Many People will Join Steemit -
Low steem prices are useful for a better powerdistribution of this network and are a great opportunity to increase your stake !
Just take a look at the latest chart of the Steem Price
https://coinmarketcap.com/currencies/steem/#charts
Normally it isnt fun to look at a chart like this.
(some people would even say this looks like a typical pump and dump!)
If you had invested in the last month you are maybe worried about it.
If you did before, it was more fun to look at the chart a few weeks ago !
But this isnt a normal Chart.
Because Steem isnt a normal asset or cryptocurrency !
It is Magic =) !
Actually this cryptocurrency isn't just simply based on Miners and investors it is more a sharing Society.
The Steemians !
So it really does matter what the people in this society are doing to the value of the Steem token.
And the Individuals in this community are doing very very well so far.
If we look at us as Miners of Content, and we are miners in way , our hashrate and our mining quality is simply increasing since The last 3 month !
This "Hashrate" or lets call it "Power of creating Content" is growing more and more every day.
Before the first pay out in the first week of july there were only about 2000 accounts listed.
So the growth of the membership is even bigger than the price rise was.
Because the Steemit community as a whole made very smart steps it created huge motivations to join steemit.
And as we can see on
https://steemd.com/distribution?fishy=yes the participation of active users in % is huge !
In longer term nearly 100% !
So this growth wasnt stopping or falling like the price it isnt even slowing down !
Any individual who joined steemit will have its own experience but as far as this highly participation will go on it is a really bullish sign for Steemit and its tokens.
In this scenario it really matters because the Steemtoken is actually build on a kind of "proof of content" !
So lets take a look at the chart of the last 3 month we can see huge movements with a huge volatility.
~1600% price increase within about a month and a quickly following price correction.
There was formed a massive Bearmarket the last few weeks after the price reached more than 4$/steem (until 1.49$ atm)
And it goes on.
last 7 days chart.
Worried about that ?
It is normal that you want to power down to cash out when the price of steem is very high based on your personal opinion.
BUT
as the value of the Steem Token is falling, the ratio of SBD / Steem is rising.
So you can simply get more Steem for your earned SBD and with it more Steempower.
The ratio of Steem to Steem Power is 1:1
So on the opposite of powering down on high prices it would be smart to think about powering up when the prices of Steem are very low
( of course just in case you think and believe in longer terms on steemit)
Example
If you got 2000$ for upvotes for all of your posts and comments in the last month combined.
You would have received Steempower worth of 1000$ and 1000 SBD (steem backed dollars)
A
So when the price was hitting 4$ and you would had sold your Tokens you would get :
1000SBD / 4
=250Steem.
B
At the current price of ~1.50$ this would be
1000SBD / 1.50
=666.666 Steem
The difference between A (4$)and B(1.5$) is
416.666 Steem !
So if you ever thought about powering up some of your earned SBD it is important to realise this.
In these Example you sold your SBD
and so you bought Steem.
But if you did this when the price was at 4$ you would have 416.666Steem(!) less than the one who bought at 1.50$
(rembering this old strategy of buying low and selling high?)
Buy steem when they are at a low price if you want to Power up Your Steem Power !
The Price will fall until it is low enough for the right individuals to power up and increase their Steemit experience!
And of course nobody really knows what the bottom is.
just buy the dip ;) !
I guess the most individuals had mostly great experience the last 3 month no matter what the price did.
The really beautiful thing is, if you just enjoy your experience on steemit you simply dont have to care about what the market do. Because you get half of your rewards in SBD which actually is a stable currency backed by the price of US Dollar.
So if you keep your money in SBD you dont have to care about the volatility of Steem.
But if you dont really need the Money out of your earned SBD on this platform you should think about using it to power up while the prices are getting cheaper and cheaper.
In this case the lower the price the better the ratio will be.
So when you remember this huge growing of the membership right now and if you can imagine a scenario where steemit will exist in a few month what do you think will do this to the market ?!
.....
Powering down is a tool to drop the price !
Powering up is a tool to push the price !
....
A lot of People will join Steemit
....
Once the price dropped enough there will be a wave of growing fishes, dolphins, orcas and maybe a new generation of baby whales.
Enjoy your experience. and dont be afraid of low steem prices they are a great opportunity to increase your stake and help for a better powerdistribution for this network.
The opportunities of powering up and powering down will affect the market ferquently in the future just be aware of it !