RE: Creating Capital Gains with Appropriate Incentives vs. Discouraging Capital Gains by Profiteering: A Proposal
Regards, dear friend, @valued-customer.
How about concentrating on the quarters?
Start Q4 2018. The value of the STEEM was 0.8 usd approx.
End of Q4 2018. The value of STEEM is 0.2 usd approx.
What happened?
Certainly this bearish phenomenon affected almost all the cryptocurrency market, but what happened with steem, because it has cost so much to recover?
Just this low price caused the massive abandonment of accounts that were active producing material and receiving rewards that helped the distribution of capital and maintaining the inflationary balance of the blockchain steem policy.
Then we would need new accounts, new users.
I do not know the volume of new accounts created this year, but we would have to know the real activity of these accounts.
The truth is that the new game Dapps, are capturing the largest flow of active users.
Maybe this will help maintain the economy, but then the creation of original content would be lost.
I apologize if my comment is out of place. I would like to know if my approach is wrong.
Thank you for sharing this valuable information.
All best, Piotr.
Your comment is quite relevant to the issue at hand. The complexity of the factors involved in price of Steem in the evolving market preclude my possession of precise understanding, and beyond basic principles, I don't attempt it.
It is basic principles I do attempt to address in my OP. Including incentives to seek ROI by effecting improvements that in turn drive capital gains is a trait that Steem should obviously incorporate, and the extraction of rewards without driving capital gains is what Steem creates incentive to do instead. All kinds of rhetoric, including that from profiteers that would prefer to continue their parasitic extraction of funds without additional expense, has been forthcoming, but none of it actually acknowledges this basic principle, and therefore will not improve the situation regarding Steem's performance or generation of capital gains for investors.
This reflects that actual experienced investors are scarce as hen's teeth on Steem, and those that ninjamined the initial stake prior to Steemit being introduced have other skills, primarily mathematics heavy programming and technical computer development. Absent experience imbuing an investment vehicle with value to produce capital gains in real markets, the skills brought to bear by extant stakeholders seem to have developed the rudimentary grasp of extractive profiteering that seems to dominate Steem presently. Sadly, the consequences of such policies will only produce experience after mistakes are made, and the consequences eventuate, unless those folks educate themselves on investing practices, which is why I seek to promote that.
Losing users that are here is extremely expensive, as gaining new users is orders of magnitude more difficult than keeping those that have already shown such interest and undertaken the effort to sign up. Again, folks inexperienced in business just don't know that. Games may be more suitable a use case for their purposes, as the complexities of the social dynamics underlying social media are not known expertise of computer enthusiasts in general. This tends to prevent conservation of users and the pressure they put on price to create capital gains, exacerbating Steem's underperformance.
Social media is difficult to grasp the import of, particularly for folks whose expertise in technical matters, rather than social dynamics. I note the far more transformative potential of social media, and financial rewards that makes possible, than gaming. This is probably far less apparent to computer enthusiasts, whose personal interests are contrary to that reality. They are thus acting per their interests and skillsets, and creating a platform that avoids the most beneficial potential for capital gains in the real world, rather than the virtual.
Thanks!
Dear @valued-customer
I would like to thank you for your time and effort. Amazing comment buddy. Appreciate it a lot.
Yours
Piotr