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RE: Why are the value of votes going down this past month? [A Reader Asks]
The story post is very thought out but I have one question in regard to this comment:
People are selling STEEM which makes the price of STEEM fall
Wouldn't this only make the price of Steem fall if people were asking less for Steem than the current market price? I see bots all the time on small volume trading sites that manipulate the price of coins to make it look like the market is pumping to get the volume to increase and then dump their coins at a price point that gives them a decent price.
So if the majority of people asked for a price higher than the market wouldn't this actually help the price of Steem trend upward?
Again, thanks for the post.
Good point !
Go look at any coin, and zoom in to find a time where there is a sharp red descent. That is when people are selling below the selling price, and taking the buyer prices. I didn't mean whenever someone sells STEEM it will make the price fall and affect payouts. It takes an actual large amount of volume, like the red descent on charts. That shifts the price measurably. If people are willing to pay the asker price, or more, that sends the price higher yes.
You just explained what I wrote in my response. I just wanted clarification on what you meant with that quote. The way it was written made it seem if someone sells steem, in general, that the price goes down. Thanks for clarifying what you meant.
It's just referring to simple supply and demand.
If everyone is selling, then there is more supply than demand so the price will fall. If everyone is buying, then there is more demand than supply so the price will rise.
At the moment because the price is falling so hard and people are panicking, we're seeing more people dump their Steem on the market and just increasing the supply with nobody there wanting to buy it until it bottoms.
Yeah, I'm one of them people waiting for it to bottom.