I'm ready to go to bed now but since I had a nice afternoon nap, I feel like writing a little bit more. I wanted to discuss the price of Steem and people's expectations for its future. When the prices are low our thoughts are often about the price.
It's quite simple. For the price to go up, someone has to buy it from the exchanges.
Right now we are ranked No. 63 on the CoinMarketCap with the market cap of $125,822,748 USD. Steem's circulating supply is 316,713,392 STEEM. It's shrinking. I remember it being around 327M not too long ago. The less Steem there is out there, the better it is for the price.
So there are over 1.2 million users on Steem and if everyone bought just 300 STEEM, Steem would become very scarce. Right now 300 Steem would cost around $120 USD.
Scarcity drives the price up. There is this magic formula for any token to succeed which is Limited Supply, Limitless Demand. In other words, the more people want this thing, the more expensive it will be.
Is there any incentive for people to buy Steem? The incentives are there. It's Steem Power (SP). The more SP you have, the more influence you have on the platform, the more rewards you will get and the more rewards you can give to others.
But you have to power Steem up and not let it sit unused.
OK. The incentive to buy is there. What's stopping people from this on a large scale?
Well, some of them can't afford it. Really, if you live in Venezuela or other struggling countries, your thoughts are aboit how to get food on the table.
But even then, one has to think about their future. Not to spend everything on necessities but to give thought about the future needs too so that a person could bootstrap themselves their family out of poverty some day.
And obviously people from US and Europe can afford to buy some Steem. And some do but some choose not to.
Why not?
I think some of them don't know how. They came to Steem from mainstream social media platforms without previously been exposed to crypto. So it's an education issue for them. And some people just don't want to learn new skills.
What about those who know how to buy but don't? I think they have an issue with trust. They don't trust our platform enough to put their money where their mouth is.
Fair enough.
They are not sure if Steem will do well in the future and if their investment will pay off.
The thing will all investments is that there can't be any guarantees. It's risky.
But we have to understand this: if we want for a price of Steem to go up, someone has to buy it.
Actually more people have to buy it than to sell it.
So then of course people who don't buy but want the price to go up, are looking for others to do the buying.
"You buy and I will earn."
But who do you think will benefit the most if the price goes up? Those who buy and earn or those who earn only?
It's obvious to me.
If the price goes up...
If, if, if...
I get it. Some people are here not for the money. They are here for the community. Along he way they have created strong bonds with fellow Steemians and this is more important to them than the price of Steem.
But for others money is a strong motivator. If this is the case, it only makes sense to position yourself well for success if the price goes up. For those people it makes sense to buy some Steem.
Because the price of Steem also depends on the general crypto market tendencies. On the price of Bitcoin because it's the most well-known crypto currency.
I want to be the person who would benefit more (and help out my community more by extension) from crypto market bull run.
Do you?
Of course, this is not a financial advise and remember to never invest more than you can afford to lose.
Now I'm ready to go to bed. 😀