Thank you @Gandalf for suggesting I write this
Lately with the falling price I've seen calls for "Stop powering down" and "Whales are dumping their steem". We need to stop this.
When you see the price falling, rising or doing anything crazy, keep this in the back of your head "Markets are Efficient". Free markets always win. It's why we always end up in the global financial meltdowns every year like Venezuela and Argentina. Governments step in and try to control the markets, capital controls and the like.
When we tell people what they can and cannot do with their own money, markets fail.
So how can you sell Steem without hurting the price? Please stop using exchanges!
Traders and speculators are on exchanges, they are ammeter and professional traders that buy and sell assets for the purpose of making a profit. They make money when the price is going up and they make money when the price is going down.
When you or I go onto an exchange to sell some Steem, we are trading against them. We could be hurting the price by adding unwarranted selling pressure, even when you have a trading bot that has orders higher than the current price. These add walls.
I started using Blocktrades.us recently to sell my Steem and SBD. Blocktrades has a trading desk and has a financial incentive for Steem to succeed. The difference is he does not sell into the market and hit SELL 10,000 STEEM which most of us do.
The biggest threat to steem's price is when a whale dumps into the market or places large orders that scare the market. Most of our whales are experienced enough to realize this. But it's really hard to do this well without using a bot.
Large buys and sells of Steem should be done OTC (Over the Counter)
In regards to Steem, I consider OTC all retail companies like Blocktrades, Shapeshift and Changelly. They have professional trading desks and know how to buy and sell without causing day to day volatility.
The benefits to buying and selling OTC are great. You get a good rate without slippage, you don't have to wait the few days and are not suppressing the market.
Your funds get delivered instantly!
By not keeping your funds on an exchange you can also save from those occasional losses on a hacked exchange, something generally ignored when people do their pricing analysis.
In the long term this is important.
We will hit a point where either 2 things happen:
1 - People stop selling because the price is too low and they are willing to hold and invest in the future of the platform.
2- Everyone panic sells and we die.
I think #1 is happening. Volume has been going down as we go lower.
If you sell retail, it won't effect the price as much! Please sell retail!
What are your thoughts?
-Charlie
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