Today, Steem prices have touched this year’s lowest. Many of us are very depressed due to a long bear market. During these times, many Steemians tend to take a break from Steeming due to their disappointment with the market.
But on the contrary, there is a case to celebrate this fall. If you’re an optimist, you will obviously see the blessing in disguise. But for all those Steemians who have decided to stay away from Steeming, here I’m listing few of the reasons for why a temporary fall in Steem prices should be considered a boon:
You will receive the same amount of Steem:
First, I’d like to clarify that you shouldn’t think that now you’re making fewer Steem from your posts. You earn almost the same amount of Steem that you were earning while prices were mooning.
E.g. If your post earns $10 STU (after curation), when Steem price is 1 USD; you get 5 SBD + 5 USD worth of Steem i.e. your payout is 5 SBD + 5 Steem.
But when Steem prices doubles to 2 USD (and assuming that you received the same number & power of votes on your post), you will get about $20 STU of payout (after curation) because the value of votes too increase with the increase in Steem prices. So you get 10 SBD + 10 USD worth of Steem i.e. 10 SBD + 10/2 = 5 Steem.
So in both cases you received 5 Steem. However, I agree that you made a slight loss on no. of SBD received when prices fell. But take respite in the fact that lesser printing of SBD during this period should result in its higher market prices. Hence you shouldn’t incur any losses due to temporary fall in Steem prices. If you don’t agree with me on it, never mind. Check the next point for a better alternative for how to get a better value from lower SBD payout.
Best time to convert your SBD into Steem
This is the best time to convert your SBD into Steem. As prices of both are almost equal, you will get almost equal no. of Steem for your SBD. So when the price of Steem soars, you will thank yourself for doing this conversion.
In my previous example, if you convert all your SBD into Steem; you will get equal amount of Steem. When you get 5 SBD, you will get about 5 Steem (if Steem prices equals SBD) and when you receive 10 SBD, when Steem prices are double, then too you will receive 5 Steem when you convert SBD to Steem (if SBD prices are half of Steem prices). So you won’t incur any loss due to the falling market.
You will receive votes with higher VW:
You must be wondering how this is possible. But this relates to human psychology. I’ve observed that when Vote Value rises due to rise in Steem price; people tend to vote your posts with a partial vote weight. E.g. a follower who used to give you a 100% vote when his/her vote was worth only $0.50; he/she will tend to give you only 50% vote when his/her vote value increases to $1.00.
This is purely based on my observations. The reasoning behind it (as I understand) is an arbitrary personal assumption by most people for certain amount of payout being a reasonable reward for an author. Therefore, your followers with this mindset will vote you with a higher vote weight when they see their vote value declining. So enjoy the higher payout during this period.
You receive a higher share of reward pool
Yes, you will receive a higher share of reward pool during depressing times like these. It’s because many Steemians take a break from Steeming or reduce their frequency of posts as they think that their efforts are not being adequately rewarded during these times compared to when the Steem prices were higher. With decreased activity, fewer votes are cast during this period. This results in proportionately higher influence of the votes that are being cast on the total reward pool. So everyone’s vote is valued slightly more than it was when there was more activity.
Great time to invest
Times like these are God sent for people looking to invest in Steem and powering up their accounts. New Steemians often find themselves at a loss when they see their account has negligible Steem Power compared to oldies. But they can’t Power Up significantly when Steem prices are too high. Buying Steem and powering up during these times will not only result in higher Steem Power for your account but will also increase your account value when prices get higher.
Do I need to state the thumb rule for investing is “Buy Low and Sell High”?
Re-distribution of Steem
Did you notice that mostly people having significant amount of Steem are the sellers during these times? So if whales sell part of their large holdings during these times and newbies buy from them; it will result in a better distribution of Steem Power (assuming that the buyers power up their accounts with it). Thus, this will contribute in de-centralization and uniform distribution of Steem power, which in turn will make this platform stronger in the long run.
Doubters Leave and True Believers Thrive
It’s obvious that during the time of shake-out, people who are not very confident of this project will make an exit and people who have a strong faith will buy Steem despite the falling market. This will restructure and re-organize the Steem community. It will be good to see more believers in the community than non-believers. People who are angry with this project or those who have lost faith in it should better leave it. Only the faithfuls should be rewarded when the Steem prices moon.
So whether it's up or down, let's enjoy
It's said that make your hay while the Sun shines. But the wise know Sun always shines somewhere in this world. Let's not give up, and learn to enjoy the ride whether up or down.
What do you think about the falling Steem price?
- Do you panic and stop writing because of falling Steem prices?
- Can you think of any other reason for Steeming when Steem prices are tumbling?
I’d love to hear your state of mind and reasoning behind it.
