RE: Steem2LN - Pay at hundreds of stores using Steem!
Dear @steem2ln
Steem despite being a very good currency is not accepted in many stores.
Please correct me if I'm wrong. However, as far as I understand economy: if people would start using STEEM to pay for their purchased items and services, then it would only bring price of STEEM down. By creating more selling pressure.
After all, seller which would accept steem will trade it to stable coin or fiat currency. That's what most likely would happen.
Sellers will not be HODLing those steem. They will dump it all.
So every time we would use STEEM to pay for some item - result would be the same as if we would dump that amount of STEEM on the market.
Am I wrong somewhere?
I do appreciate ideas which would bring more utility to STEEM blockchain, however this one seem to be tricky and I'm not sure what to think about it.
Yours, Piotr
Thank you for your questions. My theory is this.
Cryptocurrencies can be divided into "weak" and "strong". Unfortunately, I consider Steem to be a weak cryptocurrency (so you have to do everything to make it strong) and say Bitcoin to be strong.
A weak currency is actually much more likely to be sold by people on exchanges (e.g. stores), whereas with a strong one such changes are less noticeable.
But what I think this is due to - the fact that Steem has no stores, entertainment. Instead, it has basic financial systems. If Steem gets back on track, it is likely to get stronger and stores of all kinds will try to store more Steem than sell.