This is a very important question that needs to be to be addressed urgently. I read some of the answers that argued that the current fall in price is due to the fall of bitcoin price. While that's true, it's not the entire truth.
Steem has been on a steady decline on coinmarketcap. If its price fall were solely based on bitcoin, it should still remain its place on coinmarketcap. As I speak to you Steem is currently dangling between ranks 40 and 50, a far cry from the twenty something range it used to spot.
If you ask me, Steem has been doing a bad job in communicating it's potential to cryptocurrency investors. So far, most of the people that value Steem are all on Steemit. Of this number, only few are actively buying Steem in significant amounts. The rest are always cashing out their payouts and powered down Steem to meet daily needs
What can be done? I think there should be dedicated marketing team for steem. If there is, I'm not aware of such. @oracle-d is trying a lot in this regard but they could surely use some help.
Plus, I think SMTs can help revive trust and interest in the Steem Blockchain, if well executed.
Those are my thoughts for now
As far as STEEM prices are concerned, it's not an issue about public trust at all, but just an impact of Bitcoin's price decline, which created a downward pressure on the entire cryptocurrency market. So, it's not something that needs a solution per se. Instead, the people behind STEEM, from Steemit Inc, to the developers of DApps, to regular users of the blockchain like you and me just have to keep moving forward and not be too concerned about prices, at least not in the short term.
Let's begin with why the STEEM price has plummeted, in the first place. The recent decline in STEEM price is actually due to the decline in Bitcoin's price. I've talked about this at Musing.io before. Basically, Bitcoin's dominance in the markets, both in terms of market capitalization and it's popularity as a gateway coin, means that any fluctuation in its price will create a ripple effect that will be felt by all cryptocurrencies. Thus, all cryptocurrencies, at least for the time being, will rise and fall with the price of Bitcoin.
That's why just as STEEM's price has fallen to one of its lowest levels this year, closing at $0.60 US in November 16 and falling even lower today at $0.35 US, Bitcoin's price was doing the same. According to CoinMarketCap, Bitcoin's price actually closed at $5,575.55 on November 16, also one of its lowest during the year at that time, and has fallen even lower today at $3,968.81.
(You can read more about my Musing.io answer on Bitcoin's impact on the STEEM price here: https://musing.io/q/hayzeed/p3bbqbtt5?r=profile-cryptocopy)
But why is Bitcoin's price declining too? According to market analysts, the recent Hardfork of Bitcoin Cash is the one to blame, with the Hardfork shifting some hash power away from Bitcoin mining and toward Bitcoin Cash mining as some miners position themselves to take advantage of a potential price increase, the same way that Bitcoin Cash's price increased dramatically after it split from the original Bitcoin blockchain last August 2017. The resulting hash war between the two Bitcoin Cash splits, might have also worsened market conditions, since some exchanges halted trading while the new Bitcoin Cash chains resolve itself.
So, while the prices are alarmingly low, it's not really something that we could blame on the Steem blockchain. It's just how things are rolling in the crypto markets.
With that said, while it's good to be realistic and accept that STEEM prices are low at the moment, it doesn't help to be pessimistic too. Yes, the price of STEEM is declining. But this does not mean that the low price is the "new normal" now. The low price is just the price right now. Given the volatility of crypto markets, the price of STEEM can just as quickly increase tomorrow as it has plummeted in the past week. In fact, unless you're a crypto trader whose gains and losses are affected by the daily drops and increases in crypto prices, you really shouldn't bee too concerned about the daily price of cryptocurrencies, like STEEM. Instead, you should be thinking about a cryptocurrency's long-term prospects. And this is where STEEM and the Steem blockchain are ahead of the pack.
But why am I still optimistic about STEEM and the Steem Blockchain's long-term prospects? Three words: Smart Media tokens (SMTs). SMTs are the future of the Steem Blockchain. It might even be the golden goose that will finally catapult STEEM's value to where it really should be (not the current $0.35 US that the market says it's worth). With its upcoming launch in the first quarter of 2019, SMTs could do for STEEM and content businesses what ERC-20 Tokens managed to achieve for Ethereum and general apps like CryptoKitties.
By allowing content business and online communities, DApps, websites, and services to tokenize, SMTs could also potentially open the doors to mass adoption of the Steem Blockchain.
So, my point is there's no need to regain trust because there was no trust lost, at least as far as STEEM is concerned. STEEM's biggest issue is the fact that like the rest of the cryptocurrencies in the market, their price is tied to Bitcoin's price. And there's nothing anyone can do about that.
What's our best course of action then? As cliche as it may sound, we just have to keep going with STEEM and the Steem Blockchain's development. Move forward with plans to grow the blockchain, avoid powering down and losing faith in the platform, and just keep contributing in our small ways. Whether that's by keeping active on DApps like Musing.io, powering up every now and again, or telling people about STEEM and all the wonderful DApps being developed on the Steem Blockchain. Just keep in mind that the Steem Blockchain is one of the most advanced blockchains today, and that despite current market conditions, there are still a lot to look forward to in the horizon.
Hope this helps.
I guess the only thing is to wait it out. The one reason is that crypto hyped too much since the second half of last year. From what I understand is when the momentum is too large, it holds no real potential growth with an asset backing, then when it crashes, it crashes really badly.
It's a good time to be like a tiger. This is what I call survival mode time. The bubble has burst. It's good in a sense in a way which the cryptos are still finding its demand and supply. Maybe give it a year or two and it will hold steady.
It's just like during the internet bubble. When the net started and many companies got listed on the internet, many couldnt see any potential of those companies earning revenue. Amazon dropped to 6 from 90 and now the price is 1000 plus. Imagine that. I guess at this point, there will be few things that can regain the trust of these currencies. If the price reaches the bottom. At this moment, I am estimating the drop for btc to be at around 1.8k before you see some stability. The price at this point will maintain and many companies that cant make it gets wiped out.
Some will survive although not many. I believe at this point its the first mover advantage. There is no assurance of the trust of the public until that happens unless investors pump in more cash to a company to increase prices which is unlikely at the moment.
It's the general crypto market, and the altcoin market in particular that is taking a nosedive. It's nothing Steem specific. Steemit Inc is doing a lot of things right.
That said, the culture of the entire Steem platform will have to change. It is plainly obvious that the Steem community is too insular and self-absorbed. The content on Musing is yet another reflection of that. Way too much of the content here is about Steem. If the value of the platform is to regain its former glory or even go beyond it, we need massive growth. We need 100 or 1000 times the number of eyeballs on the content than now. All those new people will have to come from outside the cryptosphere. All the crypto-talk will only drive them away. All they know is Bitcoin is a scam and a bubble because mainstream media says so. The vast majority of the potential new users will not earn even a small fraction of what we are earning now. There will have to be interesting content for them to enjoy. What I suggest is that everyone try and come up with really good questions about mainstream topics. Whether English is your first language or not, try to write clearly and avoid sloppy mistakes.
Whole market is crashing man and it has nothing to do with steem itself. There are to many reasons for market to stay in FUD mode. I know that majority of people are mourning about current situation but trust me in about a year from now we'll be laughing at this.
Honestly i don't think steem and its community are ready for mass adoption, therefore i believe current market sentiment and deep are actually good for the ecosystem. If you're thinking long run this is probably the biggest possibility you'll have. A lot of things have changed during this bear period. Steem has become different place from what i've seen when i joined. More things were acomplished during this period then ever before thus giving me all the hype i need. Stay patient, good this are about to happen :D
Once people will start to realize that Steem is not just about rewarding content creators but rather Steem is an "Application-Specific" token which means the token Steem is used as a counterpart of Etherium that provides innovative solutions to users who wishes to develop their own tokens and app.
Steem assures a 3-second transaction time having zero cost which means a viable place for developers to create their own app/game. It also allows individuals/corporations/etc to build their own tokens on top of the Steem blockchain. Imagine a fee-less transaction and an assured 3-second transaction time. It is very essential to developing your own application/token.
I think for the moment we just keep doing what we are all doing. It will take a price increase to get people interested again - that is just the harsh reality!
I dont know whether Steem putting some money into advertising the platform would help or not, I do think that with all of the great dapps coming out that we will in the future bring in a much wider audience and mainstream usage on the Steem blockchain.
I see many of these dapps working hard and onboarding new users specifically for using their dapps. Exciting times ahead
Yes the steem prices are dipping quickly. There was a time when the value is 8 $ now, hardly it's 0.4 $. Which is very less than what the steem gained during its peak value. This reveals the volatility of crypto market. The price of steem is higher than its launching price 0.08$ so, we shouldn't get panic. It's time to show patience. Patience is virtue. It is a great time to invest in steem. Your investment will give strong message of believe to other fellow steemians. The other thing you can do is HODL and do lot of sterling to earn reward. Although reward are pretty low in price but it value is much higher than reward. For every 1 $ reward you earn almost 1.8 stee. So, if you believe in this platform just collect more steem power and steem
I disagree it is a matter of trust. If whales decide to sell, steem will nearly drop dead instantly. That's how it works with every crypto. Whenever BTC drops, every other coin drops too, and that's what's happening now. They'll all move upwards eventually, along with steem.
I don't think that Steem needs to do anything to regain the public trust. The price is going down because the price of all cryptos are going down. It has nothing to do with consumer confidence in Steem itself.
As a matter of fact I think consumer confidence in Steem is higher than it has ever been. New dapps are being developed every week and there are so many great things happening on Steem right now.
If the price of Bitcoin stops tanking the price of Steem will probably stop going down as well. It is just the reality of things like you say. There is not problem with Steem. If Steem were starting to stagnate and new dapps were not being developed and new content was not being created then I would say that they need to do something to make things right.
As it sits right now though, it is just the unfortunate reality of people seeing all cryptos as one and when BTC falls they all fall.
Don't worry, the sharp decline that has occurred over the past few weeks is due to the decline in Bitcoin as a mirror of all altcoins to date.
I am 100% sure that this cheap STEEM price can really help new members in collecting SP.
In addition, the price is determined by the market, and I'm sure the market circulation after this sharp decline will also make a sharp increase. So, we have to wait.
Besides that, STEEM already has an upcoming positive fundamental, namely the release of the SMT which will be official in Q2 2019.
Steemit should continue to keep the public trust in every way they can, whether the price is a penny per steem token or ten thousand dollars per steem token should absolutely make no difference what the public values it at. The loss of value isn't directly all of steem or steemit's fault, the BTC fiasco has caused the crypto market to take a dive because the public does not understand how messy of a process a hard fork can be. Now there is a giant mess in all crypto because BTC is the reserve currency of the cryptos.