Why the extreme rise in STEEM will potentially backfire.
We all awoke today to a 2x worth of our Steemit accounts and it´s time to celebrate.
Yes, but it also leaves a bad taste - at least, if you think long term....
As I commented on @riseofth post here and @revisesociology post here I´m also skeptical about this enormous rise.
Both are making very valid points in their post, and I want to add some things, that concern me.
1. 2 x value of STEEM equals 2 x value of each upvote
We all here have to think twice, before we upvote anything. VP and scarcity go hand in hand.
I´m a total newbie here and I´m already struggling with keeping my voting power up, since there are way too many posts that I really "like". It goes completely against my normal use of social media, where I like and show my love A LOT. Here I can´t manage to keep my VP above 60% anyway, but with every vote now being doubled in value over night, this even got harder as ever before. It´s a psychological thing, which brings us to the next point:
2. Users will think twice, before they give you an upvote
So not only from the giving perspective, this concerns me, but also as a receiver of upvotes. When people think twice before giving you an upvote and hesitate to just like what they do like, the chances to get upvotes will decrease exponentially. Through this, the huge gamification part of Steemit becomes even more of a calculation and a question of mental constructs to increase ones own status.
3. Motivation of new users decreases
Receiving lesser upvotes leads to huge disappointment for new users. Most people are used to get a decent amount of likes on all other social media. Again psychology comes in here. Doesn´t matter if you are a full time content producer or just an average social media Joe, you are used to get a certain amount of instant feedback, that people have seen and recognized you.
If you get the impression, that you are speaking into the void, your motivation will decrease - that´s simply how it works.
4. The gap between the rich and the poor gets bigger
While the whales are not much influenced by this and more or less may just begin to cash out over the next weeks through powering down, the newbies (at least the ones - like me - who don´t quit easily) will most likely stay poor. This increases the gap between them and socially we know what happens, when things like this occur.....
5. Steemit becomes more and more an Elitist network
Besides the point of many newbies quitting right away, because they don´t get recognition, the whales and nearly-whales will stay, making Steemit some kind of elitist network, and certainly slow down it´s growth.
I don´t want to talk down the general excitement about the mooning Steem price and there are certainly other mechanics in place, that are totally positive and that you will read about here anyway over the next days. I just wanted to raise my doubts and concerns and I do hope of course, that none of them become a reality.
What do you think? Is the STEEM price mooning just a good thing?
I think Steem mooning at a steady pace would be good. If people get the perspective that the growth is still there, that's positive. If it goes up too quickly, most won't believe this will be possible in the long run.
True, but we can´t expect Steem to double its current price anytime soon (again and again) - so the exponential speed screams for a correction. On the other hand, through all these complex calculations it also doesn´t get easier - especially for newbies.
Hitting the upvote button suddenly became science! ;)))