Many people have asked me lately what I think of the Price of SBD and STEEM going down and I have been asked that many times I though it a perfect question to detail in a post.
The entire crypto market has been seeing difficult times and STEEM and SBD are not escaping. I’m not too worried about this because my goals are longer term so the current price means nothing to me.
For Steemit I think the lower prices are a good thing. After going through a period of high prices and for some, very high post payout values, this has attracted many ‘get rich quick’ type people, more plagrisim, more spam. These lower prices mean lower vote value and lower payouts. If Steemit becomes less attractive my hope is that many of these will leave for more lucrative pastures.
For a long time, the price of SBD has been higher than USD$1 and many people, including me, were enjoying the ability to use this as liquid funds for other things than SP. There are many of us here on Steemit that have enjoyed this and also have a long-term vision. But the high SBD price also encouraged a growth in short term thinking and the use of steemit as a cash cow. I hope the lower price of SBD will either help change the mindset of these people or weed them out.
If you are concerned about the price of STEEM and SBD then the best thing you can do is Hodl. The more that people hold, the less the supply. If supply can not meet demand, then the price will go up. Well that’s the theory anyway.
Taking the lower prices as a good thing for Steemit and those with a long-term vision, now while prices are low is the best time to be active on steemit. Its shows commitment, loyalty and dedication. And if we weed out some of the crap, then there are more vests in the rewards pool for those working hard.
I believe a low price of STEEM will create a better platform for content discovery. Would you agree or disagree? Please do comment below and let me know your thoughts on this.
Then there is the technical side of SBD and its role in Steemit. Although I have read a lot about it, it still confuses me a little. So, to try keep it simple, the market has dictated the price of SBD but the blochchain code includes mechanisms that helps peg SBD to US$1. It also has mechanisms to reduce the debt ratio because too much SBD in circulation is not good for the price of STEEM as it makes STEEM less attractive for investors. Taking this into consideration, my feeling is the best thing to do with SBD at the moment is hold on it to for use it to buy STEEM and Power up.
I am a keen believer that Steemit needs more long-term thinkers. We are still in beta and the STEEM blockchain needs time to flourish and the ecosystem grow.
I said it before and I will say it again, the accounts that will keep my support on Steemit are the accounts that show long term promise, not those that want to use it as a cash cow. And I am not the only one that feels this way. I am aware of many others with much higher SP than me that stop supporting accounts that don’t have long term vision and I know others that wont even begin to support accounts till long term vision has been proven.
STEEM ON
xx
Paula
A shameless plug now @abh12345 and myself run the witness @steemcommunity – please do consider us for a vote
