Now for the past one week ,I have been trying to systematically analyse this platform.it was very interesting to note at first ,that post one year of it's public existence, it is still quite young as far as subscription is concerned.
If we were to draw an analytical chart of the rising graph of social media platforms and the crypto ecosystems, we would infer that for the first two years of it's inception, a platform is generally testing waters. The graph is usually volatile with sporadic spikes.
From the third year onwards, if a platform survives the initial tests, the graph starts to pick up. Now sites like facebook and currencies like Bitcoin were based on lucid ideas which challenged the acceptability by the masses as the concept were new but interesting.
Once the initial phase is driven through and more jump on to the bandwagon, the graph displays an exponential growth for a finite number of years before settling down into a steady growth level.
Steemit is now in the initial testing water phase where people are still getting to grips with the idea itself. As the idea would start doing the rounds within the domain of the internet , the bandwagon shall see a drastic surge. Economics would tell us that the utility of steem is deemed to bound to increase manifolds. Resultant supply would also have to increase .
Now comes the catch..... If only the supply increases then inflation would set in wiping off the value of steem, leaving only steam power as a viable investment option. To increase the valuation , the market cap has to increase as a result of enhanced demand. To generate demand I go back to my analogy of Facebook and Bitcoin. What happened there between the third to the eighth year of inception was creation of FRENZY. Whether or not steemit is going to create that frenzy within the span of the next five years is hard to tell but what is certain is the concept of block chain based social media which is paying for content generation is surely and definitely going to be a massive hit.
So common Sense tells us to stick around and accumulate as much as steem and SP we can for the next one or two years because the frenzy if created shall take the valuation sky rocketing.