Every upvote given needs to be offset by an equal amount of value coming into the Steem Blockchain.
Last night I ended up talking with @starkerz from @oracle-d till midnight about Steem.
Man, if you thought I could talk about Steem and be passionate about it this guy can do it too (and maybe even more).
@starkerz is the guy on the far right
He's been pretty occupied with 3speak (live AMA today) here but he makes a good case for why the STEEM price has been going down for a while now.
According to him all speculative value about the STEEM price has been depleted by now and we basically looking at the bare value of STEEM.
Steem has simply no more speculation to ride on. We have a working product and everyone that takes a day to study Steem should know precisely what it is and where it stands.
We simply can't sell 'stories' about future promises anymore. We are here today with a working product.
Now, because of the way Steem works every upvote is basically a selling pressure on STEEM (because most of this new STEEM will be sold at some point on the market) the price will continue to go down for a while.
What we are faced with is a situation that all blockchains will have to face at some point in their lives.
We are just 'lucky' in a sense that because of how far ahead Steem is we are just facing it years earlier.
And that is the simple question of How do we get money into our blockchain?
Or in other words. How do we make sure that for every upvote that is given (aka every new STEEM created) an equal amount of value (and preferably more) is being added to the Steem Blockchain to offset the given upvote?
Now the good thing from what I have been seeing on Steem is that this question is not just on @starkerz mind, it's been on my mind and it's been on the mind of many others.
And it's also been on the mind of Steemit Inc. And stuff is being done about it.
The recent blog post by the managing director of Steemit Inc. Eli Powell where she showcases their revenue streams from advertisements vs costs should make everyone feel a little better.
It's the right mindset and a very good start.
Another project showcasing how to generate revenue on Steem is Splinterlands (selling card packs for FIAT) and there are more.
I think this new economic mindset is the next change in the evolution of the Steem Blockchain and I expect a lot of focus on that part from many Steemians.
In the most basic sense, you can ask yourself every time when you receive an upvote what you did to add value to Steem (especially when you intend to sell the received STEEM).
I personally have bought almost 2 STEEM from the markets for every 1 STEEM I earned on Steem and I still have all that STEEM. Admittedly I didn't do this for altruistic reasons. I am an investor and content creator. I used my Steempower to empower my own blog or my own business/brand on Steem.
Now, I don't expect everyone to buy STEEM for every STEEM they earn (that would be insane) but I do hope that in the future when a content creator receives an upvote another party generate an equal amount of value or more on that piece of content and adds that value back into Steem to offset it.
From that point of view, I also find it easier to accept the EIP and the SPS in HF21 and have been coming around to it slowly.
Viewing it through this economic standpoint I wrote about, I find it much easier to stomach the upcoming changes.
When this new economic mindset finds itself more deeply rooted in Steem and we actually manage to generate more revenue than new STEEM being added...
O man, I don't have to tell you, we can expect some beautiful things on Steem for sure!
All in all a very refreshing talk with @starkerz for me and a lot of food for thought.
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I'm always amazed that nobody is mentioning anything about SEO (search engine optimisation) or CTRs (click-through-rates) when they discuss steem. Although you may have discussed it with Matt, I'm not sure :P Anyways my point is that the content generated that is upvoted should fulfil the purpose of being genuinely helpful to readers. If the post is achieving that then it should rank for the desired keyword. This should then generate traffic that should make steemit inc money as they are displaying ads and the reader may sign up and become a part of the community. This is what should have happened in the previous years, for the life of me I can't figure out why Steemit inc is not mentioning anything about seo, ctrs and all these basic metrics that bloggers like myself have been using for years now. Thankfully Oracle-D seems to be working on the problem by giving very clear guideline in terms of content and keywords, but not many people seem to even be aware of Oracle-D as of yet :S Anyways it's great to see that there are a few people who seem to be working on some kind of solution! So Steem on!
That's because on Ned's watch the idea was apparently to ride the speculative wave into the sunset.
It's true I mean a month ago when I looked at Steemit for the very first time and joined the people I spoke with were shocked that I didn't get here by some referral. They seemed genuinely confused when I told them I seen an ad for it on social media and looked into it. You can't take Steem mainstream if the mainstream has no idea it exists.
Steemit doesn’t worry too much about SEO because it has a widely diversified backlink profile which gives it superior ranking ability so they sort of get away with not having to have superior on site SEO practices
Having said that building it into the front ends of various dapps that encourage or sort of force users to do things that are SEO beneficial wouldn’t be a bad thing! I’m an SEO by trade and even though I love the blockchain the technical and onsite SEO issues make me cringe so hard but I know it’s not the core focus right now!
When it is, I’d be happy to jump on board a front end wanting to take on the task of being SEO optimized
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That’s because the SEO structure of steem is terrible. Steemit.com has good domain authority, but that’s about it.
Permalink structure is confused, canonical issues and duplicate content are everywhere, branding confusion, poor layout, and on and on. And while steempeak has enabled a sticky post, there is no such thing on steemit.com.
And then if someone does actually find your content and likes it, onboarding is still a major issue.
If you were able to put ad code in your own posts that might at least be something.
As it stands now, steem content does relatively little to actually bring money into steem
You people surely must have discussed a lot in a long duration of time and this will definitely breath hopes to many steemians
I've heard his argument more than once and it was just as convincing the second and third time around.
He's just right. Period.It should be our major focus going forwards - how to drive up external demand for the steem token.
Nice to see you rocking it with some most excellent British Steemians there!
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Yeah, it's hard to argue with the logic behind it. I'm having a blast here man!
There will be a dilemma: for say some content creators don't care since they are earning by selling earned Steem though Steem's price is dropping. But for investors it will look like an risky investing since they have to work extra to create more demand for Steem. If one is a FB stock buyer, he is not working to make sure FB is earning a lot. But it makes sense only for entrepreneurs to take risk to buy Steem, build on it and create demand for it.
However, the problem of Steem is too big for an entrepreneur to work on. In this case, entrepreneur can work on his SMT based frontend to earn enough from external source (e.g. Ad revenue) to make his TOKEN sustainable.
In this scenario, STINC will have the most of the responsibility to bring-in new money to Steem since they are the largest holder and seller of Steem. Though STINC has plans to cover all costs through revenue. But they have not shown any intention to buy back Steem or can generate enough profit to buyback Steem, more likely to the Binance model.
The most probable solution is to remove Steem for rewarding the content creators and put it in the hands of DApp entrepreneurs. Even STINC can launch their SMT. It will be decentralized since they can work independently on their own small projects. Or, there will be burning model for Steem similar to @steem-engine. SMT creation or continuation will require burning Steem. However, large number of SMT transactions will require to power up large number of Steem
Steem will be produced for SPS, witness reward and small PoS reward to SP holders. Demand for Steem will come from very low inflation, strong speculation (e.g. 1000s of businesses are building on Steem), RC delegations, DApp entrepreneurs who will need SP to build, small users (i.e. will require small SP to be active even in DApp).
Though it is a radical idea but probably the best solution. If Steem had no selling pressure from STINC and sellers (who earned Steem from contents or delegation), it would be easily at top 30-40 rank. Steem is still bought out by investors but are not FOMOing by seeing the ever decling price of Steem and lack of speculations the OP argued.
To create more demand for Steem due to its higher inflation, Steem by default needs better marketing which is absolutely missing from the largest holders of Steem. Some ICOs have addressed the demand and supply issue either by luck or intelligent thoughts. For example, EOS are sold by @block.one at the peaks of bull market and have war chest of billions where STINC has to sell Steem either it is bull or bear market. EOS inflation is near zero, speculation is high, investors have to buy EOS from another EOS investor. Though Steem has the best features, most usages and popularity, even better than EOS, it is a victim of supply and demand, whims of severe bear run in altcoins and wrong leaderships by early leaders.
However, Steem will reach low inflation state not soon but in a decade (1% in 2030) which is eons in crypto-universe. The solutions are to either create ninja marketing to overcome higher inflation or cease Steem for rewarding content creators (i.e. delegate that task to DApps such as @palnet, @steemleo) to lower inflation to keep up with demands.
The EIP will put more power into the hands of the already wealthy, so that they might - might - be able to fund such dapps as you speak of. Steem will become a banking chain where one earns interest to use in level 2 platforms.
This is gold.
🙌⭐️
Mark @exyle Something that I noticed Tonight in the Monster Market is that some of the Alpha Cards are Getting to be More Pricey. For People like Us that have some of those cards in our Deck I feel like I have a Hedge against the Price of Steem. So It Works in our Favor in many different Ways..............
Your faith in Steem is always inspiring and reassuring. 2 Steem earned for every 1 you bought is a good ratio. I think I'll approach that level soon enough. I'm around 3:1 currently, but buying other stuff at the moment because my crypto portfolio got a little Steem heavy during winter.
Recently bought some cards for fiat with some money I made selling some stuff on ebay. Kept a lot and also sold a bunch for STEEM/SBD. It's a roundabout way of getting more steem, but also upgrading myself in the game. I'm keeping a spreadsheet of the packs I opened and so far my ROI is about -40% based upon the market price for the cards. When STEEM price recovers I should at least break even on the proposition. Thinking about buying some more packs to see how much the ROI shifts with time.
I agree. If you look at Steem Engine a lot of people have come on board to support those new projects and to do so they buy Steem. The new communities help people limit their feeds to stuff they want to read and these sub-ecosystems help Steem by creating a reason for new people to buy Steem. This brings fiat into the platform and the pursuit of the power that stake brings promotes hodling, so these two forces should increase the value of Steem.
I have 2 questions:
What would happen in the (distant) future if we run out of people who want to buy Steem?
Aren't all investors hoping that they can at some point cash out more money than they have cashed in?
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No problem! (I hope I understand your questions correctly)
Then STEEM would be $0. Markets need buyers and sellers. If there are no buyers STEEM is worth nothing.
Yes. It's what I'm hoping for my STEEM investment aswell. But STEEM is different than Bitcoin for instance. I don't necessarily want to sell my Steempower but I will want to sell some of the money I get from renting it out (for Rc's) or for delegating it. (in the future).
OK. Let's aim for Steem to reach at least double digits and then we can cash out maybe 25 percent. Or would this be too early?