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RE: Inflation as a Platform Cost. Another Look at Stake
People have to stop saying “but investors”. There’s no new money coming in, it’s all mostly pre-$1/STEEM stake, much of it much lower acquired even.
Anything else is staying away because of the vulture behavior on the platform.
Those are not investors. Anyone investing in new knows there won’t be any return for 2-5 years and when there’s a return it’s not from dividends or anything like that. It’s from selling equity in follow-on rounds rather than becoming diluted beyond imagination.
PS: I did predict that last September that this behavior won’t bring new investors.
Serious investors in BTC for example throw shitfits over even small changes to the code. I don't see how we're going to pull any serious investors given the very one-sided way that forks are pushed here, and the............. "murky" inception of the blockchain. Inflation wouldn't be such a big deal as it is now if there hadn't been the initial distribution that there was, or other periods of arbitrary superinflation. The economic model of a coin has to be sound, and if things are just changed on whims from one centralized entity then that's going to scare away anyone who likes steady, stable, and decentralized.
The one thing I'll say is that people that use steem do a, how should I put this, relatively good job of distributing steem and sbd to content, and we haven't quite hit the point of 100% roi chasing by vested stake. Most blockchains don't have cultures that encourage such behavior.
First thing required is that we stop calling those “serious investors” investors. Most of them have never invested and would never be welcome in an investing round either.
I’m not saying the latter is a good thing tho.
But, second, they all need to learn and accept that investing doesn’t mean that there is a guaranteed return. Even not when investing in teams. No, I don’t consider ICOs currently an investing use case for this argument. I’ve seen way too many “insight in a profitable portfolio” articles which all just relied on btc dominance and market run, rather than on insight.
So... investors will need to accept that a majority of their 2-3 years bets will fail. That is also why they need to aim 20-40, rather than short term 3-4x.
Because so many will fail that it is important that the one or two successes are huge.
It’s why investors gather in rounds, to share the risk and lower the cost of failure.
Not because they are used to throwing 300x $5,000 round in diff projects. $5,000 which they only had because of bull market btw. They did not get that $5k because of awesome insight and support.
The market is currently mostly still only traders and crypto angels who like to call themselves investors but have never previously invested.
That loud megaphone is what we are up against, I know. 😖
I get what you mean, and no, I don't think most large wallets are sophisticated investors.
Yeah, exchange manipulation, the whole tether+finex combo really made everyone feel like a trading genius there for a second, and it's starting to make everyone feel like a real dumbass by this point.
I mean serious investor as in entities with actual large amounts of money that actually do DD and their legal paperwork before stepping into the waters.