# The Price of Steem should currently be trading at \$2.22 and here's why:

in steem •  last year

# Over the last couple of years I have heard quite a lot about an interesting equation, well "law" actually, that has been used to attribute value to certain social communities.

It's been used to attribute appropriate values to Facebook, Google, Amazon, and more recently it has even been used to calculate an appropriate value for bitcoin.

I am talking about none other than Metcalfe's Law.

# Metcalfe's Law states that the value of a system is proportional to it's number of users squared.

Specifically it's defined as:

"Metcalfe's Law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n^2)"

The "law" was originally presented in 1980 but wasn't formulated in the above way until 1993 by Professor George Gilder.

The intent was to try and explain the network effect. How adding more users to a system doesn't just increase that network's value linearly but instead exponentially.

To illustrate that, the "law" is stating that if you have 100 users and a value of 10,000 and you double your user base to 200, the current value of your users doesn't double and go to 20,000. Instead it goes to 200^2 or 40,000.

# Cool, but what's the big deal?

The reason I bring this up is because my favorite Analyst on the Street (Tom Lee) has been using this model for some time now to predict bitcoin prices.

Well perhaps, not so much predict, but to help get an idea of what plugging in certain numbers might do to prices of the coin.

Namely, expanding the number of users in the bitcoin network.

Surprisingly, (or not surprisingly), Lee's modeling has been extremely accurate!

Check it out:

Perhaps better than being a price predictor, this data might be useful indicating whether prices are in "bubble territory" and when prices are undervalued relative to their network usage.

For example, in the above model you can see that when the model was well below the actual line, the price eventually made it's way down to where the model was. Meaning that if you had looked at this at that time you might have guessed prices were a little overheated due to actual network usage.

Basically, this is saying that if you see a big divergence, in one direction or the other, between the number of active users squared and the price, perhaps you can gain some insight as to where prices might go next (if those usage numbers remain constant that is).

More on Tom Lee and his ideas behind using Metcalfe's Law in regards to bitcoin can be read here:

# Cool! How does this relate to steem?

For one, I would think that steem is probably even a better example of the network effect as its primary users mostly come from the social media site steemit.com.

Knowing that information, is it possible we could come up with a theoretical price of steem?

Maybe!

According to data pulled from @penguinpablo's daily steem stats report we can see that yesterday steemit.com had roughly 24,000 daily active users:

https://steemit.com/steemit/@penguinpablo/daily-steem-stats-report-friday-november-10-2017

(chart courtesy of @penguinpablo)

Applying Metcalfe's Law from above we can take that 24,000 active users number, square it, and come up with roughly 576,000,000 of value. (24,000 x 24,000)

That means with that number of active users, the total value of the system should theoretically be somewhere around \$576,000,000.

More than double the current market value of \$243,000,000.

To get a theoretical price of steem based on those numbers, we simply divide that 576,000,000 by the number of steem outstanding, which currently is 259,000,000.

(576,000,000/259,000,000)

Performing that calculation would give us a value of \$2.22 per unit of steem.

Pretty cool eh?

# My thoughts:

I know I know, this isn't really that great of a price predictor and probably not all that accurate as there are many variables that could explain why prices could be well below or well above that Metcalfe value.

Prices are often based on future expectations as well, so perhaps a number well below that might indicate that currently market participants are expecting those daily transaction numbers to not grow as fast as the inflation rate of the currency (steem)? Or it could be because of any other number of future expectations.

However, instead of being a price predictor it might be a valuable tool in deciding whether prices are over heated in terms of actual usage rate or possibly undervalued compared to its network of users.

Basically, this is all just more of something to keep in mind as opposed to something to base your buy or sell decisions on. :)

Also, keep in mind that this kind of comparison only works right now where steemit.com is the primary use case for steem. Once SMTs or any other number of apps start also using steem and the steem blockchain, the data from steemit.com mostly goes out the window as it would only be a small fraction of the coin's overall network usage.

Other than that, I hope you enjoyed my little fun steem price projection project. Feel free to leave me comments with your thoughts below.

Stay informed my friends.

Sources:

https://en.wikipedia.org/wiki/Metcalfe%27s_law

Image Sources:

Sort Order:
·  last year

Most applications of Metcalfe's Law use a coefficient to determine the value of a network. From this Wikipedia page, we can see the coefficient for Facebook is 5.7 X 10 ^ -9 based on a monthly active user count. Your calculation is correct if we assume the coefficient is 1. Which is very optimistic.

But, let's say that we that bound the valuation of Steem to 10 cents per Steem with the current user base. This is a very pessimistic valuation btw. That makes the coefficient for Steem around .045. If we expand to 100,000 active users in the next year using Metcalfe's Law and add 9.5% inflation to your current Steem number, we get a lower bound for 2018 of \$1.56. If we reach 200,000 users by this time next year, that number goes up to \$6.34. And that is using Metcalfe's Law with a pessimistic lower bound. Things are bright if the network can stay healthy.

·
·  last year

I was just writing about the coefficient. It was all good write-up until the assumption that 1 user = \$1.

@greer184, why do you think 10cents per Steem is pessimistic?

Also, the trend for number of users doesn't seem great. Do we have an indication that the number of active users might reach really 100k?

·
·
·  last year

I think 10 cents per Steem is pessimistic because I feel that the market demand would never let the value of Steem decline to that point (unless the site was dying). The trend for active users is not great, but that is most likely due to Steemit still being in beta and thus having no marketing presence and a lot of attention to Bitcoin's 2X drama.

If you look at sites like Twitter or Facebook, with an effective marketing campaign plus crypto becoming more mainstream gives me believe that the platform can get to 100,000 active users sometime in the next 18 months. I feel that Bitcoin is on the verge of becoming mainstream. Once Bitcoin pops, people will look for other opportunities naturally leading them to other cryptocurrencies with "network effect" potential.

·
·
·
·  last year

sounds like a win-win situation

·
·
·
·  last year

0.50 USD - 2.00 USD per Steem is realistic range, so 0.10 USD is indeed pretty pessimistic valuation. I set my sell limit to about 1.70 USD per Steem on HitBTC, because I think the value will reach that in decent time.

·
·  last year

Great points and thanks for breaking that down like that. Yes, I used a very simplistic version. The point is the same though, we grow this place, we likely grow the value of our holdings! ;)

·
·
·  last year

this is so informative ... thanks for sharing

·
·  last year

What would you get if you tried to derive the value of a single user? I'd love to know the value of a Steem user versus a Facebook user. I'm guessing you wouldn't just divide the coefficients

·
·
·  last year

Yeah, you wouldn't divide the coefficients. You could calculate the value added by the next active user added to the network at the network's current sizes. So, perform both calculations for n active users and n + 1 active users and subtract. Then divide the results for both Steemit and Facebook. You would also need to make sure you are measuring against the same time span. The coefficient they used for Facebook was for monthly active users, while I just borrowed the daily active users number above.

But the issue here is that Steemit is so new that we don't know if we have a reliable trend against Metcalfe's Law like Bitcoin or Facebook currently have. So the biggest question would be finding a good way to derive that coefficient. The estimate I did as a lower bound might still be too optimistic given the small user base that we currently have. Metcalfe's Law might not kick in until we reach a certain point.

·
·
·
·  last year

You break down complicated data into understandable bits...you are a math Master! Thank you @greer184, I admire minds like yours.

·
·
·
·  last year

Lets not forget that STEEM can and does apply to much more than just steemit.com.

·
·
·  last year

anybody can do it now , must wait .....

·
·  last year

Wow man, this is really useful math. I never thought about it this way. I mean, I knew Metcalfe's Law but I never thought of deriving a valuation based on it in this manner. Kudos!

Community Liaison, Steemit

·
·  last year

Nice support.

·
·  last year

it can be possible as steemit coomunity is growing @rapid speed

·  last year

This is first time I hear about Metcalfe method and this is the kind of thing I was looking for! Thank you!

·  last year

if only it was. Would be nice to see the platform growing because of it. The greedy people will wash out anyway and the actual community will grow.

·  last year

This means at 1Million daily user the price of STEEM should be 3,861\$ if you take todays number of STEEM outstanding as a basis. lol
Good to know...
60,000 daily users would be 13.90\$
100,000 -> 38.61\$
150,000 -> 86.90\$

·  last year

·  last year

Awesome post!

I was hoping Steemit would have much more than 25k daily active users by now. Aren't we a bit on the low side with that figure?

·
·  last year

I would tend to agree. Once the anchor is pulled and they start promoting this place I think that number quadruples pretty quickly. :)

·
·
·  last year

Promoting bit is nice. I had actually written a few lines on my post but it did not go well with an editor. I guess it was not my day. There are a lot of experienced writers in our fb group but many are not familiar with the process of withdrawing earnings in the form of crypto currencies. If only, someone set up an agency or bot to do so and transfer it to paypal, I am sure there will be an influx of writers to steemit. Thanks for writing about this.

·
·
·
·  last year

That's an excellent idea :)

·
·
·
·
·  last year

Thanks

·
·
·  last year

Promotion? Who believes that is probable?

·
·  last year

Number of users should increase when attracting more platforms to use it. Most ICOs use Reddit, Telegram, Twitter, FB and so on.

# advertising for #steemit would be nice.

·  last year

The value of steem is bound to rise mainly because more and more people use them.

·  last year

Anyone know how to find the number of unique accounts on Bitshares? I'm curious now.

·
·  last year

I'm getting 459396 accounts at the moment by using the API

uint64_t graphene::app::database_api::get_account_count()

http://docs.bitshares.org/api/database.html#_CPPv2NK8graphene3app12database_api17get_account_countEv

scroll up just a bit to see
uint64_t graphene::app::database_api::get_account_count()

·  last year

It's an interesting piece but I think it stops short of a few steps. Steem isn't the community. It's still a currency mainly driven by speculation and market forces. It's price is based on the value people think it has, not just the people who use it.

Personally I think it's valued right or even too high. There needs to be more uses for the currency and incentive for people to buy it.

·
·  last year

I share your wisdom and perspective good sir - thank you

·
·  last year

There are some big plans for the Spring, so I think taking into account the future value of these new features, Steem should correct upwards.

·  last year

@jrcornel, Thank you very much for a very informative and quality post. This analysis gives a very good foundation for one aspect of the price (ie fundamental value). The other equally important aspect is ofcourse the technical side (which reflects the investor sentiment and short term trading). As you probably know, the latter can be analysed using price charts which is an area I specialise in. My chart of STEEM suggests that the price is now bottoming and is beginning to slowly trend upwards (higher lows and higher highs indicated by pink dotted lines on the attached graph). Provided these recent lows hold, and the price goes above the sloping downtrend line (ie around \$0.95), the price is likely to go up and my initial target is about \$1.25 by the end of this year.

·
·  last year

Update on 27-Nov-17: The price of STEEM has moved up as I expected (see above) and is now at \$1.17. If it can break above \$1.47 in the next few weeks, IMHO it has a very bright future.
@marketreport @good-karma @jerrybanfield

·  last year

I love reading articles like this. It really helps me expand and understand what's really being delivered. Thanks!

·
·  last year

agree defango - follow you now

·  last year

Well, here's hoping we can hit those numbers.

·  last year

The Steem blockchain is an amazing project, more and more people will be part of this family in the coming days, social media will totally be reinvented in a couple of years.

·
·  last year

Body builder here too bro.. can I get a follow back? Thanks man..

·  last year

Steem is definitely undervalued, that's why every one should be buying now!

·  last year

I hope you are right. Stalking my steem and waiting for the spike while being active and produce more content and earn more steem.

·  last year
·  last year

It also means STEEM has bright future too since users can only go higher. STEEM has highest transactions among cryptos even surpassing ETH and BTC, more wallets/users than DASH, STEEM needs some real innovations in marketing to be valued properly/

·  last year

Good Post and great info ;)

·  last year

The issue is that the more content posters on Steemit who want to make money that way will cash out putting downward pressure on the price of Steem. Having more users alone won’t increase the price, we need more users who want to buy Steem to push up the price.

·
·  last year

People like me who have long background in economics know that using just half of the payout for trading makes more sense than using all of the payout for trading. My account value went up from USD 0.52 to USD 2.34 due to effect of single post. It makes sense to leave Steam Power from awards accumulating and trade with just Steem and Steem Dollars.

·
·
·  last year

That may be true but if you are blogging for a living you need to cash out to pay for things. Look at the highest valued posts from posters who regularly post. They all power down. Probably exghabge their Steem for fiat etc

·
·
·
·  last year

I don't have enough Steem Power yet that I could power down... Obviously in few weeks I can reconsider how much Steem Power I want to keep and how much I want to exchange as Steem. I already transfered all my Steem and Steem Dollars to HitBTC so I can trade them to BTC and eventually trade to either Tether or move as BTC in Coinbase.

·  last year

I know you said that this is something that we should just keep in mind, @jrcornel, but I think it's relatively true. There are many factors that I believe are keeping the price low for now. Once the beta is done and people are able to create accounts more freely without having to be approved, the Steem price will skyrocket. It's not so much a matter of if, but when.

·
·  last year

New accounts doesn't encourage people to buy Steem, which is what is needed to drive the price up. Ultimately we need people wanting to curate rather than post to drive the price up as to have power as a curator, you need Steem Power.

·
·
·  last year

That makes sense. I think that will happen naturally over time, but people will really need to see the value in curating instead of posting. Too many people are focusing the majority of their time posting (which isn't bad) and not enough on curating.

·  last year

Love these analysis. Similar to the NVT ratio estimation of price. I find them so interesting and entertaining but don't really ever know how much weight to give them as far as practical uses.

·  last year

yes ..it should be 2.2\$ but it is 0.88\$
and since June 9th 2017 ( STEEM was 2.79\$) it has lost about 70%, in dollars.
In the same time bitcoin has doubled it's price -so in confront of bitcoin STEEM has lost 88%

I love steemit and I use it a lot, but , if you want to make profits get other altcoins or bitcoins

·  last year

Thereat information about the primary value of a network Steem must be open for general use. From this page! STEEM needs some real innovations in marketing to be valued properly.

·  last year

Nice

·
·  last year

Nice too

·  last year

I agree with you, steem has a lot of value, and the price is pretty low now!

·  last year

Do you happen to know how an active user is defined? Perhaps @penguinpablo would catch this to be able to confirm.

Are there certainly activity parameters to that, or are people who are logged in at time "x" simply getting pulled to get that number?

I'm hoping that all of the marketing efforts many Steemians are doing will help this number grow, because we're at a bit of a plateau now.

·  last year

Great post. Thanks for sharing the Math.

·  last year

Good number crunching. Valuations and modeling can be difficult to determine but that model makes sense and I hope we can get steem to \$2+ again soon.

·  last year

Good method to valuate the Steem Price!!!!

·  last year

I think if crypto prices were really based on random factors and market ups and downs you could be correct, but mostly I think prices are being based on speculation by rich people who decide what coin they want to pump or dump, therefore at least in my opinion there is no way of predicting the price on a logical basis as the prices are just based on the whims of a few very rich players.
Just look at what your calculations give for what should be the price of Steem, i have no doubt you are right but in reality the market price right now is not even half of what you suggest it should be.

·  last year

Waww good

·  last year

Interesting! Wouldn't you need to compare it to the history though? You are assuming that 576,000,000 of value is \$576,000,000. If you looked at the active users vs market cap through history wouldn't it give you a better number for what 576,000,000 of value would equal. maybe it's \$0.50? Am I missing something?

·  last year

I enjoyed this little exercise, haha. I think your approach is interesting. I find it hard to believe that Steem isn't currently undervalued to some extent.

·  last year

I'd say at this point. Stem price is still largely under the influence of speculators, seeing how low the market cap is and how little accounts and sign ups there actually are.

A price mooning at this stage of the growth of Steem is not necessarily a good thing. As the platform is still kinda in beta (how to make sign ups sustainable, how to make platform more decentralized)

Let's just hover under the traders radar for now. That when it's time to moon, we'll moon all the way.

·
·  last year

The only reason their should be a price mooning, is if their a huge increase in the userbase.

·
·
·  last year

There should be a more streamlined approach to user sign ups. And it has to be seamless. The challenge now is that theres actually a fee to signing up but it's currently eaten up by the @steemit account (for sign-ups on steemit.com) even with the huge account SP for steemit, it would still not be sustainable to maintain the current way of signing up.

So that has to be addressed before huge influx of user base is possible.

How do we allow easier signup without making ourselves (more) vulnerable to spam accounts.

·  last year

·  last year

Thank you for bringing Metcalfe's Law to my attention. I'm not a math type person but this looks interesting. Great post!

·  last year

interesting reading, we all have to agree that the value of this platform, or any, steem coin or any other crypto is given by its users, tech and team behind it. Something we should all ask ourselves, how can we increase the quantity of users? how can we as current users provide more value to it? at the end of the day it will benefit all.

I keep asking myself, why didn't I know about Steemit before? Is it because they don't market it enough?

I hope more and more people will join the community! Peace to all.

·  last year

I followed you! ;)

·  last year

Thanks for the theoretical study... I think it does show the great potential for steem/steemit growth and nice to know that it will be potentially exponential!

·  last year

I concur.
I think it will be more like a tipping point situation. The network effect is still gathering momentum and will soon tip over and breakthrough the pricing.

This \$2.22 per unit of steem is achievable as we build this network.

·  last year

Great news

·  last year

Data is beautiful and my college math tutor always say, "mathematics is life!" I love the projection back by that maths. It is a feasible price that is completely doable. The logic behind it is solid. It was my easiest read for the day and THAT is not me BSing!

·  last year

bots are the reason the price of steem is low.

·
·  last year

Just downvote all posts made by bots... Eventually that should nullify their effect.

·
·
·  last year

how do you differentiate between a bot and a non-english speaker?

·
·
·
·  last year

Non-English speakers usually make more spelling and grammar mistakes. Bots also use exactly same text in each post except where username is mentioned.

·
·  last year

do you really thunk so? You might actually be right! If minnowbooster would stop for one day i bet steem would go up to \$2 lol but we cant do anything about that so we just have to wait!

Actually i heard there are investors and theyre keeping it low for the 21 million steem on bittrex order books right now .... theres 21 million steem people are trying to buy on bittrex probobly more on poloniex

see all that on bittrx? 21 million steem peopel wanna buy

and poloniex has another 2 million on order books and i bet theres more elsewhere

·
·
·  last year

Steemit is said to be a Social Media.
bots dehumanize it.
over 90% of all votes, and an increasing number of comments are done by bots.
not very social.
(I'll have my machine get with your machine)

·
·
·
·  last year

I find bots as annoying as blood sucking botflies. I wish they would go away, but even I use steemvoter a couple days a week to vote on my favorite steemians. The rest of the week I manually vote.

·
·
·
·
·  last year

i finally gave in and delegated 2000 out of my 2500 steem to @minnowbooster and i still am manually upvting my friends close to what i was but i just have so muc FOMO... if i cant make returns like bitcoiners (cuz i believed in steem and not bitcoin) then i should AT ELAST get to make some money on steem its so disheartening

Im stuck working for my money like a jackass lol i wanna be like these guys who just live off their passive income..... well i have passive income but i want at least \$1000 a day and thats honestly how much upper middle class make and i should ne able tio fucking do it fuckin shit fuckin things sucks!
FUCK IT

ILL DO IT LIVE

·
·
·
·
·
·  last year

Oh fuckity fuck fuck...falls over laughing...passive income, I've cannot comprehend what that would be like. I am like most American's working from paycheck to paycheck with just a little bit of savings to pay for my grave.

·
·
·
·
·
·
·  last year

Not good girl. You want your money to work for you and not u working for your money.

·
·
·
·
·
·
·
·  last year

@dang007, My money does work for me I bought art tools from my sbd and some bitcoin....we shall see how steem power and smt work....I'm watching and learning And I am skeptical at this point in time about the common person like me investing my time is this kind of system.

Automating everything takes the creator out of the picture and that's what I do, I create what you want to passively earn from and that kinda pisses me if if I get a limited return and you get all the profits from my efforts.

·
·
·
·
·  last year

Once we get more people on Steem, the bots will disappear to the background.

·
·
·
·
·
·  last year

I hope that solves a problem and bots are just annoying and not a symptom of a larger problem @fechaugger.

·  last year

Great post brother...:)

·  last year

Ya but steem dropped to .88cents usd why is is dropping so low if steem should be growing?

·
·  last year

Because it's still new and in beta. Their's no guarantee yet that Steemit will be a Facebook killer.

But every day the platform survives, more unique content get's created and so the overall value of the block-chain should increase.

So a stable price of Steem means that the underlying value is growing faster than the coin. Which means that the coin is undervalued.

·  last year

I think if you factor in the SBD it's a little closer to that \$2.20 mark. Still short, but definitely closer. But that might not make a difference either way, it just seems that since Steemit basically has 2 currencies their combined value might be a bit more representative of the total worth of Steemit. Either way, I'm definitely with your thinking that STEEM should be higher than it currently is!

·
·  last year

Normally the value you earn is split over the two currencies. But SBD is said to be around \$1. So eventually people will 100% power up since that give you a bigger share of the reward pool (if Steem > SBD)

·  last year

Well, 2,2\$ would be actually pretty good compared to the cheap low we had last months... Pretty sad :'(

·  last year

The law caused a boom in the appearance of dotcoms.
Do not forget this fact.

·  last year

thanks for the info

·  last year

Hi @jrcornel
It pleased his publication ... because of it I give him my humble vote for you.
I am starting using this social network because of it I have not published even.
Already I am employed at it... Thank you ... up to soon!

·  last year

Thanks @jrcornel for information...

·  last year

steem will go up next month :)

·
·  last year

how high? how can you tell?

·
·  last year

what makes you think that? add me

·  last year

THANKS FOR YOUR INFORMATION. THIS IS A GREAT PIECE ON INFO YOU SHARED. THANKS!

·  last year

Nothing math here but thinking realistically if more daily users are involved what does steemit do in order to create more steems for users? I would think the more users the less rewards to share among all of us. On other social sites advertisement is what draws in the money. More money makes more people join. Here on steemit the money in relation to steem will still have to be decided upon what people think its value is. Ideally the more people the more demand therefore higher price. Back to your point of applying metcalf law. I hope your are right.

·  last year

yup you are right

·  last year

Awesome pose, steem block chain is a great project

·  last year

ONCE BITCOIN STOPS ITS DRAMA STEEM WILL RISE TO MOOM

·  last year

Thank you for the wonderful post, I really like your post. You are doing a real good job! Continue and get a wonderful day!!!

·  last year

steem is less than 1\$ now

·  last year

The way you broke down the calculations is very helpful to understand. Good piece of work.

·  last year

Fun and worth considering. Thanks for sharing! Resteemed.

·  last year

I did enjoyed your post, indeed. What I am afraid is that the big number of users could cause the inflation of STEEM to grow faster and make the coin less valuable. I don't know on the other side what effect will SMTs have on its price. Any thoughts?

·
·  last year

The inflation does not depend on the number of users. From the Blue Paper:

The rate that new tokens are generated was set to 9.5% per year starting in December 2016,and decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. The inflation will continue decreasing at this rate until it reaches 0.95%, after a period of approximately 20.5 years

·
·
·  last year

Really? Oh, that was so well prepared, right from the beginning. Thanks for sharing, didn't knew about this!

·  last year

fascinating article. i haven't heard of this before but it makes sense! Thank you for adding value like this to the steemit community!

·  last year

Steemit spurt the bitcoin or Bitcoin Spurt the Steemit ? Its interesting Question.

·  last year

Nice means this plaste form rocked in future

·  last year

I didn't read a word of what you said, but sure why not!

·  last year

mantappp. plz follow and vote me

·  last year

Congratulations @jrcornel, this post is the most rewarded post (based on pending payouts) in the last 12 hours written by a Superhero or Legend account holder (accounts hold greater than 100 Mega Vests). The total number of posts by Superhero and Legend account holders during this period was 30 and the total pending payments to posts in these categories was \$851.15. To see the full list of highest paid posts across all accounts categories, click here.

If you do not wish to receive these messages in future, please reply stop to this comment.

·  last year

Nice. Very much important and informative post. I will help all of your steemit lover. Thanks a lot.

·  last year

Excellent read! Statistics are useful for the community to understand what exactly is going on behind the scenes. If only your calculated value of \$2.22 could (again) become the real value, I think we'd see a lot more happy Steemians!! Haha. Here's to hoping!

Keep up the good work, New follower here @jcornel.

Best Regards,
@Apocalypse612
Bishop Corey DeFrancesco

·  last year

·  last year

But then again isn't any crypto valuation affected by the Law of Supply and Demand? Steem is minted/created daily therefore there is a continuous supply of the tokens.

·  last year

:D

·  last year

Yesterday steem was around a dollar.
Today around 85+cents.
It is beneficial for you if you are earning steem daily.
The price now has no pressure to go up but to go down.
Quite a few steemians kinda lose faith and do not have the proper understanding of SMT and steemit.
Thanks for comparing steem in that regards.
Keep on steemit.

·
·  last year

Quite a few steemians kinda lose faith and do not have the proper understanding of SMT and steemit.

then fuck em! they dont DESERVE to have money! More for you and me! You have to have FAITh or KEEP UP with steem listen to the gossip in steemspeak.com and we get INSIDER info cuz we stay friends with the CEOs and people who stop by and dude... its insane... you just get to learn all the secrets of steem

you and ME we are SMART! i promise bro if u hangout with me and STeemit Team Ghana and team Nigeria with @tj4real @xpency @richforever @mcsamm theyt will wanna learn from you!

oh Heres a secret you can use to impress your friends in your hometown, Adam Back, british cryptographer is Satoshi Nakamoto, thats the bitcoin creator! He invented hash cash a proof of work email spam fighting system and so its obvious! so obvious when you look him up! i stumbled upon this information (well no someone really powerful told me)

also you can see the roadmap here

·  last year

You don't mention Steemit Dollars and I'm curious if you or anyone ever things one would be a better long term hold than the other. Steem Vs. Steem Dollars.

·  last year

Great post! a new method to know the price of cryptocurrency. Steem have a lot of potential in future. But the growth of steem is still very low and I don't think it gonna rise until bitcoin stops it's drama

·  last year

That's a really interesting post. Thank you for explaining it so simply! Looking forward to more of your thoughts on the future of Steem.

·  last year

Thanks for the explanation, very good article, I follow you with pleasure

·  last year

The crypto market is irrational and is hard to predict the price. At least what I learn, if you believe on the platform and people find a real value on it, then the price will grow organically.

·  last year

I really appreciate article like this. Very informative and well thought out. You can feel the effort being put in.

Many people on here simply put some shit post into the face of their followers, worst is they're getting much attention and revenue compare to those who provide some value to the community.

·  last year

Good read here. I am hoping that new people will continue to arrive here and that the price of steem eventually goes back up. 🐓🐓

·  last year

Thanks, @jrcornel, for an interesting post and to the commentators for adding very worthwhile value, to bring us to a helpful communications package.

Could someone help me here? How did Metcalf define how he is using the term "value"? Why should we be suggesting an equivalence between price and value (undefined), as happens from time to time in this discussion?

I believe that most people think that unless you have specified a particular type of value, using the term "value" without defining it would suggest that it is the outcome of the multivariate function. Even price is that kind of outcome. So how do we, at a theoretical level, justify trying to explain value by some Law as symplistic as Metcalfs?

``````Shouldn't we take an empirical approach in which the explanatory variables in that Law become part
``````

of a larger battery of variables in a function that is tested against real data? I have read (or heard) at various times declarations that Metcalf's Law "fits the data for X"; but I have not seen research papers where this is demonstrated (perhaps someone could point me to examples of such papers). Even if it fit the data for X, we still have to test whether it fit the data for Y. No?

·  last year

Is the user base growing as fast as the inflation of the coin? The high inflation of the coin relative to absolute size of the user base is important in calculating the value of a coin. Also, what is the user retention rate? I think this is much more important than absolute number of accounts opened. How long does the average user remain on this platform? I suspect that it is much lower than most people here think.

Using Metcalfe's law you square the number of active users times the average transaction size. You left out a key component in your calculation. How do we even define a transaction size in Steemit? The average voting size? I am going to go out on a limb and say it is less than one dollar. If the average vote size is around 50 cents, then our market cap is a bullseye.

·  last year

You are right, steem got a high value. Price is very low.

·  last year

Thanks so much for this, @jrcornel. I understood this law, which made get involve with #promo-steem and #promo-nigeria. I believe if we get more people to join, we can have great value in no time, thus we all benefit from it. @greatness96

·  last year

High-quality stuff!

·  last year

Tying the value of Steem to the Dollar may be problematic long term. The monetary power of Russia + China excluding the fiat Petrodollar and initiating trade outside the FATCA hegemony is only the beginning of the end. On the other hand wealth leaving a collapsing EU, then Japan, will bolster the fiat-fueled stock market and its pet Dollar to new highs in the short term, perhaps. My own plan is to learn how to hedge these extreme events in the FX as well as new cryptos with limited issue ONLY. The power to print money corrupts absolutely.

·  last year

You have the capability of writing the best posts with the best information.Upvoted and resteemed.enjoy steemit. @jrcornel

·
·  last year

·
·
·  last year

done mate @capetcha

·
·
·
·  last year

Done too bro , thnkx

·
·
·
·
·  last year

thanks to you mate.enjoy steemit. @capetcha

·
·
·  last year

u know what would happen if everyone followed each other? It wouldnt mean anything to follow anyone! Just remember that experienced users hate seein this shit but hey i guess u guys enjoyed ur circle jerk lololol
here ill even give u an upvote just to show u theres no hard feelings

·  last year

Upvoted @jrcornel for sharing valuable Information...

·  last year

Nice my friend pliss vote and follow me

·  last year

Thank you for your great information.

·  last year

To clarify, Metcalfe’s says only that the value of a network varies with the square of the number of nodes. So, if the nodes/users double, the value increases by 4X. It does NOT say that the value of the network is EQUAL to the square of the number of nodes.

·  last year

really nice post! Like the theory here! Thanks for following me back!

·  last year

Ah :)) I was think something same in my head :)
Very good post ... and makes me think more .
Same time I think... when this platform will begin to advertise itself... so what can be the price then? ... I think something 8...or 14\$ one steem.

·  last year

MetaCafe's law

·  last year

Than you for the info.