He lives in Venezuela and thanks to the income from steem and splinterlands, he will be able to emigrate to Brasil to escape the catastrophic situation in his home country.
Renting out Splinterland cards and earning an income
There are people that I don't know personally like @smalp or @jarvie that are investing in Splinterland cards and are renting them out to other people using the services of peakmonsters.
There are probably many other people who manage to earn an income on steem. Like all the code magicians that build apps on steem. Maybe there are even people who have a full time income from this platform?
You can't buy food with steem
All the people who make an income on steem probably need this money for basic needs like rent or food. Since it is not (yet) possible to pay for such things in steem, the coins need to be exchanged into fiat currencies. This leads to a permanent sales pressure which prevents steem prices to explode.
In my opinion steem is not a „normal“ cryptocurrency subject to price changes because of speculative reasons. Steem is an ecosysteme where users are able to produce added value and to earn an income. I believe that the price of steem develops according to the needs of the community.
How to make the price of steem increase ?
Beeing aware that there is a constant sales pressure on steem, we should put a lot of efforts to increase the demand of it. With the new hard fork on the horizon that will give curators a bigger part of the pie, we go into this direction, because people staking steem will have a bigger reward.
We should also make sure that new people come on board and start to enjoy this platform. We should try to take new users by the hand and show them around. Maybe we can even delegate them some SP or RC to allow them to post freely and have a nice first experience. I would like to point out the amazing efforts that some users make to get new users like @jongolson who put together a steem online course for new users on https://steemsavvy.com/.
What is most important however is that each of us stakes a big part of the income we generate here. The more steem is staked, the less is exchanged into fiat currencies and the more stable the prices will be.
I believe that we as a community have a big impact on where the price of steem will be in the future. It's up to us to share our enthousiasme for this platform and invite new users.
Together we will make steem great!
My projects:
@help.venezuela : a program that supports steem users from Venezuela.
HVOTE : A token that is underlined with a real steem account. With the sales of tokens, the Steem Power of the account is increased. The votes are sold on smartsteem and together with curation rewards, the account produces real economical value. Big token holders get upvotes from the account.
Ref-Hunters : Cryptocurrency faucets. Get free coins every hour.
Thank you for the shout out, @achim03. I am able to survive in this situation with a lot of hard and consistent effort and a very low cost of living. As you say, the price is discouraging when it does not rise with the others, but surely does drop hard with them.
However, I am always bullish on STEEM and do my same effort no matter what the price.
I have been doing this for two years now and focus on contests, dApps that pay with upvotes and other methods STEEM has to make good rewards here. I write minnow tips you can find listed on the bottom of most of my posts. I believe we cannot survive without people blogging here and those people mostly have to start out with low sp and few resources to succeed, so I try to help as I can.
It has been a great two years, and here's to many more :)
Hi @fitinfun,
Thank you very much for stopping by and for your comment. I admire how much effort and hard work you put into this. I realised that even advanced users can learn something from your posts intended to help minnows.
Continue the good work for more years to come ;-)
Steem is more liquid compared to other cryptos, steem is used by ordinary blockchain users who literally earn from the work/post he or she created on the blockchain.
In other cryptos, whales are just speculating on the price.
Posted using Partiko iOS
Hi @guruvaj,
Thank you for your comment. I also see it like that and I think that in the long term it is more sustainable.
I run Smalp. It's all about the use cases and sinks now.
Hi @aggroed,
Thanks a lot for stoppying by and your comment. Good to know that you run Smalp. I might rent some cards ;-)
I am happy the the price is mostly stable because those the need to earn enough to live can. I personally power up as often as I can. Small long term investment.
Posted using Partiko Android
I quite agree with you. I also prefer to have stable prices. I haven't powered down yet and am using my steem to power up or to buy steemmonster cards ;-)
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STOPAnswer is simple:
we've growing supply and demand is in decline and there are very few ways (if any) to burn tokens and get something valuable in return (that would lower supply).
Cheers
Piotr
Hello, I came here because of the suggestion by @edgare1
I was happy to find out that we have a mutual admiration for @fitinfun. But I didn't know the back story behind her. Thanks for sharing.
In essence, I do agree with your interpretation. The supply and demand directly affect the volatility. But in my opinion, it is important to note that only if we have enough Steem that is being traded, we can expect any increase in the number of total users, because the price of Steem affects the perception of the investor, which in turn affects the usage.
You've got a new follower, thanks to one of your loyal readers.
Much cheers.
Hi @reverseacid,
Thanks a lot for stoping by and for your comment.
I believe that you are right that the success of steem is closely linked to the price of the currency. The energy and investment on this blockchain will always be in relation with the profit that can be generated.
Thanks for following and a big thanks to @edgarare1 for the shootout!
Best regards
Achim