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What are the odds of steem ever getting to $5000?
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Currently the total supply of Steem is 325 million. There are that many coins in existence at this moment. If you multiply that with a value of 5000 dollar per coin the total market cap would be: 1.625.000.000.000 dollar which equals to 1625 billion dollar or you could also read it as 1,625 trillion dollar. 

Then you also have to take into account that with Steem the total supply is not fixed. It's not like Bitcoin that there can be mined only a limited amount of coins. So the total supply keeps growing all the time. Which would make the number even bigger over time.

To take this into perspective, there is in the whole world about 80 trillion dollar of money, including non usd currencies. The United States has about 22 trillion dollars of debt (private + government debts). The company Apple recently hit a market cap of 1 trillion dollar, which made it the first US stock to ever become that big. 

So for Steem to become worth 5000 dollar per token, it would have to become bigger than the company Apple, which has been around for 4 decades.

Personally i don't see this happen. It would be very difficult to calculate the exact odds since there are so many variables to take into account. (Randomness is our inability to calculate very difficult variables.) But if i had to guess i would say you are more likely to die in a car accident than that happening. 

Can it hit 10 dollar per token? Yes, it probably will when the bull market goes again in full FOMO mode. We could even beat that number.

There are also some other things you would have to take into account: 

The market cap only matters for valuing something because the price is only based on the current trading volume. Coins that are not traded don't influence the price. (It's like capital that is sleeping.) The current price of Steem is decided by how much buyers and sellers are currently willing to give for it. But let's say there is almost no trading volume, then it becomes very easy to manipulate the price for a single market participant. (That's why small market cap coins are often pump and dumped.)

Also, some part of the Steem is lost forever because people don't have the passwords anymore to their wallets. And when you stake into Steem power it takes a lot of time before you can cashout all your Steem because it get's locked up for a certain amount of time. You can only power down 1/13th of all your Steem power per week. It would take about 2 years before you can cashout everything. so not everyone can dump their coins in once on the market, more like the opposite. (It sucks to be a HODLER)

It's one of the reasons why i don't have much Steem power. I rather trade it on exchanges, it's more lucrative. And i like to ride the waves instead of being a permabull investor because crypto is so sentimental in nature. The market is mostly influenced by investors sentiment than the fundamentals. They only matter on long term, short term it's just FOMO and FUD that dictate the market.

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18 Comments

It is like the sun shinning at night. It is nearly impossible for Steem to hit $5,000. Well, I can't be too sure anything and everything is possible.

$0.66
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Hahaha, $5000! The odds are slim, very slim. But nothing is impossible. Before we hope for $5000, let's hope that it hits $23 first.

The concept of blood technology, especially cryptocurrencies cannot really be predicted, this makes it open to all manners of possibilities. But this one would take time as steem price is still tied to its market capital, market supply, the price of bitcoin, manipulations from stakeholders and general investment.

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I do believe that in the world of blockchain technology and cryptocurrency nothing is impossible because the system cannot be predicted when it comes to rise and fall of cryptos. The odds of steem ever getting to $5000 actually depends on it's market cap, market supply and the price of Bitcoin.

We need to understand the fact that most cryptocurrency were developed from the Bitcoin blockchain and this is why Bitcoin will always be the number one cryptocurrency while others may come below. This implies that if steem should ever hit $5000, then the price of Bitcoin must be far higher than $15,000.

Like I stated earlier, the blockchain system can't be predicted. I won't be surprised if such thing happens and this is why it is important to learn about how cryptos and blockchain technology operate as this will give you the insight of when to invest, trade and keep.

In conclusion, we can actually make this happen if we do the necessary things to boost the steem blockchain by attracting lots of investors and building large number of project on the steem blockchain without forgetting to invite more people into the steem blockchain.

Thanks for reading and I hope this helps.

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