Why Steem crashed.
You may be wondering, why this terrible crash in Steem's price has happened over the past few days.
Currently, the price is sitting at around 0.0035~ BTC. And many investors are panicking, including me for a day or two. But then I realised something.
This isn't something that comes unplanned.
In fact, Steem is very public about its dilution rate of around 1% per day currently. This corresponds with the approximate decline in Steem's price over the past week or two.
Do I need to be alarmed? What should I do?
My advice to you is to keep a cool head, and remember that it is the long term that matters. Short term prices can be volatile at times, and even manipulated by margin traders to hide what is really going on. All you need to know is that Steemit is still alive and thriving. Price doesn't equal real value. Price doesn't equal potential value in the future. Price is only a figure that someone is interested in buying something for.
Just because something is crashing, doesn't mean you can't profit from it. You need to go against what others are doing right now. Others are panic selling, but you know for a fact that Steem has a bright future in front of it. You know that Steem will rise in value in the future. Not rise in price necessarily, but value. And that value will be reflected in the price.
Remember that Steemit is still in its beta stages. It is doing exceptionally well, already. It has a larger market cap than litecoin and dogecoin. It has a community of 10k+ active members.
You don't need to be alarmed about the inflation/dilution rate. If the number of quality content that the community produces goes up, then the value of Steem will go up. It's a fact. Right now, it might not be the case. But remember, there are 7 billion of us on Earth. And only a few thousand users are currently using Steemit. Look at the potential Steemit has got.
I suggest that you buy as much STEEM as you possibly can at this cheap af price, and hold it for the long term. Convert it into Steempower, to hedge against a part of the dilution. Remember that Steempower provides you with a 90% P.A. interest, which is better than any bank you can find.
If you invest in Steempower now, you'll cashout the full amount in exactly 2 years. Imagine if just 5 million new people joined, which is a conservative estimate. Their contributions via their unique stories will bring up the overall value of Steemit, as well as the Steem that you bought 2 years earlier.
Where we are today.
Steem, as I mentioned, is still in beta stages and is doing exceptionally well already. We need to consider the bigger scheme of things.
This is what I think we are in the history of Steem right now.
Bitcoin analogy
Gold analogy
Silver analogy
After looking at these charts, and you still think that Steem is about to crash to zero, then I'm sorry. You're a dumb shit.