My Thoughts On Steemit's Smart Media Contract Announcement
I was just telling a friend two days ago how there are so many ways to make money within the STEEM ecosystem and how it makes so much sense. Then just yesterday I made a comment on one of @stackin 's posts that STEEM is such a safer investment now then it was a year ago because of the improvements and the community is so much stronger now. Then today I see the announcement about STEEM having Smart Media Contracts.
If you haven't heard about it yet basically other content platforms will be able to roll out their own tokens on the STEEM blockchain so that their user bases can get paid for community engagement just like we do here on Steemit!
Check out the White Paper if you haven't already.
https://smt.steem.io/
My Thoughts On Ethereum ICO's Compared To This
For the most part I haven't liked the ICO scene because a large majority of them look like pretty clear scams. On a weekly basis I have friends contacting me asking what I think about certain ICOs. I'm pretty technical and have a Computer Information Systems degree. I will study the ICO and be like WTF???? "This makes no sense what so every." It is literally like someone just wrote something that sounds technical so that non-technical people will be fooled.
Most of them just seem to be tech startups with a flashy website just trying to gain funds fast. Most of them are all hype.
Also most of them are claiming they are going to do something that is beyond the capabilities of Ethereum. Then let's pretend it is plausible what they are claiming. How long are you going to have to wait until there is a working product? Months, Years, Several Millennia
STEEM is a working system today capable of far more transactions / second then Ethereum. It has a working use case and when companies decide to do the Smart Media Contracts they will be immediately able to use the system to promote user engagement.
The Value Of STEEM
Value can be associated to several things. Something becomes valuable if it has utility. Well we know STEEM takes the friction out of transactions and tipping by working the transaction fees and tipping into the inflation model. It is a brilliant way to mask it and propels the usability of it way up. Also overtime the supply will become more restricted as less coins will be released. This has worked well for gold and silver as well as new asset classes such as crypto currencies.
Websites and platforms become more valuable when they have large user bases and lots of traffic. Ultimately as all these different utilities get built out on the STEEM blockchain like Steemit.com, Busy.org, ChainBB, DTube.video, Steepshot, Zappl and other utilities it drives more and more combined traffic and attention that someone would want to invest in. Instead of buying shares they buy STEEM!
Potential For Investors
With so many ways to make money with STEEM it makes sense for people to have it in their crypto portfolio one way or another. People that have been here a few months and understand the economic system realize that this platform has unbridled potential. Personally I feel that the Smart Media Contract announcement just increased the potential that STEEM will full reach it's potential!
Conclusion
No other blockhain social media project is even close to what STEEM has going on and now as far as plaforms (Ethereum, Lisk, NEO, EOS) it has a big jump on them and will service a more niche market. Ethereum literally would have to scale way beyond where it is to reach the utility of STEEM. Hopefully others will take another look at STEEM and realize that this is the real deal. Also STEEM has a jump on the other platforms. Six months is an eternity in crypto and STEEM could end up with a multi year jump!
Exciting times!
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I am still cautiously optimistic about the new announcement. I have yet to see anybody with some credentials talking about wethere these ICOs and ERC20 tokens are considered securities.
Many regulatory agencies have already issued warning statements on ICOs, so I'm not sure were these Smart Media Contracts fit into the regulatory landscape.
It is a good question. Initially I would have said no it isn't a security but then now that I think a little more about it it brings up a good question to be honest. But even if it is considered a security in the United States and can't happen in China there is a lot of potential still in other parts of the world for it to increase demand of STEEM. And let's say it is determined to be a security. Well people in the United States won't be able to invest right away but what will stop them from getting on a sub reddit let's say and start earning tokens from commenting like they do on here?
I think we will be able to get past it and people will still have the opportunity to be apart of it.
Maybe these SMTs will gain more adoption in other jurisdictions with less burdensome regulations.
The other issue is that every fraudster and scammer is now going to start using these SMTs, which, correct me if I'm wrong, will also have an impact on the Steemit blockchain itself, no? Just look at all the scammy ICOs on Ethereum.
Also, aren't all these SMTs going to bloat to blockchain to some degree?
I get your worry about the scammers. I thought about that and I think it will be less of a burden on STEEM price then it will ultimately be on Ethereum because the way it should be setup is that once a person buys into the system they should quickly have power and influence on whatever platform is selling the token verses a situation on Ethereum where nothing actually works or does anything and it isn't really a working system.
Plus with these token sales on Ethereum they are selling the Ether overtime to fund development or personal lambos or whatever but it would make sense that the people implementing this system would already have a user base on an existing platform.
I'm sure there will be scammers pitching that they are going to build a platform and it will have supposed features but I don't think that situation will be as bad on here as on Ethereum. It is a little more straight forward the niche that this platform and tokens would be geared toward. That is the hope anyways.
Plus I'm wondering if the person who runs the ICO or whatever would automatically get all the STEEM or if the STEEM get's locked in the system for the issuance of the token and then maybe the people who originate the token sale get a certain percentage of the tokens so that they have power in their own system.
I'm going to have to dive into the white paper more.
Exactly! I am a US Citizen and it hasn't scared me off. There is always a backdoor to everything. Me I just walk right through the front door and feel I belong here.
It seems that the flashier the website, the greater the risk that the ico is a scam.
There is a huge... chasm between a person who has a great idea and the technical expertise to make the back end work, and someone who is a great marketing / copywriter.
The first has almost no clue how to make a presentation, white paper, web site. And the later has no idea how to make a real product.
In our world, the marketing person seems to get all of the attention. And, that is probably normal, because if you don't understand the technical stuff, then you are just down to how well the site makes you feel.
The sad part is that if you get a marketing person to work with the tech person, the marketing person will take over. Because, they have so much more Emotional Intelligence. However, they are the last person who should take over, because they are nothing without the actual product. And no matter how hard they try, they can never make the product.
Yeah it is very true. Once in awhile you get someone who somewhat possesses both of those abilities but it is rare. Someone perhaps like a Bill Gates or an Elon Musk. I'm not sure how much technical stuff Elon is doing these days but he is certainly smart and can inspire people.
The ICO scam stuff is really bad and it pisses me off to see some of the money that things are bringing in. It is like people are more willing to take a complete gamble on something that really has nothing to show for it instead of investing in something like STEEM that is a real live functioning system.
Hopefully the system can eventually overcome a lot of the negative feelings toward it that many had from a year ago. I think it will eventually get past that.
Thanks @brianphobos this post will be very encouraging to all who take the time to read! Resteeming!
Well, not everyone but even the skeptics are still sticking around..lol
Thank you! Yeah the skeptics know there is something here and they stick around and figure things could keep improving which they do!
Yes they do and more goodies just keep coming!
Brace yourselves, next stop...the moon!
I already have my helmet and harness on!
I feel we are going to miss the moon.
As the last stage kicks in, we will find that we don't have a rocket motor, we have some kind of warp drive... and with a sudden surge of speed, we miss the moon.
lol
Hey, why stop at the moon? There is a whole expansive universe out there. Before you know it, we will have more aliens on here than humans. lol
Exciting times. I've been waiting a while for an announcement like this.
Imagine if something like Youtube, Reddit decided to investigate this!
That would be unbelievable and would make a lot of sense. Buy into the competition before they potentially get big enough to eat your lunch!
This is going to kill Steem(it) in China. I give it a week before Steem is illegal to buy, trade, or use, in China. There goes a bunch of the user base....
Possible good news: Fewer bots?
I don't think it will be illegal to use but it could end up being. For instance in China you can't access Facebook unless you go through a VPN. Right now Steemit is probably under their radar.
I'm personally not worried about China despite them having a huge population. There is plenty of adoption growth in other parts of the world for STEEM to have great success.
Steem on Phobos!
I hope you are right😎