RE: Steem-Engine Helping To Create Niche Based Social Platforms
I don't really think that is the case. Personally, between June and July i've bought more than 1000 Steem, this is the largest amount of Steem I've bought in such a short time and it saw my SP has grown from 1600 to 2250+. Yes, I've invested in the tribes but that's like less than 20% of the total Steem I bought and this is the situation for most of my friends.
My understanding of how the Steem-Engine DEX works is that the Steem you exchange remains in the Steem blockchain, It is not a situation that you sold Steem for Bitcoin, Litecoin or other altcoin.
So, in my own understanding, it is supposed to improve the price of Steem because people are buying bitcoin and other altcoins and then converting them to Steem. The Steem which is exchanged for other tokens are on the Steem blockchain which is also like tying down your token to the blockchain.
I'm glad to see that you're growing so fast @ketcom :)
It doesn't really make any sense to me. I cannot see how all steem-engine tokens prices would be gowing up/down (Depending on demand and supply) and it wouldn't affect price of STEEM.
But perhaps I'm wrong.
Cheers
Piotr
Thanks @crypto.piotr
I think the best way I can explain it is using an exchange for instance with bitcoin as the base crypto. People convert fiat to buy bitcoin and the use the bitcoin to exchange for altcoins. Now those altcoins are traded on the exchange, when sold they are converted to bitcoin and when they are bought bitcoin is converted to alcoins.
The key point is the the fiat remains in cryptocurrency.
In like manner, when users want tokens of the tribes a lot of them buy Steem, when they are traded on the Steem-Engine DEX Steem is the base crypto. The money isn't been converted to other cryptos outside of steem. And the more people want to grow on any of the Tribes the more they buy Steem which is converted to any of the tribes.
So in this case the fiat converted remains in the Steem blockchain.
It surely is confusing @ketcom :)
Thx for taking the time to explain it to me.
Cheers
Piotr