Fixed supply Vs Unlimited supply of Cryptocurrencies

9 years back when I joined Steemit. The price of Steem was somewhere around .50 and .60 and during the peak it touched 6$, after that in the next cycle the there was a another all time low but no another all time high. And then the all time low kept coming down and so do the all time high kept coming down year after year, with the current all time low being at .04. Now let's compare BTC against this, where the all time low and all time high has kept moving up and not down. There are lot of people who still feel that Steemit or in that case even other alt coins who have seen great numbers at one point of time will be achieved again. But the fact is no they will not and the major reason behind them is the supply.

These altcoins with unlimited supply are like how government is printing money and there is no limited supply. You can also compare it with Gold where the supply is limited. We know that there is only so much gold that will be available and because of that Gold price has only moved up all the time. There is a momentarily dip in these assets where the supply is limited but from there, they only move up and not down, unless there is some major demand drop or the price goes up so much that it becomes impossible for masses to buy it.

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There are pros and cons of both, but there is a simple logic oversupply means the value starts going down, which is happening with most of the altcoins. There are very few altcoins who with unlimited supply also have been able to move up like ETH because ETH has been deflationary at times. More ETH is burned than the new ETH issued; that's why it falls in the sound bracket of altcoins and not in the volatile category. There is no limit to ETH and at the same time there is no reckless supply as well, which is happening with most of the altcoins and they keep losing their value in every cycle. They keep hitting new lows and their highs also keep coming down.

Steem last high was around 1.30$, so what are we expecting in the next cycle. My guess is maximum it will touch .70 or .80 and that too in the last euphoric run that will happen.

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