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RE: In Bitcoin terms, Steem is revisiting the lows of March of this year and if it was to revert back to the Bitcoin valuation witnessed in June, then Steem could be +$10.36..!!
True but in the crypto world, it is.
Here is my reasoning:
I. SMTs...look at the move in ETH due mostly to ICOs. Steem now has that ability.
- Apps getting better and better....let DTube and Zappl work out their issues...you will see them grow quickly.
- Wall Street....over $1T coming into the crypto market in 2018....going to send most everything flying upward.
Is it certain that the SMTs will be good for the Steem price? Won't people just start to use them instead of Steem?
Short answer...no. A good analogy is ETH. On Ethereum numerous tokens have been created that fueled the price of ETH. The same will happen with Steem (hopefully).
I agree...I see the same thing happening to STEEM that happened to ETH.
The ICO market got ETH a ton of press and STEEM could get the same. Plus that is a ton of people being drawn onto this blockchain.
It is a wonderful time to be holding steem.
Hi @captaincanary
Thanks for the comment.
They could well use the new token which is great. The more tokens on the blockchain, the more bandwidth that is used. And bandwidth is priced in one thing...steem.
Hence if a site has a ton of activity on it, it will have to buy a lot of steem to keep up with the growth.
That is why the SMTs are so powerful....get 10-20 tokens with decent followings and you could be talking millions of followers all on the steem blockchain.
Oh ok so an SMT will have to be backed by Steem Power? For example if I wanted to start an SMT which had a total reward pool of $100 a day I would need to buy and hold an amount of Steem which could pay out that amount?
This answer is two fold.
To start a token, you would most likely buy STEEM to provide initial value to the token...a form of backing the token up. After a while, the creators of the token might sell the STEEM as the value of their token took hold...or the might not.
Regardless of what they did on the end, you as a token creator would need bandwidth. It really doesnt have to do with compensation. Look at your steemd.com/@username account and you will see bandwidth under your voting power. That is the system. All "fees: are determined by bandwidth. Hence if you had a million people active on your site posting, upcoting, and commenting, then you would need a fair bit of bandwidth, hence STEEM,
I hope that helps to clarify things....
Thanks you gave me an idea of a post.
Ok thanks a lot that certainly helped to clear things up a bit, I really need to look into this in more detail. I will follow you and look out for your post!