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RE: STEEM As Money? STEEM Has Something No Other Cryptocurrency Has....
That's a valid point.. but consider this... your Steemit account is where you keep the bulk of your money.. every day you earn SBD from your posts... transfer that money to a "hot wallet" and you now have liquid currency... yes it can be hacked and stolen. But the biggest part of your investment is safe in STEEM power...
I agree @davedickeyyall.
If you compared STEEM to fiat, most people do not walk around with all their money in cash in a wallet....most of it is in a bank and often transacted out to pay bills.
Incidental purchases (coffee, Big Mac, rolling papers) end up on credit/debit cards...there is no reason why we might not see similar cards in the future...perhaps tied to steem.
Yes, of course. But the automatization of this process (you pay today with your SDB because I am sure they will arrive in 3 days) means that you have to wait 3 days, then exchange them for STEEM, then exchange STEEM for fiat value or other crypto unless you don'have a STEEM-100%backed system.
This means that you have to do 2 trades SBD --> STEEM; STEEM --> SOMETHING ELSE that creates more devaluation risks for users. You have two operations that are a source of risks, not only one.
Also considering that waiting 3 days in a so volatile world like SDB market is very dangerous, even more than wait for the average Crypto transaction.
This doesn't mean that I am bearish about this project, but in my opinion SP is not money and SBD is even more dangerous for sellers than Bitcoin or STEEM. Because you have greater devaluation risks (another trade to exchange SDB in STEEM and, before of this, 3 days to wait).
This problem could be at least in part solved by creating a free market for SDB similar to STEEM or other crypto markets, with crosses to FIAT or other crypto...
One major point you bring up is the desperate need for steem/fiat pairings. The fact that you have to go from STEEM to something else before going to fiat is a major drawback. Like you said, it increases the risk.
As for the volatility, we will see if/when that settles down. In general, that is one attack on crypto that cannot be disputed...the volatility of the tokens makes it difficult to conduct commerce. Over time, it should lessen a bit but it might not. That is why Bitshares created the pairs that are held at a dollar so that merchants can price stuff accurately.
For this entire arena, we are so early that it is hard to tell what will unfold.
Yes, of course we still are in the early phase. We don'k know what kind of regulamentation we will have, we don't know how will crypto-markets evolve in the future, and we don't know what kind of developement will affect crypo protocols and token management.
Here we hare having some theoric talks, we are triyng to predict the
unpredictable...
Lol @ rolling papers 👍👍😂 good call
Of course, that is a shout out to you...
Or are those budgeted into your spending like the electric bill? LOL
No... but weed certainly is... $450/ month
As I have written above, in my opinion Steem Power is more similar to an investment. 3 month to cash out is really too much, and SP creates the possibility to get new cash flow with network influence and upvotes.. Just like a financial security
I like that it takes 3 months.. it forces me to save... which only makes me more in rewards..I only invest what I can afford to so powering down and cashing out isn't really a option until it's life changing money... in which case I got 3 months
I perfectly agree. Slow cashing out is a good resource to give stability to steem network - although it cannot control market volumes and it cannot completley bring down the steem supply in the market, particulary in moments of panic selling on exchanges.
I was simply pointing out that you cannot consider Steem Power as money, because its concept is very different from easily-available store of value. It is something different, more similar to "investing" as you said