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RE: Why All Should Consider Buying Some STEEM

in #palnet5 years ago

Unfortunately, you neglect that the rewards mechanism coded into Steem encourages extraction of the resources necessary to increase the value of the investment vehicle by financial manipulations. Profiteering reduces the ability of the platform to increase the value of Steem, and this is evident from the history of Steem price, and market cap.

Investors intent on capital gains are not fools, and see this is a platform that was built with profiteering in mind from the outset. Actual investors have no interest in platforms/businesses that cannot built equity and create capital gains. EIP is simply going to make profiteering more profitable, and further erode the value of Steem. Even attracting new profiteers to invest in Steem is impossible since the extant whales extract ~90% of the value of Steem before it can increase the price of the investment vehicle, and they cannot expect to compete with established parties with reasonable ROI potential, since it would take an enormous investment of capital today to extract a nominal percentage of the inflation/rewards pool.

Until Steem restricts the ability of stake to rape the pool, capital gains will remain unavailable. Capital gains is the basis for investment. Extracting working capital is the opposite. This is the reality of Steem today.

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