Steem's price have gone up a lot as well, not just Bitcoin, so let's see whether Steem is in a bubble and should we expect a correction? I have explained my position on Bitcoin in my other post, and the issue is that relative to fiat currency, pretty much all coins are in a bubble, but that doesn't mean that Steem and others are not massively undervalued or that they don't have potential in the future.

I have watched this video all the way through:

The older guy was just mentioning Steem and how it has no cash inflow, making it prone to crash given the inflationary nature of it. Or in other words Steem doesn't have a revenue stream, but it essentially distributes investors/speculators money to content creators.

So in that sense he may be right, because at this moment Steem is not in it's maturity. It's still in growth phase, but the network effect is what it matters.

An economy grows linearly usually, and that linear growth is due to commerce and adoption, as in people using that currency for everyday purchases and storage of wealth. Without these, there is no intrinsic value nor inflow of cash to make up for the inflation.

Steemit itself already gives social value to Steem. Then we have also the following:

A lot of new services are coming, so Steemit might be just a social platform now, but in the future it could be much more, an entire economy can be built on it, we already have the people, now we just need a market.

https://www.openbazaar.org

I believe you can even buy stuff with Steem on Openbazaar via Shapeshift transfer. So on the spending side Steem is already covered.

What needs to happen is for some kind of revenue system to be built on Steem, like some advertising feature integrated into Steemit or something like that. Maybe a Steem mobile wallet, or some sort of revenue stream.

Like Steem based gambling is also a good one, gambling is always good:

https://steemdice.net

So there is some influx into Steem, but not enough, I admit. But as I said above it's still in a growth phase, so there is a lot more room.

So even if we will see a correction of the entire crypto space relative to the fiat currencies, it will probably come back, because this is a growing economy here. However I am certain that altcoins are undervalued relative to Bitcoin.

Because if Bitcoin pops, most money will probably go back into fiat, but some will trickle down, and that some might be like 5 billion USD, which is enough to pump up a lot of coins to heaven.

So Steem may be a little bit overvalued relative to the USD, but it could reach this real value in the future as more people join, plus relative to BTC it could increase a lot.

It's a game of relativity, it depends from what of point of view you look at it, after all all value is subjective. Who knows maybe fiat will crash too, once we will have very good storage systems where wealth can be stored better than in fiat.

In conclusion I think Steem and Steemit is very valuable, and I don't think their growth is anyway near it's end, so the price should reflect this more often than not, but correction could happen in the meantime.

Disclaimer: The information provided on this page might be incorrect. I am not responsible if you lose money using the information on this page! This is not an investment advice, just my opinion and analysis for educational or entertainment purposes.

Sources:

Is Steem in a Bubble?

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