Hard Fork 19: The Future Price of Steem

Just as everyone else, I'm quite happy to be making more on my posts. There's a big problem that needs to be addressed though.

Starting a couple of steps back, it's important to note Steem's history - it's printed without a limit (unlike Bitcoin), which means that inflation is already built in. In other words, as open market rules go, the more there is of a product, the lower the demand and hence its price. And we've already seen Steem drop significantly, for extended periods of time, despite all efforts of the developers.

On top of that, Steem's value has a tendency to be low, because no other product or service uses this currency - it's just Steemit (and its various frontends, like ChainBB). Even the next iteration of Steem, EOS, doesn't use its older brother for the distribution of the tokens, but instead will use Etherium (which dropped in price, as I predicted recently).

Something else I predicted is that that Steem will start dropping in value as well - and that was before the effects of the hard fork kick in. How did I predict that? Just like all other cryptocurrencies out there, Steem peaked in value a month ago, because of WannaCrypt ransomware and its related laundering of (illegally) accumulated BTC. Now that WannaCrypt infected computers begin to decrease in numbers, so does any related laundering, which in turn reduces the value of cryptocurrencies, which are being exchanged back for fiat currencies.

On top of the abovementioned, now that the hard fork is in place, and thousands of Steemit users will receive hundreds of dollars for their last week's posts, which they will undoubtedly exchange for fiat money, we will see Steem drop in value significantly. My expectation is that Steem will drop at least 20,000 Satoshis or in other words, it will lose roughly 25% of its current value.

You can click for a bigger image!

There are four things to counteract this process:

Stop printing Steem (which can't happen, because free Steem is required for Steemit to work)
Start using Steem in other products and services (that's up to the developers and we haven't seen any successful efforts on that front; it's actually a design limitation)
The Steemit users themselves - now that the hard fork is in place, they've been given a lot of power. If you see an already high paying post, vote with a lower percentage. If you see high quality content, which wasn't appreciated, vote with a higher percentage of your voting power. This will redistribute the wealth among more users, which will reduce the rate at which Steem is being sold and hence reduce the speed (but not the downwards direction) at which Steem loses value. And if we are lucky, this may be long enough for:
Another money laundering (which we have no control over, but will increase the price of Steem for a period of time)

If you have any questions or suggestions, please leave a comment - I enjoy a good discussion! Also, don't be shy to upvote or resteem, if you found this information useful - my posts rarely receive lots of cash, and I certainly need some to support my expensive photography hobby! Thank you!

Check out some of my previous posts: