Hi all,
So I've been reading up on Steemit and STEEM for a week or two now, but there is something which I don't understand yet.
What drives the price of STEEM up or down?
I understand the basic concept of supply and demand, but how do we apply these to STEEM? Could anyone give me a technical analysis of this, and give me a prediction for the future?
So I get the demand part, it's driven by new users that need STEEM for their new accounts, and by investors that buy STEEM because they believe the price will go up at any moment in the future.
The supply part is something I don't really get yet. I read somewhere that around 400 STEEM is created per hour, or something like that? Is that true? Does this happen at a flat rate throughout the year, or does this increase incrementally relative to how many users the platform has?
So how do supply and demand work in this situation? I am trying to understand the analysis a professional investor with full knowledge of the workings of Steemit and STEEM would be making. Which factors does he take into account?
One of my reasonings is as follows: on Alexa.com the Alexa rating of Steemit.com (i.e the traffic the platform receives compared to other websites, expressed as a rank (Google is #1)), I see that the growth of the platform is accelerating over the last months:
(source: http://www.alexa.com/siteinfo/steemit.com)
This means more and more people are using the platform. This is also likely to mean that more and more users will buy STEEM. So, the new users are positively influencing the demand side. But the price is dropping over the last weeks, so the influence of investors that are currently bearish is even stronger. OR there is an increase in supply of STEEM which lowers the price. Now who can enlighten me?
Please be as technical as possible and motivate your opinion well.
I appreciate your thoughts!