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RE: STEEM Is Cryptocurrency 2.0: Here Is Why It Is A Huge Winner Long-Term
What is not clear to me is one thing: Yes nobody buys Steem in the market. So, are we left without payment? Does Steem have value only if there are people buying it? What would happen if Steem had no use for a person who is not part of Steemit? Would we only sell Steem to those who want to buy Steem to increase their Steem Power?
I wouldnt say nobody is buying up STEEM...there are over 60M tokens out there that are not in SP....and recent price actions says there is a lot of activity.
STEEM has a built in use in that it was designed to be reward for content creators. As long as people are creating content there will be a demand.
But you do bring up a good point, part of STEEM's evolution will need to be a place to spend it or, at a minimum, a conversion from STEEM to fiat.
I am sure we will see more of that coming in 2018.
Exactly, I'm not talking about at this time. But for example, if I want to buy something with my reward in Steemit, I change my Steem in an Exchange, and then that to Fiat. But what happens if nobody wants Steem in the Exchange? I mean that the Steem is sustainable for now because there is a lot of speculation in the Exchange, but when that does not happen. What will motivate someone to create content in Steemit if they can not later change their Steem to fiat money? In case that happened, would Steemit have to introduce advertising in the publications?
Actually the amount of money available on the exchange keeps decreasing....even though the amount of STEEM is increasing. That means the rate of STEEM bought up and put into SP is outpacing the amount of STEEM powered down.
As long as there are people on here blogging, STEEM will never go without buyers on the exchange because there is utility in the token. If the price drops far enough, myself and hundreds of others would be buying (perhaps thousands).
Plus we are getting new bloggers each day...a certain percentage of the newer people signing up over the next year are going to use some fiat to power up and increase their account.
STEEM has built in buyers, the one using the platform.
@taskmaster4450 . There are so few people with this kind of logic. Everyone should follow you and learn from you so they can talk common-sense. I will repeat a few important comments you just made:
As long as there are people on here blogging, STEEM will never go without buyers
there is utility in the token
If the price drops far enough, myself and hundreds of others would be buying
we are getting new bloggers each day
a certain percentage of the newer people signing up over the next year are going to use some fiat to power up
Thank you for the kind words. I believe that STEEM has so many things going for it that people are astonished. It appears that most really do not know what they are sitting upon...the power of the blockchain and some of the creative moves that were implemented when this was set up.
STEEM has a built in ecosystem for success....at this point, for those on here, it is already a raging success.....even if nothing changed, we would continue on just like we are. Organic growth is coming so that "keep it as is" is not possible.
STEEM will only move higher as the blockchain expands.
Definitely some newbies will use fiat to power up their account. That's what I have done. It's useful to have a lot of it. Steempower is to bloggers what lipstick is to ladies. It gets people to look at you or in the case of steem power, to read your blogs.
Simply put, it is another vanity asset.
Lipstick, perfume, a Rolex, a Lamborghini, or steem are desired because they
Interesting analogy and one that is accurate.
There is no doubt that SP (and the associated VP that goes along with it) gets one noticed.
It is also the engine that drives this ecosystem so there is a practical use along with the vanity. I keep powering up to add to my standing on this platform. That is what the system was designed to do...give more power to the people who contribute more. Of course, on a platform like this, said power is spread across the entire user base so it isnt as if one is in control.
That said, I know many who would pull out their fiat on a large pullback and power up more. This is the cycle of success which is almost guaranteed.
Yes, but that would not be a kind of ponzi scheme? since people need to buy, so that others can earn money to spend, the content creators depend on the existence of new writers who want to buy Steem.
Not if the content creators are the ones buying the tokens if nobody else is.
I can assure you, if STEEM dropped back to $1, I would be buying tons of it....as wold many other people on here.
The reward pool is set and will not deviate from the payout (in STEEM) established in the blockchain. Therefore, even if we didnt add one more user, this blockchain would keep going with the same 35K-40K posting, upvoting, and commenting.
And what would happen as each of us kept doing that...we earn more money.
You're right, but I do not think you understand what I'm trying to say. With the Steem you can not buy anything in the real world, you can not buy clothes, food or medicine, nor pay gasoline. That is, you need to change your Steem for fiat, and that fiat will be given to you by new users, or people who are already on the platform and want to buy. In both cases, the Steem would not be fulfilling a function that can not be replaced by fiat money, and the only ones that value it are those who want to write in Steemit for pleasure. Or am I wrong? that's my question, I see the Steem as a method to reward content creators. But unlike YouTube, for example, which pays in fiat money, and that creators can use it to buy products, the Steem must first be exchanged for fiat money
@vieira I am replying to your comment:
Receiving value does not have to be fiat. Your house, a gold bar, Apple shares, and a Van Gogh painting cannot buy a cup of coffee either.
All that matters is that someone thinks it is valuable and is willing to exchange it with you for something they think is less valuable. It does not have to be fiat. However if you lived in Zimbabwe, Venezueala on Nigeria, you would find plenty of people willing to swap their fiat for literally anything else, steem included.
People choose to measure their wealth in fiat, but when the fiat approaches worthless that is no longer a good way of keeping score.
The only mathematically correct way of keeping score is to find an asset which has a finite supply, like bitcoin, and measure your wealth in that.
(We are all so much poorer now than a year ago.)
touché! I live in Venezuela and have hit the nail on the head. I would be one of those people who would exchange their Venezuelan coins for Steem. But I was just clarifying that for now it is not possible to buy products directly with Steem, which I want to be possible, and that is why I think that in the future Steem needs to be negotiated in another place besides the Exchange.
Yes that is true..right now you have to exchange steem for fiat. But that is true for almost all cryptos including Bitcoin. Most places will not accept bitcoin for food, gas, or medicine.
So the question becomes, is the entire cryptocurrenciy sphere a ponzi scheme requiring newer people to enter to buy the crypto so people can buy stuff in fiat?
And by the way, be mindful that you cant use most fiat in most areas.
I cannot go to my local supermarket with a hand full of British Pounds and buy food. I have to convert it to USD at an exchange. Even those who swipe a credit card, their accounts are in pounds but the US company paid in dollars...so exchange has to take place.
We are very early in this game...that is why I draw the parallel to email in 1993 or 1994...people, at that time, had no idea what was on its way. The same is true now...this is just round 1.
Right, I totally agree with you. I think that if the cryptocurrencies succeed and revolutionize the financial system, many cryptocurrencies will generally remain and be used by us, then, the Steem, like others, will have to look for their position at that point. I do not believe that cryptocurrencies are a ponzi scheme, that is, there is a real utility that supports many of them, the issue is in itself achieve the objectives that are proposed. I also believe that we are in a phase in which we do not fully know what we are part of, in fact I wrote about it. For now, we have to enjoy Steemit, Steem and cryptocurrencies in general, and support the projects that come with them. However, I believe that in the future we will see changes with respect to Steem, it will have to adapt to a different market in the future.
@vieira it's important to know that crypto currency is slowly being accepted as payment in some store and I even know of a woman that pays her nanny with steem. So I think the more people get to know about steem and crypto currencies in general,the more it will be used as method of payment for both goods and services.
@taskmaster4450 . It looks like you have done some research into the holders of steem, what's in SP and what's floating in Steem. Did you publish it already? it will be a very interesting study for me to read. Also looking at the flows in and out of SP and what the conclusions could be.