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RE: Why I Foresee Manna As A Core Currency Down The Road
Answering a question with a question:
What created the demand for any token?
Answering a question with a question:
What created the demand for any token?
It's very different, Bitcoin was initially the first created crypto and that's enough, many tokens have innovations in security, privacy, transaction time, fees, etc, etc ... or they are ICO's with innovative ideas that will be worth a fortune in the future. But if you have a token that is constantly being created, becoming inflationary, and also, it is given away, then I think it is very difficult to counter Manna's offer to make it rise in price.
Isnt STEEM constantly being created? Arent many of the tokens you mentioned constantly being created? Isnt Bitcoin still being created? Ethereum?
They are all being created...in fact most have an inflationary rate higher than Manna's 3.5%.....
Yes, but the problem is not inflation per se. But the creation through inflation and also its injection for free in the market, makes it very difficult to counteract that Manna offer. The people who buy Steem, it's because it helps them generate more money using this platform, it's a great investment in fact, because the greater the amount of SP, the greater your profits will be. In addition, the Steem created is distributed among those people who had to perform some actions (publish, comment, etc.) to win it. In this way it is not free, but it is traded by a few actions.
If there is no economic incentive to obtain it, and on the contrary, its circulating quantity is constantly increased, then a too great disparity is created between Manna's oversupply and its demand, so that the price will tend to fall.
That is mainly my problem with Manna, because I believe that people can be attracted to an idea like helping other people in the world, and I think it can be a really valuable experiment. But I see that it has an inability to increase its price, at least from my perspective.