Bitcoin Trust VS Steem Utility
It's no secret that Bitcoin is a much more trustworthy coin than Steem. With ten minute block times and the highest hashrate in the world, the Bitcoin community secures their coin above all others. However, what can you really do with it? Most people simply consider it a "Store Of Value."
DPOS coins are an attempt to bridge the gap between trust and utility. With three second blocks and no mining fees, Steem finds itself on the verge of being much more useful than other cryptocurrencies. Steem is a top coin when you consider how easy it is to distribute inflation in a decentralized manner.
Everyone was worried about EOS coming on the scene and blowing everything else out of the water because it's theoretically superior on a foundational level. So what happened there? We see, time and time again, that new coins suffer from a lack of development. Everyday in the news we see more and more projects hopping on the crypto-train as the fiat value crashes into the mountain. Is this folly or a Golden Opportunity?
Worst case scenario
I don't want to sound like a cheerleading propagandist, so let's look at the worst outcome: Steemit Inc hits a wall and decides to cut their losses. Most of the whales jump ship and dump all their coins on the market. The value of a Steem coin is worth less than a penny and the only way to keep it alive is to organize a new dev team that would be willing to work for peanuts.
This is a real possibility, but would it really be the worst thing in the world? There are diehard members in this community that will stand tall even in the face of the worst adversity. There will always be witnesses willing to keep the network up and running. Steem isn't going anywhere even if it falls into complete obscurity.
When Steem was priced at $4-$8 everyone complained about it "not being fair" that so many people got to buy in for cheap. Now we have firsthand experience as to why this is a logical fallacy. Where are all those same people now? Are they buying up coins as fast as possible? No, because price action is completely unpredictable and they are afraid it will crash even more.
In fact, with SBD at 80 cents, the chances of more downward pressure is extremely likely as users trade in SBD for Steem.
So what?
How many other coins let you so easily control the inflation of a currency to support the users/projects of your choosing? How many other coins have a built in community with an easily accessible API? How many other coins will pay developers to create open source software? How many coins want to be known as the one that pays you to ______?
Have you really lost anything?
You know, a year ago I was actually worried that I had missed the train and that crypto would just keep spiraling upwards. If that were the case, it would have been very difficult to acquire coins. When it really comes down to it, you haven't lost any investment until you capitulate and sell it back for fiat. From my end, that's never gonna happen. I'm not even going to think about swing trading until Steem is up to $75 a coin. Maybe that never happens. So be it.
I honestly don't think I'll ever convert my crypto back to fiat....
I'm not investing, but buying a currency when it's super cheap because the infrastructure hasn't been developed yet... it seems crazy to me to convert it back, when I could instead just wait until I can spend it on the things I want to spend it on... it's clearly only a matter of time.
I completely agree with you, even if Steemit Inc does go under, I'll still be here as long as I have friends to play with… there is a lot of value here for me... the financial aspect is just a bonus.
I'm actually worried about Bitcoin. With mining getting too expensive to mine Bitcoin the average miner and smaller mining companies have stopped mining. That only leaves very large mining operations. Bitcoin has been centralized for some time, but that centralization is getting worse. Bitcoin can easily be double spent all day long. My fear is that the company that owns the majority of Bitcoin mining are facing bankruptcy and may actually double spend to keep themselves from going out of business.
I don't believe that Bitcoin is much more trustworthy coin than STEEM. I don't think Bitcoin is a good coin at all to store value. That is why I don't own any.
STEEM is way better. Majority of block production is split between 20 witnesses that earn the right to be a witness. STEEM is highly scalable and doesn't cost hardly anything to run compared to most currencies.
Yeah honestly I'd rather have Ethereum than Bitcoin. The development there seems to be much faster paced.
That is very true and it's why in bought more steem recently. The bear market will not last forever
Well, your worst case scenario might actually become reality if @Ned's last post is anything to go by. But like you said, there's nothing else like this out there. As long as Steem keeps chugging along I'll stay. Where else can you get 1 immutable account that works across a variety of dapps. Sure there are projects that do something one of Steem's dapps does, but it's just one dapp. Steem has it all under one umbrella, you can't beat that.
Thanks for directing me to that post. It seemed odd that Steem would fall from the 30's to the 50's on the market cap. This is a clear mismanagement of funds. When Steem was expensive they could have bought more than enough runway to get themselves through the Winter.
I guess that's what happens when you're riding high on $8 Steem and choose to double down.
You're welcome. :) Even if we've seen the actual bottom now the community has been taught a valuable lesson. We need to grow totally independent of steem inc. It would be nice if they continued to work on the blockchain ofc, but they've dropped the ball one too many times to be reliable.
I’m on the fence of powering up more Steem or not. I don’t want to put all my eggs in one basket but I also want to take advantage of seemingly rock bottom prices.
I’m not entirely sold on bitcoin. I’ve bought a small amount over time less than .3 coin. I see the price continuing to fall though, not sure where it will go to recover.
I know what you mean. Honestly every coin is a steal deal right now. No reason to risk it all on Steem. The main ones I'm eyeing right now are Ethereum, Maker, Binance, and Tron.
I’m going to nab a little bit of Ethereum but some of the others I don’t know enough about to try right now. I’m trying not to spend too much money too quickly so I can gauge how I feel the market fluctuating. Don’t want to lose my shirt like those knee jerk investors did early this year!
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