Steemit Cease Fire: One Week Without Dumping Every Single Steem Token You Power Down?
Just a wild thought -- could we get just one week where everyone could simply stop selling every single STEEM they get from powering down?
Ya know... just to see what happens?
I feel like I'm asking for a cease fire so we can get some bottled water and sacks of rice in the middle of a bombed out city right now.
I get the argument of 'driving price down to attract more investors', theoretically. I also theoretically get the attraction to a Communist utopia.
But in practice and application, I fear there will be few interested market entrants if the community is convinced that powering down and selling every STEEM token for BTC is in their own personal best interests and (simultaneously) in the best interests of the long term value of the ecosystem.
So how about it? Just one week 'Steemit Cease Fire' to see what happens?
The big investors won't even use the Convert to Steem feature that burns steem dollars during the conversion, I doubt they will stop cashing out for a second.
The amount of steem dollars burned could be a badge of honor better than the reputation score, but I see no one bragging about it or any effort to promote it.
It would be nice. I've never powered down and have the goal of not powering down until/if the market cap exceeds $1 billion. We need about 10 times the user base for that. But we are still just in beta ;).
Ive never powered down eigther! I think i need to open a bitcoin account or something first, im thinking its quite a process! But i have no idea!
Ha! Ya there are various ways. You can create a Poloniex.com account and then you can find your Poloniex Steem deposit address and then transfer from here to there. Then sell them for Bitcoin on Poloniex..then sell for dollars there or elsewhere lol. Not encouraging you to sell! :p
Wow! That sounds like 4 or 5 hoops to jump through! There must be a shorter or easier way?! I only use a tablet, and dont know much about computers! Can this even be done on a tablet?! Im slowly learning on my own! Lol! Thanks for the reply and info! 👌😉👌
I will make the case for the opposite. While the short-term price fall sucks at the time, I believe it is actually healthy for the ecosystem. There are a lot of people that do not like how the founders + early adopters hold all the power. If they keep dumping their Steem at lower and lower prices, it will give the rest of the community the opportunity to catch up. As long as the price rebounds eventually, then a short-term dip will not really matter in the long term. I believe that it will once more features are added to the website, so that we can improve the user experience, and we give investors more reason to hold SP (like the attention economy based advertisements @ned has been talking about).
I've never powered down. I want to keep my VESTs, but I fear the market has dropped so quickly those who cashed out may be able to buy up more VESTs than I because the price will be so low.
ditto.
Everything I get I power up.
I guess for some whales that would be exactly The Plan )
And that's why they are whales in the first instance )
My personal strategy with STEEM is to go against the tide. So when I see that people have stopped powering down and the market has reversed, that's when I will probably start to power down. That wouldn't be the only factor; the price needs to be bounce back high enough to make powering down of interest to me. But for now, I'll let everyone around me power down and continue to keep and grow my VESTs. I know the Steemit team is in it for the long haul and I think they have a solid vision. They could really use a PR manager though.
memegenerator.net
Keeping Steem in the system is irrelevant to its price. As long as we continue printing Steem, its price will continue falling (the increasing price of Bitcoin doesn't help either).
Yesterday, I've outlined the reasons behind the falling price of Steem. It's a short article, which will explain a lot of what's going on at the moment and the currency's future: https://steemit.com/steem/@dek/summarized-explanation-for-the-falling-price-of-steem
Yeah, good post, I upped yesterday.
I think an initial inflation of creating currency, then advertising, then removing the inflationary aspect and letting the advertising and other aspects, or some different type of pool mechanism, to pay for post content in some capacity. The tip option that mirrors real free market exchange is going to be the way for people to generate income based on people tipping them for their valuable content. The pool and this inflation mechanism needs to be removed long term.
The community needs to understand more about how free market reality works and try to get Steemit to align itself more with that reality. I don't see investing as worthwhile until this is confirmed to be something that will be changed. Otherwise, the price will just keep going down since why would anyone buy the cryptocoin when more and more of it just comes out... I hope to see real exchange from the community to take place and override the pool feature in the long term.
Advertising is a good place to start. I don't know what else can be done... but constant inflation forever... just does not add up as a successful enterprise. Maybe at least peg the "printing" of the currency to the amount of posts made, or upvotes cast, or something that is reflective of the a reality in the community, as a national currency is supposed to work as well. Then it would fluctuate as a representation of activity, usability and popularity of the platform, and then reflect an increase in popularity of the currency.
I am no economic expert, but I don't think the current system is inherently flawed. It actually seems quite well designed to me. It absolutely strongly favors the holding of SP as intended.
I think the problem is how we seem to instantly think in terms of monetary value, viewing steem as a currency, when the vesting system really sets it up more as shares of an enterprise. If a stock splits 3-1 it's not considered to have undergone 300% inflation. The climbing amount of steem is more akin to a continuous controlled stock split I feel. With a vast majority (I think the white paper says 90%, though I don't recall) of new steem being paid out to SP and SD holders, the inflation rate is drastically lower than it appears. SP basically has an insane interest rate that is counteracting the "inflation." The value of steem could actually fall forever, and as long as it did not exceed the rate of new steem produced, the market cap would remain unchanged, and that's the real value to watch.
Participation in the platform is what mitigates the the effects of the inflation as rewards are earned. Those who will be most negatively impacted by inflation will actually be the passive investors who simply buy steem but do not participate, as well as those with holdings in liquid steem.
Back to the stock analogy, no one is losing any value until they lock those losses in by selling. The vesting system really seems to be a far different beast than bitcoin, which functions much more akin to a true currency.
I see it any other asset really, there will always be those without vision who will bail on the first leg up. Other will hold for the second leg up. Still others will sit and whine about it and never get onboard at all, certain they are right and everyone else is a fool....
Then there are the investors, buying all the way down and hanging on for dear life. We won't sell till we see $10.00 per Steem, mayby even $100,00 per Steem.
Then we see a whole new environment as the whales are likely still whales but they are not alone... Minnows have a clear path to Dolphinhood, and investors and coming aboard for the shear growth opportunity.
It will happen, but it will be a wild ride and may even be on another blockchain...
Question for my fellow never cashed out citizens. What do you do with your SBDs? Do you keep it or convert to steem?
The interest on $D is really nice, so I'd hold onto it if I were you. It depends if you're happy with your SP position or if you want more, really. Any SD I get from here on out will go into my Savings.
SBDs shield you from losses, but if you're holding them and the price of Steem skyrockets, you'll lose those gains as your SBDs convert to less and less Steem. SBD may have a decent interest rate, but they're completely defensive. The only reason I can see for SBD right now is for those trying to time the market and buy Steem at it's lowest, but I'm not much of a trader!
The growth in vested SP will be the only way to reap profits if the platform grows. Liquid Steem should really only be held briefly between transactions. It doesn't defend against price drops and gets the most negatively impacted by the growth of available Steem, as it doesn't earn rewards to counteract that inflation. I'm just slowly building my SP with no intentions of cashing out for several years, in hopes the platform value grows and will lead to a real financial impact on my business.
I say hold off until it goes bellow $0.10 or gets to $0.05, then, buy buy buy and to the moon it goes!