Massive power-downs versus less investment. Perhaps the reason why the price of Steem could further take a hit in the coming weeks and why it's a win-win situation.

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So I'm sure you've realized the price of Steem hasn't been too good and on the decline for about a good month now ever since it hit over 4 dollars. That was an exciting time and it grabbed the attention of many new investors both in time and money. New investors realized, "wow Steem is on the rise and possibly could go in further" and joined the train. They realized they could make money blogging and curating and a lot of people actually did. Most initially cashed out to test it out and that money probably never came back in but during that time the price was still ok and there was further investment.

I checked out steemwhales.com just this morning and realized how much only the top 50 users are powering down within the next 10 days only. I added them together and it came up to about $985,480, with Hive account@steemit withdrawing about $745,616, a good chunk. I don't know if that's the official account of Steemit but if that is, it probably makes sense as they'll probably need all that money for further development given the fact that Steemit is beta and in development. 

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Either way, this will take a hit on the price of Steem. These are only the top 50 users and we're already at close to a million dollars. If you put together the power downs of every user on Steemit, I'm sure it'll significantly further push the price down. With all the excitement surrounding Steemit, new users are joining day in day out to test it out and see if they could also make some money out of it. That's how Steem is advertised anyway. Some users are reinvesting it back into Steem power and others are instantly cashing out. Check the wallet of new users who earned a lot of money and you'll see what I'm talking about. Steem power is supposed to ensure the stability and long term health of Steem/Steemit. With all these power downs, it's hard to imaging the price going up. 

The price going down also means, less confidence by further Steem power holders and discourages users from locking their earnings in Steem power and committing to the network, rather encouraging them to cash out to get the most as they anticipate further decline. This further takes a toll on the price.

There's an upside though. A lower price of Steem means, people can now power up for cheap. The more the price goes down the more people can now buy more tokens they wish they had, to power up, so this will be seen as an opportunity. But then also, because of the history of intermittent stability and continuous price decline, users may hold off on powering up, still buy Steem and cash out when the price of Steem goes up. Which will further draw down the price. 

There's more than enough reasons to hold Steem power, if we could further add more reasons to that, that will be great. With all these choices by users going on, whether the price of Steem goes down, stabilizes or goes up, is all a matter of time. We will have to wait and see.