I've seen a lot of posts recently about projecting Steem to $100, but is that even possible? I try to explore how realistic that claim could be.
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In order for Steem to hit $100 it would have around a $30 billion dollar market cap. Currently that would place it above Litecoin and Cardano and about $10 billion below BitcoinCash. Close to 20 times the value right now.
Has Steem had a jump in value like that before?
Last year at this time, Steem was sitting at $0.17 cents. Now it is almost $6. That is about 35 times the original price. So a rise to $100 doesn't seem to out of the question. During the same time, the entire crypto market cap was around $20 billion and is now over $700 billion.
If we see growth even remotely similar to last year then it is reasonable to think that Steem could rise to $100. But that would mean that the crypto market would need another incredible year and finish next year around $14 trillion and I'm not sure that is possible.
So in order for Steem to see similar growth it is reasonable to think that we'll have to see a lot of other coins fail in 2018. Everything went up in 2017 and if we expect similar growth for Steem, it means that some coins won't see the same kind of growth. Some will need to fail.
2018 is really a show and prove year. Projects will need to start showing that they have what it takes to build a needed blockchain technology and prove they are getting it done.
Steemit doesn't need to prove anything. It is built, it works and it is growing. For that reason, we don't have to worry about project deadlines like other coins. For example Reddcoin. If they don't have integration into some social media platforms by the end of the year, they won't be able to hold the value they are enjoying now.
In that light, Steem is a safe bet in a world of volatility. Most of the Steem tokens are locked up in Steem Power and that really lowers the liquidity of the coin and that should make it more valuable over time as well.
But the real question is, will the markets keep going up? Right now we are in a little bear run, but we are still at the start of this crypto revolution and have a long way to go. I expect the markets to keep going up, but I don't think everything will go up for the reasons mentioned above. I think the good and useful coins and projects will continue to grow at an incredible pace, but the ones that don't show and prove will lose quickly.
So will Steem it $100 by the end of the year? I honestly don't think so. I think if we could see $50 Steem by the end of the year we should be doing backflips. In the long run, who knows what is possible, but I $100 Steem isn't out of the question.
Remember I'm no financial advisor. I'm just a guy telling you what I think.
Let me know what you think. Will Steem get to $100 by the end of the year?
Let me know your thoughts in the comments below.
