The Real Reason For The STEEM Dollar Climb???

hello steemates again I'm Paul here anyway to the task at hand I still can't let go what's happening with steam dollars I just find it very interesting that it lays tends to lay very dormant for so long and then all of a sudden jumps to to a level of trades roughly between five and seven dollars spiking even higher example for the last ten days or so and it doesn't seem to be letting up I think a number of us can come up with reasons as to maybe why it might happen in the short run but a sustained growth I don't know why so I thought I'd do a little more digging and so I went to the steamed white paper and I guess I was looking to see what was the steam dollars original intent and of course its intent is a way of lending the community the value of one u.s. dollar which is designed to foster growth that's pretty well a summary of what I found in the white paper so what that basically means is as you receive your Steam dollars for your creative blogs or vlogs whatever they may be there is an incentive for you in the early days an incentive for you to keep them in Steam dollars because guess what it's backed up by a dollar u.s. so you know at least it's giving you that amount so people who would take comfort theoretically in steam dollars because steam dollars are really derivative two dollars now I won't get into derivatives except to say that the derivative is something that's backed up with a financial instrument of some sort that is shall we say I hate to use this word but the best way for those like me who are not really up on diluted derivatives it's like collateral for the note okay so for example one steam dollar no matter what happens theoretically will be worth one u.s. dollar.

well if that's the case and it's pegged one u.s. dollar why is it trading for five six seven dollars or more well that's the big question now derivatives and therefore steam dollars are derivative dollars as I said derivatives are great in many circumstances but they can also be difficult or cause problems let's put it that way as we saw when derivatives backed by mortgages in 2007 nearly caused the world financial crisis or caused the world financial crisis and and a near collapse so derivatives are great but the question I would ask and a lot of people gonna ask well is for is there for every steam dollar a u.s. dollar sitting somewhere in a bank account to back it up I don't know I don't know if that's the intent I don't know if that was worth it's plan but that's a question that some people should ask and maybe we should find out an answer for okay so having said that steam dollars unlike a lot of other cryptocurrencies or other financial instruments for example are autonomously created now they are created from the inflation that occurs I believe was hard for 15 if I'm not mistaken let me just check my note hard for 15 which outlined 9.5% inflation and so on a creation of additional of additional steam dollars for reward purposes as far as steam it goes so you can find out all that detail by just going in and checking out higher for 15 so now we've got this situation where we've got steam dollars so why the devil you know is it being bought up okay now if we look at the actual steam at platform you go sorry you look at your own wallet on the steam at platform you'll see a number of options that you can when you were awarded steam dollars a number of options for you that you can elect to carry out of course there's you know cashing out transfer buying steam selling steam buying Bitcoin and you'll all see all of those options now understand what all those offices are but you'll see them if you go down to the pulldown menu right beside steam dollars in your wallet again.

it's pretty obvious but I want you to just maybe do that and you'll see what the options are and and having said that when you look at those options you know you can also you know cash out by cashing out of course follow one of the options and you'll end up with cash in your hand and here's where I think you know maybe the answer is to i steam dollars right now we're riding on the initial marketing strategy for steam as far as I could see when it hit the market and and and in this case it was largely one I think that was adopted for swift growth was hey earn income from posting original content on steamin I mean when I first heard about steam it that was the thing whoa just post regional content and you can get steam dollars turn it into cash etc etc etc right and of course some understanding of steam power as part of that and curation as well but anyway stick to steam dollars right now turn it into cash great income Wow and a lot of people came on board because of that but you know something that might have been an initial strategy that worked but maybe not the strategy that we need right now all right so and I'm going to explain why that may be the case steam Ian's for the most part are unfamiliar with trading you know so I'm thinking that the idea of income which was originally shall we say positioned as the reason to join steam is now changing but the way to change it is to keep people buying and holding not steam dollars but maybe steam all right I'll explain in a minute what that what that does but anyway so from that perspective look at the at the level of understanding of new people coming on board and of course those of us are on board.

I mean I'm still learning the very much learning the subtleties of of what's happening on steam it and steam and steam power and so on but you can best say that I think a lot of steam ian's and certainly new steam Ian's coming on board are very unfamiliar with trading at all but trading can be done very simply on the platform as I say go to that little steam icon and pull it down and you have a lot of options there okay it's very easy to buy steam a little more difficult to buy Bitcoin or an instrument shall we say outside of steam it but still easy to buy steam all right so what happens when we have this increase in steam dollars what it does is it encourages us to cash out steam dollars and buy steam it's the easiest one some will still cash out for for income some will buy will buy or sell steam for Bitcoin although there are some out there that believe that it's not the best to do that through the steam platform because block trades doesn't give you the best rate shall we say on the exchange between steam and Bitcoin but nonetheless easy to buy steam so now if if there's this in if there's this incentive to buy steam and to have as many as possible of us when we take steam dollars now not to cash out but to actually buy steam that puts upward pressure on the value of the steam itself the token itself right so buying steam will drive up the price now the danger of this of course is that those people who buy steam instead of holding it could sell steam in this case at I think it's the dollar fifty two today something like that but what's interesting is is when you exchange steam dollars for steam you will get a value in steam much greater than steam dollars because of the value of steam dollars so in essence you are leveraging your steam dollar into steam and therefore having a greater wealth overall in terms of the value of steam all right now so you can then take that steam as I said and sell it or hold on to it now if steam keeps rising a little bit each day chances are you're gonna hold on to it more than you are going to sell at least many will like myself and many others out there doing that okay but regardless of whether you sell or not the very action of you buying steam creates a higher volume in the steam trades themselves so now you've got an interesting scenario where steam dollars are are fueling the price increase in steam and of course the volume numbers in steam okay.

why now well guess what's going to be happening in the near future the velocity hard fork we're going to be looking at with mobile and the velocity hard fork of bringing a lot of new people into this into this onto this steam a platform now if we keep this incentive or this encouragement - - shall we say exchange your Steam dollars for steam the pressure on that creates a new possible marketing strategy for steam at the platform overall now what they want to do is as opposed to encouraging you to come on and earn income now when I say they I mean those huge holders in the value of steam Wales for example if they keep the value of steam dollars high and it's leveraged sales in other words more steam than what you would normally get at a dollar value alright then what they're doing is putting out there and then Center for all of these new people coming on and continually us in here to keep buying steam so is the increase in steam dollars a way that those in the platform are looking for growth are using it as an incentive for all of us to buy steam well quite frankly I think it's a great strategy for all of us really yes it tells me that if the whales in this case are buying up steam and they have you know a lot sorry buying buying up steam dollars and they have a lot of steam I mean if they have a couple of million or ten million steam you know and steam goes up a buck well that's a hell of a lot more of an estate than they're gonna get by buying you know a few thousand or or more or 10,000 or even 20,000 30,000 steam dollars which is just really a lever for them to make more on their overall steam I don't know if it's a conscious strategy I don't know if it's somebody up at the top that is now making a play a or putting us in a position for the real move that's going to occur with velocity and mobile okay thats enough thanks for reading.