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RE: STEEM-focused Content and The FIRST PRINCIPLES of Steem
This is what I've learned from the video:
Steem (the system) can work perfectly well without Steem (the digital commodity) skyrocketing in value. In other words, Steem (the digital commodity) does not need to skyrocket for Steem (the system) to work.
If Steem (the system) works then Steem (the digital commodity) will probably skyrocket as a result. But this skyrocketing is not a precondition (as many people probably think) but the effect of Steem (the system) working properly.
These are very insightful thoughts. This is probably one of your finest videos.
One correction, only Steem (the crypto-commodity) can skyrocket. The system is specifically designed to prevent the Steem Dollar from skyrocketing in value because it is pegged to another currency. This is probably exactly what you meant, which is why I do not refer to Steem as a cryptocurrency but as a cryptocommodity and I only refer to Steem Dollars as a currency. The repeated use of the word Steem can be a source of confusion, so I try to be careful. Thanks so much for the thoughtful comment. Glad you liked the video :)
Just to be careful, I wouldn't say it is "literally impossible" for the Steem Dollar to skyrocket. My understanding based upon the whitepaper is that if SMD are trading less than $1 and the debt-to-ownership ratio is under 10%, then the interest rate can be raised to bring the value back to $1. If the debt-to-ownership ratio is over 10%, then the number of Steem produced per SMD can be increased, which should also bump up the price. However, if the value is trading over $1, interest rates can be dropped, but aside from using negative interest rates on SMD, "there is little the community can do" (whitepaper). Of course, you could always make an argument that it would be unlikely for this to happen, since it would be illogical to buy SMD while they are trading above that psychological level of $1. However, we can't rule out the possibility of people doing illogical things. :)
Excellent point. Amended my comment. Thanks for the thoughtful correction. Look at us working together to create better information!
Good point. This reminds me of confusions (and irritations) in some college sports forums where, occasionally, some posters would forget to refer to a school by their proper name. For example, they would refer to: Penn State as Penn; Ohio State as Ohio; and UC San Diego or San Diego State as San Diego. It really drove me batty! As a Steemit newbie, I like to be constantly reminded of the difference between Steem Dollars and Steem Power and Steem.
Yeah I remember that being a huge problem for me too! All of the "Steems" can be a bit daunting at first, but I get why they used the same word in all 3. It all goes back to this being a "Steem Backed Monetary System"
Yes, I meant Steem (the digital commodity), not Steem Dollar. I'll amend my comment to avoid potential confusion.
I appreciate you being so precise with definitions - this limits the amount of misconceptions.
Another familiarity:
Steem dollars(to be used as a digital currency) are what Bitcoins were meant(not designed) to be but instead they ended up becoming steem(a digital commodity).
This comment is such a great summary of this post, that you my friend, are getting some SBD for your contribution :)
I feel both grateful and honored. Thank you.