Tesla fell from its all-time high of 389.61 USD to 343.48 USD by now, down 11.84 percent – that’s the truth. But who would say that, just a day like this, as Tesla is up 5.6 percent today? Tesla is up approximately ten percent in the last 12 months, from 313 to 343,48. I can’t understand why the cryptocurrencies are measured ultimately by it’s relation to all-time highs. As if all wanted to paint the worst picture possible.
It depends on
Steem is down from it’s high of 8.4 USD (intraday?) to 34 cents, at the time of writing, that is a fall of 96 percent. But in a year, in 12 months, it fell “only” 64 percent. That is also a lot, but if we consider the 100 cryptocurrencies with the greatest capitalization, Steem is on place 51, exactly in the middle. Steem is nothing special, not worse than others, it performed near average. (See table.)
But Steem is 371 percent up from the lows of 7,2172 cents of USD on March 12, 2017, to 34 cents today afternoon. That is 148 percent per annum (in 624 days). Why have I chosen the all-time low, can you ask. But why have others chosen all-time high, am I asking. I suppose, 8,40 USD Steem was unrealistic and 0,0722 USD was also unreal, maybe we should use some average. Or 1Y, 6M, 3Y etc, as by other investments.
Booms and bursts
I know there is a lot of other bad news, a shrinking number of active users, authors, curators, whales powering down etc. But, weren’t we prepared? We all knew cryptos are very volatile, hectic price movements are normal in this “industry”. The oldest ones, Bitcoin’s history is full of big falls and incredible booms.
Small bulls jump lower, huge bulls jump higher. But they can fall more after, too. After the big bubble of the end of 2017-beginning of 2018, the correction also resulted in a very big one. But cryptos can’t declare bankrupt, must never close business. The story never ends, I’m sure there will be a new bull run again. I don’t know when, and at which prices, but I’m sure of that.
Selling low, buying high
Black Friday, Cyber Monday. I can’t understand why people are attacking the shops and malls for 10-20-30 percent of price discounts. But if some shares, bonds, cryptos or other investments are 20-30 percent cheaper, they are panicking and are selling on multi-year lows. The typical behavior of small investors is, selling near lows and buying near highs. The average private investor is mostly loosing.
If you ever wanted to buy cryptos, I think, now the time is near ideal. Much better now than in bubbles like last December, or January. Or, at least, these days are much better than every other in the last 14-15 months, approximately.
Of course, I told you... no, not really, I didn’t tell you bitcoin will fall further, I only wrote it was possible, and better don’t put all your money in cryptos. You have to diversify your portfolio. If you did so, now you have reserves, “emergency fund”, and you can decide if you buy more crypto, or not.
So, I suggest, don’t invest all your money in the same crypto, and make a plan B just for the case a long-long crypto-winter was coming.
And here I meant that the “mass adoption” of cryptocurrencies can take much longer than many crypto-fans are expecting.
The bottom line
If I am thinking about the possible prices of Steem, I have so many unanswered questions. Please, help me in the comments if you know some answers, or link me other posts:
- Is there any known method to calculate the (or a) fundamental value of Steem?
- Why is Steem underperforming other cryprocurrencies? (If it does; it’s a question of comparison methods and time frames again.)
- How will Steem handle the competitors and how competitors will perform? (Tron, Lino, etc.?)
- What are the differences between this competitors? Are they really competitors?
- When will Smart Media Tokens be ready, what importance will they have and how will they affect Steem price and Steem economy?
I am not a financial advisor and this content in this article is not a financial or investment advice. It is for informative purposes only, or simply to make you think, entertain, increase testosterone and adrenaline level. Consult your advisers before making any decision.
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