Becoming Bullish on Steem Again
Improvements
The changes that are soon coming to Steem are, in my view, good news for anyone considering to invest in Steem. Pretty much all the changes are improvements as far as I can tell, but looking at it from the point of view of a potential investor two changes stand out:
- A significantly shorter power down period of three months (13 weeks).
- Reduction of the inflation rate to 9.5% and then slowly dropping over a ten year period to 0.95%.
Good for Investors
The old two year power down period was way too long from an investment point of view. Three months is more manageable and more in line with investment horizons in the cryptocurrency world, albeit still a barrier. People tend not to like investing in something they can not easily divest from, so I think that by making divesting faster and easier more investors will consider investing in Steem.
The combination of high inflation with a long power down period, made it hard to buy on dips and sell on peaks, as the value of liquid Steem dropped all the time, and powering up was not an option for short term investors. The drastic reduction in inflation means that one can hold liquid Steem without losing too much in the race against the inflation clock. This might help stabilize the price of Steem, on the other hand it might also make pump and dump schemes easier. Either way, it means more interest in Steem as an investment opportunity.
Bullish
The changes have made me more bullish on Steem, so I recently doubled my investment in Steem. This is not intended as investment advice, I am not pretending to be able to give anyone good investment advice. I am only sharing what I did, and explaining why I did it. It remains a gamble of course, but I am hoping my gamble pays off!
Are you also getting more bullish? Share your thoughts in the comments below.
BTW, have you tried this?
- Put your left hand over your head and touch your right ear.
- With your right hand move your mouse to the the upvote button below.
- Click on it.
It really works!
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I bought Steem and Steem power when it was around a dollar, but just decided today to buy 3 dollars more at a much lower price. I put 0.003btc right into Steem power.
Did not know that about the further inflation drop, thanks.
Tried it with the hand over my head, but on my mobile that was a challenge.
Yet, I managed to upvote!
:-D I'll have to think of a mobile friendly version!
Great article, to the Moon!
👍😁