Why I Believe $10 Steem is Possible With it Without a Bull Run
During the last crypto bull run Steem hit an all time high of $8.57 a Steem. To many people this might seem like the max price of Steem or a price only obtainable when all of crypto is pumping but this isn’t my opinion.
During the last bull run Steem was unproven, infighting was rampant, and there weren’t many projects out there using Steem. When prices dropped SteemIt had some tough times, things looked bad but the idea and product survived. The technology was still in its infancy and surviving a crash at such early stages is a sign of good things to come. The companies that survived the dot com bubble of the early 2000s went on to rule the world in the 2010s!
Steem and the cryptocurrencies that survived the crypto crash are likely no different. Since that max price over a year ago Steem engine has come along, with SMTs coming out shortly. Developers from all over the globe have started developing for Steem with virtual card games coming out, apps like Partiko and Appcs have been developed and projects like Palnet and now Steemleo are expanding the ecosystem into new tokenised usecases!
Now that’s all well and good but how is $10 Steem more than a dream? $10 Steem would mean the Steem “market cap” is worth roughly $3.22 billion(there are currently 322 million Steem out there). That’s a big number but it’s not that big.
If SteemIt becomes a mainstream social network it’ll be competing with companies like Twitter with a market cap of $27 billion, Snapchat market cap of $19 billion, TikTok which is oddly valued at $75 billion, and Reddit valued at $3 billion. I excluded companies like Facebook and Google as they are more than social networks. Still though these above companies have a minimum market cap of $3 billion so if Steem can gain massive popularity as any of the social platforms above, $10 Steem is very likely! What advertising company wouldn’t buy $200 million in Steem to reach millions of users daily for years(they aren’t even losing value since it doesn’t cost Steem to advertise, just upvotes)?
Assuming the social media side of Steem fails the cryptocurrency side of Steem still exists. Like ETH($32 billion) and NEO($1.57 billion) Steem can be used to tokenise ideas and products. With fast transaction times, a solid and steadfast cryptocurrency community behind it, a proven track record and SMTs coming soon Steem might soon be giving other cryptocurrencies a run for their money! Assuming the cryptocurrency markets pickup, even to early 2017 levels, a $3 billion market cap due to SMTs is definitely foreseeable.
Finally, Steem could just be valued as a straight up classic cryptocurrency. In this case it’s competition would be everything from btc to hundreds of failed coins. Steem has a fast transaction system, is consistently being improved upon, and is semi resistant to many mainstream attacks. That said being a Steem witness is a hard game to break into with many whales being insular so I’m not sure how much potential we have here. Valued strictly for its transaction powers $10 Steem might be a pipe dream.
That said if Steem can capture just a small section of each market a HUGE $10 billion dollar plus valuation is definitely achievable and as Steem grows its pull grows too. If Steem is worth $10 a Steem content creators on Instagram, YouTube, Twitter, TikTok, etc. will be drawn in. With these creators will come users. Chasing the users will come developers and slowly Steem will snowball. Maybe $100 Steem by 2025 isn’t a pipe dream?