RE: Excess Supply : Killer of Steem , EOS, Bitshares and other top crypto currencies ?
I think each of the three you mention have different circumstances:
steem: Inflation is relatively high at 9.5%. But each year it is scheduled to decrease, with tale emission at 1%. So I don't think we can conclude too about 'too much supply'. Zcash for example has very high inflation but it's still been trending up. Moreover, steem absolutely needs some inflation (unlike bitcoin), for the payouts! The difficult question is what rate is best. But if steemit grows big I think there would surely be ways to generate profit too, even if that eventually means advertising. Facebook is free to use, but still generates great profits...because it can do this one way or another due to its network effect. Only difference with steem is that a high proportion of the payout goes directly to the content creators (which is the great innovation!) Anyway, I think it can sustain the inflation model easily provided it can accelerate its network effect (number of active users).
bitshares. Great tech., but I hold very little now (I used to hold a lot). Reason is that the shareholder gets very little / nothing out of holding. This could easily be fixed, but problem is that the original developer left and also due to the voting system. Not sure it can be fixed easily once the stakeholding proportions get stuck, and the devs have sold most of their stake to pay for development....this is why POW has advantages of POS in this regard. Logical thing for devs to do is leave and start a new project as @dan did (haha..). The way the issue could have been fixed would have been continued development and having tech where BTS holders get a share of the revenue....look at Lisk, Waves, Dash, Nem for examples where it pays to hold the tokens.
eos: this is a special case currently due to the ico schedule. This will constantly act as 'damping force' on price until we get nearer the end of the crowd sale period. When we do get nearer the end, I think the price could rocket up, if the tech can deliver what it promises. And unlike bitshares, there should be great value in holding the tokens as it should real value, because dapps will require it to get keep their smart contracts running.
An excellent response from you, thanks for sending in your thoughts hence why I missed your posts with its constructive analysis 😂😂😂😂😂 . Without going into the details, my point was to outline why and how too much supply can negetively affect price , as you can see these coins prices whould be higher than their current prices if there is a bit less supply, however I agree with your analysis and I am sure that prices will increase with time due to the quaities of the platforms. Hope you like the Lamborghini Veneno ... lets hope for 1K steem price by 2 years time and you get one ..hahaa
Hehe, thanks.
But for that, steemit would really need to figure out a way to onboard users more quickly and I guess require less delegated stake (or they'll probably run out..) Because there's a close relationship in social networks between numbers of users and market cap....ballpark $100 per user for Facebook etc. And actually, in this regard steemit is currently way over-valued 😯
Anyway, crypto is crazy...many cryptos have valuations in millions even if there's no rational value proposition!
A different way is to compare to other cryptocurrency market caps. In this regard I think steem is very undervalued, although the low trading volume is a negative in this regard.
Anyway, I think a 10x increase in valuation would not be out of the question based on this. And I would be very happy with this😂
Good point I agree with your analysis 😂 . However as indicated, if steemit picks up and reaches mainstream with millions of users, say in 3 to 5 year time it will surely be a household name and there is nothing that will hold steem price to 100 even 1K USD -however as indicated in my last post, there are still work to be done by all. I never underestimate the power of crowd (Face book et al for example) and yes , there should be strategic advertisement here in order to get external revenue-this will change the playing field in our favors isnit it ?
I'm not a fan of advertising and actually would not like steemit so much! I was thinking more that once they can't grow user numbers any more, they might have to consider it...haha, long way off😂
But the great thing about steem is it is decentralised. It's entirely up to steemit how they want to run their website; similarly 'esteem', or any other enterprise that wishes to leverage the steem blockchain as part of its functionality😀
Edit: I would not mind a banner advert too much, but would really get put off with a you-tube wait 3 seconds before you can view anything! Lol ;)
Good point,haha however tell Facebook or google that you do not like adds haha. If steemit will implement adds, then the platform should do it prudently...maybe allowing top firms to get account and advertise their products via those who follow them and in trending pages and tags after paying high price. All firms need huge external revenue for viability especially social media platforms-I think that it will be great for steemit , however it should be done prudently and members who have
steem power will get millions in revenue hiyaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa😀😂
With that conviction, you should buy some/more!😜😄
😀😂 absolutely, gradually and steady!!!! I am chasing you hiyaaaaaaaaaaaaaaaaa
Looooooool
I agree that the decentralized aspect is one of the most important factors. I do not have any long term confidence in centralized cryptos even if they are currently doing well.
I am sure that there will be a lot of centralized cryptos especially once the global elite get more involved in this budding economy...
hhahahha so true "crypto is crazy"
Doesn't matter how smart you are or what the situation looks like now, as you said CRYPTO IS CRAZY and can change in a poof.
Its an exciting, potentially very lucrative and also dangerous game!
Great comments as usual @xaero1
That was an excellent comment,@xaero1, You have nailed it.
And thanks to @charles1 too for bringing up the subject.
I have upvoted and followed both of you.
I would like to add some comments:
1- The price of steem is particularly important. Higher prices mean higher value for payouts and hence higher attraction to talented content creators. So, the thriving of the platform itself depends on the value of steem. Other projects would not be affected that much by the price of their tokens. So, we (steemians) must care about the price of steem.
2- The amount of supply by itself is not important. What is important is supply compared to demand. Now, what would create demand for steem? This the subject that we (the community and the team) need to consider and pay attention to.
3- I am a little bit alarmed by the way @dan is abandoning a project after the other, leaving them incomplete. I believe that it would be better to complete your work in a project before you go to the next one. IMO, both Steem and Bitshares had much higher potentials if they received the needed nurturing from their parents.
In fact, these worries are what is stopping me from investing in EOS. I am afraid that he would leave the project before it matures.
Finally, a question to @xaero1: You mentioned in your profile that you are SP investor. Can you please tell me how do you invest?
Thanks for your reply. Great comment!
I'm not an investor in the true sense, because that would probably mean in an actual company like steemit! All I mean is don't trade it, I.e., and in fact it isn't possible to trade if you are powered up!
Really I mean that I mostly trade crypto currency like BTC , ETH, as my work! To try to make money :) However, steem power is the main holding I have which I can't trade, hence I view it as an investment! I'll be holding it whether the price goes up or down (even to zero ;) )....so, either I get a nice capital appreciation if the project is successful, or I go down with the ship, if it sinks!😂This is what I mean by 'investor' as opposed to trader😀
Yes, I get it now. But, why do you choose to do that? You must think that the odds of success are much more than the odds of failure.
Exactly... I think the platform is pretty unique, and could be a good investment. But it requires continued growth in user numbers. Will be interesting to see if it works out!
Its people like you that will make this community successful. If we had more investors like you Steemit would be FAR more successful. I hope you inspire others to commit and contribute such as your self!
SteemON!
Thanks!😃
In addtion to my last comment , am impressed on your great posts and comments hence why I referenced you in my latest post -check it out and more success bud
Hmmm I think that your latest profile photo will scare the shit out of them F4F and pls upvote ladies due to its red background !!!! what was your motivation?hahaa
That interesting post @charles1
upvote and follow you now :) , nice to meet you
The creator of these 3 projects is Dan Larimer. I see nothing but success on all of these projects. EOS alone raised 300 Mil on its ICO, it has been the highest ICO to date.
True on EOS, but @dan did leave bitshares, and he's mostly left steemit too - if I understand correctly!
Good point, I agree. However only one man does not create a great company...rather the invisible teams behind the project.
I was going to ask the author why he didn't give us thoughts on EOS, ......but you did. Look I am not no rocket scientist but everything I have read about EOS, from their VC"s, to the amount of ethereum EOS project developers hold and their developers (The developer of steem). It all makes sense! I have no doubt their technology will work, It worked for Steemit, why doubt Dan now? I will be more shocked if the technology didn't work. To me EOS is a no brainer even for the novice of cryptocurrency enthusiasts. The price should and will skyrocket for EOS! That's A Gurantee!!!!!!