I think a lot of people will wake up rather surprised this morning when they go and check the price of STEEM. It has doubled overnight.
I have 40.000 Steempower that I earned with writing, curating, commenting and investing my own money that is now worth 10.000 dollars. WOW!
Me while writing this.
These huge price rises always make me a bit weary and I do feel the need to sell a bit and take some profit. Not just with Steem but with any other Crypto too.
But with Steempower this is not (instantly) possible. It’s locked up in the platform and it takes a week to convert 1/13 of the Steempower to STEEM. This is called a powerdown. (it takes a total of 13 weeks to convert all your Steempower to STEEM).
Info for new users:
STEEM is the token you can buy and sell on exchanges. Steempower is STEEM that is powered up. Steempower is what gives you more influence on the platform. Your vote is worth more and you can earn more from curation. Unlike Powering down, Powering up is instant. It's impossible to sell Steempower only STEEM can be sold.
For the price of STEEM, this is fantastic news because it prevents powered up users from selling their profits straight away. But on the other hand, it might also prevent new investors from coming in. I personally believe the 12 weeks powerdown is good enough for now.
It doesn’t mean that dumping of STEEM is not possible.
Price predictions
There are some users here with a huge amounts of Steempower. (they are called whales)
Let’s take user Jamesc for example. He’s a whale.
He has 3,329,299 Steempower as of writing and will have access to 256,099 STEEM in 4 days from now from his powerdown. That’s roughly 60.000 dollars.
All this you can lookup on http://steemwhales.com
If he and others that are powering down decide to sell all of it. What will happen to the price?
Will there be enough buyers to sustain it? It’s an interesting question.
When I look at my personal situation. I couldn’t invest more than I already have at current prices to make any dent in the amount that I have. I consider 10.000 dollars to be a lot and can't risk more money in the bank to add to this.
So investments must come from others.
If the price of STEEM can hold even when the big guys sell (again: this is all unknown, I have no clue whether they will or not) the price can rise a lot more. But if there is not enough buy support from exciting or new investors expect the price to go down.
My current sentiment :)
If the price comes down, I would become a buyer again. But if it won't then the amount of Steempower I have now will be the amount I'll carry to wherever this platform will go.
I have no intention of powering down. I believe in Steemit and have started to become so fond of this place. I see a bright future.
It might become the best investment I have ever done in my life.
Whatever happens, these sure are interesting times here at Steemit. You just don’t get this on any other platform.
Steem on!
