STEEM: Who Cares About The Price And The Wealth Effect
Do you know what the wealth effect is?
This is a tactic used by Central Bankers to try and get people to spend money which stimulates the economy. Basically, the bank pumps money into the economy believing that it will lift the price of certain asset classes making people feel "wealthier". When people feel wealthy, they go out and spend money. This is one of the ways the banksters "manage" the economy.
Notice how it says people "feel" wealthier. Like most things involving banksters, things are not as they appear. While certain assets do inflate, unless one cashes out, the wealth is really an illusion. This situation gets even worse when you look at the housing situation a decade ago. There, we had people not only lose the wealth in their homes when prices collapsed but they were saddled with debt since they took the money out in the form of loans.
While this is another shady practice by the banksters, it does have sound psychological reasoning behind it. People do tend to feel better when their asset values are going up. On here, we witnessed the same thing over the last couple months. Think back to October and $.85 STEEM. What was the atmosphere like? Very negative. Contrast that with $4.00 STEEM.
Of course, what really changed?
The answer, when it comes to your investment in STEEM, is nothing changed. Today, we had a collapse of all cryptocurrencies. People are full of fear now. The renowned Peter Schiff called for Bitcoin to go to zero. Surely this crypto bubble is done. It Bitcoin is getting killed, surely alt-coins are severely cooked.
Relax people. NOTHING CHANGED. The developers on the steem blockchain are doing the same thing today as they were 48 hours ago. The traffic on this site is increasing. We are seeing record transactions hold up (averaging over a million a day). Yet people are making like this is the end of the world.
I want you to think back to Sunday. There was an alexa rating posted which saw Steemit.com break into the top 1000 in the US.
Wow. It is up 189 places or 18.9% in 5 days. Does this sound like a blockchain that is having issues?
Now let's look at another one. This came from a post by 
Another wow. That active users are approaching 40,000. So we are seeing the growth in the participation rate. It also appears that the daily author rate is up to 20,000.
For full post:
https://steemit.com/statistics/@arcange/steemit-statistics-20171221-en
So put your mind at ease. Nothing bad is happening to either STEEM, the currency or the blockchain itself.
Let us create a bit of "wealth" effect ourselves. I want you to take a look in your account at your SP and multiply that by 100. Write it on a sticky note and put it up somewhere that you can see it. This is what your account will be when STEEM hits $100. And it will happen. No market heads up in a straight line.
The truth is the cryptocurrency market cap went from $250B on Thanksgiving to $625B two days ago. That is a huge run up in under a month. Profit taking was going to happen. Of course, this caused a panic which led many to jump on board. Remember, the new entrants are Wall Street people and they panic when something is down 5%-10%. This is a new experience to them. They are not acclimated to the huge swings in cryptocurrency.
And Wall Street being what it is, when the fear takes over, things move down hard and fast.
At the end of the day, STEEM at $.85? Who cares? $1.25? Who cares? $4.00? Again, who cares?
Unless you are a trader and looking either to swing trade or scalp, the price of STEEM means nothing to you. Every minnow and dolphin should have one goal: to power up as much as humanly possible. Every SP that is added to your account will be worth a lot more a year from now.
The blockchain guarantees it.
HODL firm and reap big profits.
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