Crypto Economy: The Buy Back

in cryptocurrency •  2 months ago

Hey people of steem,

So yesterday I wrote a post about crypto and why it is a great way to both monetize any site and engage your audience without taking away from other forms of making money. Here is the link:

https://steemit.com/cryptocurrency/@whatageek/cryptocurrency-is-a-new-way-to-monetize-that-does-not-take-away-from-the-old

But today I want to talk about buy back. Buying back is when a site buys a coin that they utilize on their site or app and then burns it to lower the total supply. This is turn will increase the price of the coin and since they are buying the coin on the market will also increase buy demand. If a site is using other means to monetize it can spend a percentage of those funds to keep buying its coin. This closes the loop of the ecosystem and if the site stays in business could perpetually increase the value of a coin.

The higher the value of the coin the more interest people might be in a site. Take steemit for example. There are a lot of people on here even when the coin is at lows but it gets crazy when the market goes up. This in turn would raise the business of the other models of revenue and increase the buy back.

For steemit there is no buy back at this time. The reaosn being the site is free to use. Which I do not want to see change but maybe we can have ads that do not get in the way or a premium service to bring in money to start a buy back system. This could go a long way with the price and additional funds could go to advertising.

What do you think?

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I never thought about that but what a great idea! I guess that would really help the price of steem, plus there can be ways to have ads that are integrated seamlessly that aren't annoying or in your face. Similar to the way instagram does their ads.

Very interesting indeed!!

Bro why your cpc are very High

Some have taken it upon themselves to do this sort of thing, at least to a small degree. See https://steemit.com/@burnpost

But I wouldn't mind unobtrusive ads. Maybe even ones you could opt out of (i.e. you could chose whether the appear on your posts or not). Provided that the funds were going to purchase and burn steem of course.

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This is going to be rigorous for steemit as a result of it's decentralized style and system however buying back the coin in other to create valuablity and wantability is quite genius, infact it could make steemit very huge if it can definitely be pulled off, but it's going to have to mean restructuring the website itself and it's a very huge step I don't know how it might appeal to investors but well Ad introductions is also very good, it won't be too difficult to integrate that.

According to the my knowledge this isn't good time for buying cripto.

Powering up steem actually does the same thing and lowers the amount of steem actually in circulation.

I've always maintained that we do need external sources of revenue to add value to the site. I think it would be massive for the blockchain if there was ad revenue coming in. With the incoming SMT's it is something that i would hope to see added onto the site.
@timcliff has been posting about trying to raise the profile of the blockchain and attract investment but i think that having a revenue model would be a lot more appealing to investors than any marketing campaign.

Imagine an SMT that is based on ad revenue and distributed out to all steem holders.

This is where i would like to see the site going to. People using the site, seeing the advertisements. Advertisement money funding an SMT. SMT distributed to people who have been targeted by the the ads. Nothing too obtrusive but a little could go a long way. Now who wouldn't want to hold SP when you will be earning money directly from it.

Investors see a growing user base and ad revenue coming in, along with new apps and blockchain development and whats not to love. They win, we win and with hardfork 20 being successful a whole new group of users joining in their droves and adding to the site.

I do think that we need a social media app on the blockchain, something like early Facebook to really attract a new audience in large numbers but i am sure that somebody will add that before too long. Steemit is great and when you add in steepshot, dtube, dlive and all the rest we are making huge progress but we are still missing the social app.

I had never thought about burning steem tokens but i can see how that would add value to existing tokens, especially if there was a higher demand for them. However if our user base does grow over the next couple of years then it would hardly be necessary as there will be a big demand for steem tokens anyway as people will be gaining a lot of benefits and SMT's from holding SP.

Just my thoughts on the matter.

thanks for sharing this news

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The cryptomarket is being made base on especulation wave. How I read this is time to hear, read, and wait.
Good post!!!
👍👍👍

Makes sense, sounds similar to Buy Back on Equities. Thanks for sharing @whatageek :)