July 4th Price Action - Pure optimism and lessons not learned
I think no lesson was learned and so history repeats itself. In BTS printing new money for workers was claimed to be the discovery of ‘self funding blockchain’, when in reality it was just what it was – printing new shares.
In this post https://steemit.com/steem/@dantheman/july-4th-price-action
DanTheMan / Bytemaster/ therverseflash offers his opinion on “What will happen after the Steem Dollars become liquid
First let’s see the meat of his argument first (in point #2 of dan’s) which at least on the surface seems to sound logical
”You will get more for your money by selling Steem Dollars for BTC”
The fallacy of the argument is that this SD for BTC trade must exist in a vacuum in order to work as described. In reality you still will need 500,000 USD worth of BTC willing to buy into steem dollars for this scenario to work…where will those money come from? Do you have those investors lined up and waiting to grab those steem dollars of yours Dan?
I think no lesson was learned and so history repeats itself. In BTS printing new money for workers was claimed to be the discovery of the ‘self-funding blockchain’, when in reality it was just what it was – printing new shares. What is needed for funding is what has always been needed – investors/ people holding money willing to buy/invest… but apparently the most important lessons were never learned.
In short on the other 2 points in the post :
“The Supply of Steem Dollars is limited” - limited it is, but it amounts to a ‘limit’ of ‘only’ 500K usd. Which in all likehood is enormous compared to the buying interest into those steemy interest bearing Steem dollars
“A large percent of Steem Dollars are being earned by Steem Bulls" -this is quite illogical argument, bordering on funny. So what is your point dan? That the steem bulls will be willing to hold steem dollars instead of steam?
Bulls are smart enough not to dump Steem Dollars or to use their steem dollars to bid up the Steem Dollar / Steem market.
As a steem bull wanting to convert into Steem Power I would find the cheapest route to be the auto-conversion to Steem at the price feed. The internal market will bid up the liquid steem / steem dollar price due to a large amount of buy pressure. This means that even though 500k steem dollars is created, much of it will be converted to Steem Power leaving much less sell pressure.
The stupidest move any speculator could make would be to dump their Steem Dollars for less than a dollar when they can wait it out and get almost a full dollars worth. Others who are more patient will be providing liquidity.
Yea sure... I guess paying miners and electricity power companies isn't "just printing new BTC"
In any case I would like you to give a price prediction for the 4th of July or afterwards
Mining rewards is printing new BTC for sure. It never have been claimed for bitcoin to be a 'self-funding blockchain', though.
You are annoyed because BTS instead to paying the miners alocates the printed BTS for development? I don't get your point.
Any prediction for the price? marketcap will fall? marketcap will rise? no marketcap movement? any specific number?
Or it's just that "the persian arrows will blot out the sun" ?
My prediction:
7 usd per steem by the end of August! In other words - market cap bigger than btc!
:)
A rare dissenting opinion, you bring up points worth discussing. If there is a marketplace to sell steem dollars directly, you may be right. It could be a repeat of BTER creating a direct BitUSD market, removing the need to buy BTS at all.
What is your opinion on what will happen with the SteemDollar? Is there anywhere to sell them, or are they only able to buy Steem?
There is nowhere to sell Steem Dollars yet because Steem Dollars don't yet exist. The developers have said they hope to have direct SD/BTC markets either immediately on July 4 or soon thereafter. The original post makes a good point that this is not worth much unless there is demand to buy the Steem Dollars.
I was wondering if there were concrete plans for it, but have not seen anything official.
If there is to be an official place to buy\sell Steem Dollars, it might be good idea to tell people where that is beforehand. Some advertising about the upcoming "sale", might bring in enough buyers to lessen the impact.