Reasons why STEEM won't make you rich
After the cyber attack of today some people start to realize that maybe Steem is not "The most brilliant and super mega amazing Cryptocurrency in history". Is not only about security but also is about that we are already in a bubble. Many people have invested lot of $ even when they don't know how Steem works.
I'm not demonazing Steem, I think it is an interesting project and maybe after some time and after improving the plataform, security... it can be a solid project, but come on! in 2 days has been established as the third most important cryptocurrency just because people lose their minds because they think they are gonna be rich investing here, but I have to say that these people most probably are wrong.
There are also more problems with Steem:
How can this thing be workable long-term?
They will have to "print" more and more steems to pay off all the new user's content, there will be new contents everyday and more users everyday.And on top of that they will have to print more steems to pay all the steem power users How can the currency retain its value in the long run? I understand the steem power system where funds are locked so they can't be sold but this is bandaid solution to an hyper inflation system
The payouts are so ginormous now only because the market cap is up.
Basically the more users on the site the less reward for everyone, so how is any of this sustainable long term? it should be the exact opposite.
In the long run, we are all dead, and nothing is sustainable, look at Reddit, LOL.
Indeed, and steemit is an elaborate ponzi. Better get in and out before everyone else.
It is not sustainable. It is like a drug. You get all this money but the money will stop. Then no one will use it.
how about this, the more people use it , the more the coin is worth , so the less coin that will have to be paid:
Example
july 16 1 steem = 0.005 btc
dec 16 1 steem = 0.05 btc
how much will i have to pay(in steem) my 1million users in july vs my 1 billion user in dec?
1 billion? let's be reallistic
lol yess
I wouldn't doubt it.
Ignoring the impact of Steem Dollars for a minute, Steem inflation is fixed at 100% per year. However, 90 percent of that inflation goes to holders of Steem Power. So, real inflation is only 10%.
That inflation is only experienced by Steem Power holders if/when Steem token value grows by less than 10 percent per year. If it grows by more than 10% per year, then they experience no economic loss from inflation (when measured in absolute dollar terms).
Regarding paying future users, this should not be a problem. Either future users never come, in which case the current Steem value (or perhaps some lower value) gets distributed among a limited number of posters, in which case there is plenty of value to go around to incentive continued posting.
Or, the new users do come, in which case each one will want to be as "influential" as possible. They have no influence without Steem Power. They have no Steem Power without Steem. So, more users equal more demand for Steem Power and Steem, which means a higher price, which means there's still plenty of economic value (in dollar terms) to incentive continued posting and curating.
In short, the system self-adjusts. Fewer users equal smaller dollar value distributed among them. More users equals more dollar value distributed among them.
100% inflation is 100% inflation where the money goes is irrelevant.
This is not true. For instance, if a stock does a 2 for 1 stock split, there has been 100 percent inflation, but all that inflated value inured to the benefit of the original stockholders. So, those stockholders were not harmed. In fact, they actually benefit from the split (which is why they approved it). So, it entirely matters "where the money goes" when it is inflated.
The only way it would not be inflation is if the value of the market cap also doubled meaning each individual unit maintained its purchasing power.
Perhaps this is technically true, but it's practically false. Yes, each unit can purchase less, but each Steem Power holder now has nearly twice as many units. So, unlike with fiat inflation (which steals from savers), Steem inflation actually insulates savers (Steem holders) mostly.
Its not about how much wealth someone owns but what can be bought with a single unit. You may not suffer under the inflation but it is still inflation.
real inflation will not be 10% when people decide to cash out. It would be way more than that. And even worse, there is no guarantee that anyone will be buying steem because they will not have reasons to do so. Especially when most people here are for earning steem by posting.
or have some faith and create some good stuff instead of being a hater.
Why when someone is realistic you have to call him a hater right away? He has some good points too.
Scarcity is not a problem in crypto. We have enough decimal places.
Its like a ponzi scheme with the difference, steem makes sure you cant withdraw your money for 2 years effectively, so its like a pyramid that you cant take your money out of. Initial users/investors have the most benefit, in the long term new users(if they come) wont make much money at all and will leave or not be active. Its an interesting concept and a different take on the pyramid scheme, one with rules that make the pyramid bigger. Everyone in on it already stands to gain i believe
This one might just be worth the risk as for early investors the reward is far greater than the risk
We are most definitely in a bubble but how long it lasts and how far it goes, nobody knows. I definitely think downside is a very possible risk and people new to crypto will get burned eventually when the trend changes. I also really think SteemIt is a cool platform but I think it's crazy to put your life savings into something that has already shot up to the moon. Just look at Bitcoin's bubbles to get an idea of how this always plays out.
There are many moons in the universe. "To the moon" is subjective. Then again, what If you are absolutely correct.
This current pullback in price atm is probably the first "bear trap" and the next level up is likely around the corner. I'd define this as a bubble because of the 2700% increase in the space of a few days. Doesn't mean it won't go more up. I'd actually guess price is going up after this dip. Just be careful because there is a looooong way down when there is a return to the mean.
if you think about it 3.00usd to .50 cents is not a long way down. ive seen worse in the crypto space. (maybe you have)
It is more likely for the price to correct downwards than to maintain an upwards push. in the short term.
Well written
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