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I think that the downtrend in the Steem price has bottomed out and we are in for a bullish uptrend now. Steemit is literally better now than it ever was, we are constantly seeing new features added to the website and many new services come out now that deal with Steem, the currency. So the demand for Steem is only increasing, not to mention this website already has more than 325,000 users and rapidly growing.

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# The point

So while Steemit is growing, gets improved, and many Steem based services appear that further increase the demand of Steem, the price looks like has bottomed out, and a reversal is possible anytime now. Steem is a perfect currency for commerce since it has 0 fees, so as soon as we see commercial applications being launched on Steem, the price will skyrocket.

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# Inflation

Don't let the inflation rate fool you. The daily inflation is limited, so it doesn't matter if 1 people use Steemit or 1 million, the inflation rate is the same, it's only that that sum get distributed across more people. The current inflation rate is I think measured by the `reward_balance` variable which is at [691,045.204 STEEM](https://steemd.com/) now that gets distributed daily, so whether it's 1 guy claiming this or 1 million, it doesn't matter in the large picture.

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# Demand

### There is [Peerhub](https://www.peerhub.com/).

They already accept Steem, so you can buy stuff there with Steem. This makes Steem officially a currency since you can trade it directly into stuff. There were other attempts in the past at making markets for Steem, but I guess as more people join in, the merchants will multiply as well. It's a chicken and egg problem, and first we need more users, and then we will see more commercial activity, more merchants and vendors opening up and starting to accept Steem. This is already happening.

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# Conclusion

So it looks like all stars have aligned up perfectly, and it's time to buy Steem in my view. I have already stashed up about a week ago, and yes I am powering down on this account, I am not a hypocrite, I do not wish to hold SP at the moment, but I do hold more raw Steem in cold storage, I have figured it out how to setup a coldstorage wallet for Steem, so I am holding Steem there. Whether you store Steem or SP, it's your choice, but I think you have to get some if you believe in the future like I do.


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***Disclaimer: The information provided on this page or blog post might be incorrect, inaccurate or incomplete. I am not responsible if you lose money or other valuables using the information on this page or blog post! This page or blog post is not an investment advice, just my opinion and analysis for educational or entertainment purposes.***




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