(Day) Traders speculate on assets often with little more than a superficial understanding of the asset's underlying value.
Indeed, the majority of traders (i.e. day traders) can be classified in two tranches: price action traders, technical analysts. Neither of which spare much concern to anything that isn't the orderbook or pseudo-post-modern financial-geometric art also known as indicators.
See these examples:
They make their money by buying and selling shrewdly, and foment volatility to complement their positions.
It's worth adding that price on illiquid exchanges where a few thousand worth of a crypto sold could result in a 20% price fall, is a very fickle thing .
Considering all this, it makes no real sense to regard price movement as a sort of prediction market .
Especially because most traders are only marginally invested in Steemit. That is, their investment in Steemit goes no further than the buy/sell orders placed on Bittrex .
What will drive price ultimately?
You and I. Us. The community.
The content creators, who work all day pouring value into the network , and the supporters who entice newcomers to the platform.
We will drive price , we will add value to the network. And considering that Facebook is trading at $116.86 a share (15/07/2016), does 20% volatility on a growing crypto-social platform currently priced at around $4 with great potential for growth matter?
I'll leave that for you to decide.
Yet personally I don't think so.
So, I will continue to create content.
And I will hold my STEEM...because the upside is too great to forgo.
Check out my other exciting posts!
First Steem-based Sci-Fi Series Out Today! Follow the tag #steemtales to stay updated:
Single Mother Next Door Neighbour Now On Steem:
https://steemit.com/money/@positive/my-next-door-neighbour-who-is-a-single-mother-is-now-on-steem-steemyourneighbour
How Steem Will Solve Global Inequality:
https://steemit.com/money/@positive/how-steem-will-solve-global-inequality
How Steem Can Learn From Bitcoin:
https://steemit.com/money/@positive/how-steem-can-learn-from-bitcoin-s-flaws#comments
Sci-Fi Fiction Series Based On Steem:
https://steemit.com/money/@positive/the-first-steem-dedicated-sci-fi-a-futuristic-steemit-powered-world
Why Steem Is Better Than Ethereum:
https://steemit.com/money/@positive/why-steemit-prevails-where-ethereum-fails-aka-why-steem-will-definitely-succeed
How Steem Will Solve Global Inequality:
https://steemit.com/money/@positive/how-steem-will-solve-global-inequality
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