Bitcoin has been getting absolutely crushed this last week, and as you have likely noticed, it has dragged steem (and everything else) down with it.
However, what might happen if say, steem wasn't priced in BTC?
What if steem was priced in dollars, and euros, and yen, and yuan, and several other currencies?
Would it be more resilient to big btc pullbacks like we are seeing currently?
What is potentially exciting is that USD fiat pairs are not something that we can talk about only in theory.
They are likely on the way!
A few days ago a big development was uttered by the CEO of Bittrex.
I wrote about it at the time here:
Basically it sounds like the CEO of Bittrex is talking about adding dollar on/off ramps as well as possibly adding dollar pairs.
That would be an absolute game changer in this space and would allow each project to be valued much more accurately.
More accurate project valuations?
Currently we have(had) projects that were valued in the hundreds of millions of dollars with very little in the way of fundamentals backing them.
Some were even outright scams.
As long as bitcoin went up and they were priced in terms of btc, they enjoyed increased valuations.
I am thinking that this potential change at Bittrex could be an industry wide change and could help provide much more accurate valuations going forward.
I am thinking over the next year we will see many exchanges start to price more coins with fiat pairs as opposed to just btc pairs.
This could be good for some coins and bad for others, but either way, it will likely make for a lot more accurate pricing of cryptocurrency projects.
More accurate valuations will be good for some projects and not so good for others.
The positive for something like steem, which is seeing it's steemit.com website numbers off the charts right now, yet it's currency sitting at 2 month lows, is that it's wagon would no longer be hitched solely to btc.
In an environment like we are in currently, with btc dragging everything down, that would be a very good thing.
Things are going to change a lot in this space this year, strap in for the ride.
Stay informed my friends.
Follow me: @jrcornel