Steem is currently fraught (unfortunately) with fear of lack of appreciation of steem price (however this is good for those who want to buy more steem) leading to large number of whales powering down either to reinvest in an ICO (most of which are scams) , altcoins or for personal use. Moreover, there is nothing wrong with an investor taking out some of his/her investment if there are legit needs.
However my concern lies in purporting that steem price will never rise up to the moon. This action, however, has led to disparity between deposit and withdrawal as indicated in @lukestokes recent Exchange Transfer Report: 8/20/2017 to 8/26/2017 - with over $2.2M heading out the door this week- I wonder what will happen to the price of steem if this trend reverse ie more deposit than withdrawal? (you know the answer)
Another issue is with regard to excessive supply which negatively affects crypto currencies prices -please see my former post for detailed analysis .Conversely, however, there is no need to worry with regard to steem because the future is very bright.
Why you should stop powering down and rather buy more steem now :
The upcoming Hard fork 0.20.0 which is known as velocity has 3 main priorities : Communities, Easy Onboarding, and a Mobile Application.
Easy Onboarding: the focus is on improving account creation and reducing the friction involved in signing up millions of new users and thus bring in millions of users and developers to the steem ecosystem. This will certainly drive steem price to the moon due to demand will be too much leading to price increases. The strategy include:
- Burning STEEM for Account Creation to Prevent Abuse: presently new accounts are funded with initial steem power in order for new account holders to have the minimum steem power needed to transact in the blockchain. However this has led to automated abuse of the sign up process to yield free steem to attackers concomitantly with spammers creating multiple accounts in order to acquire free steem (some have 4000+ accounts used for up voting scams –see my former blog posts for details)- this also increases the cost of sustaining the protocol. Furthermore, another limitation is that when a member power down fully he/she will be locked out and thus be at risk of losing access to his/her account which is a disadvantage. Therefore, burning STEEM on each new account (terminating the token and getting rid of them from the total supply ) and crediting the account with permanent minimum bandwidth will take care of all these limitations. Moreover, this will also take care of the issue of excessive supply –( Please see my former post) which negatively affects steem price.
Moreover the update will include other new new changes:
- Discounted Account Creation.
- Remove Account Creation with Delegated Steem Power.
- Remove Vote Dust Threshold
- End User Impact
Pls see @steemitblog for full details including technical notes
Community Building : the new update will encourage more community building just like @teamaustralia : steemit fastest growing community -which will lead to more networking .
Mobile Applications: Ability to continue steeming whilst you are on the move. Even though we have a great mobile app : eSteem , steemit android app which is in its final testing phase as indicated by @sneak will be a game changer .
Conclusion: in this article, I outlined the reasons why some members are powering down their steem and indicated why it is a bad idea. Furthermore, I discussed about the upcoming .20 velocity Hardfork which will lead to improve user experience plus open the flood gates for millions of new users leading to increase in steem price. Imagine what the price of steem will be if steemit reaches 500+ million members in few years’ time and each account creation burns steem? It therefore, makes better sense not to power down your steem rather now is the time to buy more steem and power up.
What do you guys think?
• Good point, I will buy more steem and power up
• I agree with your analysis but will add the following poin / points
• @charles1 Stop writing nonsense; I do not agree with your analysis-in fact, I am done with steem and steemit and will power down!!!!
Send in your comment, Please resteem this for others to join and up vote to send your support.
Read my former blog post : the issue of scam and spam and how steemit can save you from being ruined
For those who want to be an investor in Bitcoin wallet see X coins link: https://xcoins.io/investors?r=v93e2z