I am concerned about the falling price of Steem tokens. Steem has dropped to $1.11 as of this post! Steem dollars are made up of Steem tokens, in this way SD are able to hold their value near 1 USD. So if 1 Steem token were to drop to $ .50 for instance, it would then take 2 Steem tokens to make up a Steem Dollar. If they drop to $ .25 then it will be 4 per SD, you get the picture.
There are 21 times more of Steem tokens than Steem Dollars. This means that Steem could fall to a price of under $ .05 and still be enough to peg the SD to the USD. The more tokens needed, the less each Steem token is worth. This affects the value of our posts considerably!
Remember it's called "Steem Power," not Steem Dollar power.
The solution?
We all need to hold our Steem. We need to create a demand that is bigger than the supply, in other words we want to make it very difficult to purchase Steem. We hold Steem, sell our Steem Dollars and buy it up while it's cheap and stockpile it!
When there is hardly any available, that isn't being held by us, the price will rise. Simple supply and demand. There are lots of day traders out there, all we have to do is keep them hungry. Steem has been 80-90% pre-mined and then given to Steemit. The Steem blockchain then awards the Steem using an algorithm to determine who gets what, by way of upvotes. The other 10-20% is being mined and so new Steem will still come onto the market, but very little.
I just checked Bittrex, there's only 95,944.884 STEEM for sale, but there is bids totaling 12,476,670.071 STEEM. So there is a huge demand and very few Steem. The 24 hour volume on Bittrex for Steem was $40,226.21 or 69.59 BTC. As this was obviously "Whale Dumping", we all need to be scooping these tokens up to hold! Let's keep them dying for Steem, HODL
What is mind boggling is that if you had joined Steemit early, just a little over two months ago, your wallet reward was 10,000 Steem , worth approximately $3 at that time! What do you guys think?