You are viewing a single comment's thread from:

RE: Here's Why Bitcoin And Other Cryptos Have Soared

in #steem7 years ago

I see. Well, I'm not discussing the intrinsic properties of gold, but looking at gold as a rare commodity, which drives its price up. We can talk about paintings, rare stamps or ancient coins, in much the same way.

That's why my point was that a currency like Bitcoin will keep increasing in value, while a currency like Steem will not. Steem, along with many other alternative currencies, is only useful as a medium for money laundering , which is the reason of its recent price peak. So Steemians should keep their fingers crossed that this or a new ransomware keeps spreading around the world.

You can also look at the BTC/Steem comparison from another angle. Imagine there is a brand new social media like Steemit - would you rather get paid in a newly created cryptocurrency or in BTC?

A new cryptocurrency will not be immediately accepted by exchanges, as it may have technical flaws; if, at some point you can trade it, it will be for BTC anyway, because BTC to fiat exchanges usually don't trust any other cryptocurrencies yet; which in turn means you have to pay exchange fees and lose money.

If you were paid in Bitction, you can simply convert it to a fiat currency online or at an ATM. And you don't have to worry that tomorrow its price may have dropped ten times.

Which brings us to another point. Why did the Steemit developers choose to create a new currency? First, they needed a currency with an endless supply, otherwise people would have to invest their own money to buy BTC and upvote other people's comments (Steemit would've failed immediately). Second, they knew that this was a great opportunity to become millionaires - as it often happens with the first people to mine any new cryptocurrency.

Sort:  

Ok, I see how my discussion of gold was a bit of a digression. I see your point. I came here because it was an effecrive blogging community where the advantage if reward was icing on top. However, once I got involved, the sight of those little numbers going up, however small the amount, became kind of addictive. I suspect a lot of people are similar in that respect. Steemit offers the possibility of owning a piece of the platform as one might own shares in a company, but to what end? Internally, it provides some control, but in that respect it is not unique. You also get a share of the profit, but that profit is the "shares" themselves. I'm catching up here. I suppose if steemit continues to grow, it may gain the weight of a more established cryptocurrency. And it's current model does seem to be driving growth. But you are right... Does that mean people can or will use it like any other currency? Would other people or companies not interested in blogging exchange in steem based currency? It doesn't offer special advantages if you're not a blogger or a speculator... Or a criminal. You have a solid point.

Agreed :)

Coin Marketplace

STEEM 0.17
TRX 0.13
JST 0.027
BTC 60944.89
ETH 2608.11
USDT 1.00
SBD 2.67