RE: Steem Price Needs a Fix, ASAP!
Two reasons:
No incentive for promoting steemit, can be fixed this way: https://steemit.com/promotion/@lasseehlers/1-lifetime-referral-reward-on-steemit-does-that-sounds-good-in-your-eyes-suggestion-for-the-devs-and-the-witnesses-implement
Centralization of Steem, the Steemit Inc wallet... I know that the owners of Steemit INc will not like what I write now, but its the truth and my earnest opinion, and someone got to say it!! : The Steemit Inc Wallet needs to be burned or distributed among all steemians... it just does not make sense to invest in Steem when 46% of Steem is held in a central wallet... Also the steem needs to be spread out to alot more people.. I dont care how... but it needs to happen before more serious investments will come to Steem..
Before those 2ish issues are fixed, the steem price will only go one way and that is down! So if you want to keep your value you need to sell now, that is the truth.
Mark my words.. popular or not.
Lasse
PS: Resteemed.
Referral system does not solve this issue, since the issue is not based on lack of users. We already have many users. It's based on lack of value and economic activity throgh Steem.
That won't do any good. The majority of the inflation doesn't come from the @steemit wallet, but from the authors cashing out their Steem or SP. Many authors here are full time bloggers, and they cashout their money to live on it. We the investors are subsidizing their blogging technically, which is fine ,but just pointing out.
The spreading out of Steem is nonsense, it will just make things worse and the price will collapse even faster as everyone would sell it. Plus it's a Marxist/Socialist argument, and I don't like that.
No the problem can be fixed as I suggested in the article. By creating APPS that make use of the Steem as a currency.
The user activity has also been dropping, check the stats at SteemPunks, if you like. The user growth have also been dropping dramatically. Steem is already prepared for a promotion system with a referral program, so I believe it will come in some form at one point.
What I meant was that the steem needs to be spread out to more users in a natural and market-ish way. I agree that just burning the Steemit wallet or spread it out is not sound economics, I don't have the answer to this problem, other then that the steem need to be spread out before intelligent investors find steem attractive. So I guess the only real way is for the Steem price to fall even more and let Steemit Inc spend their Steem on development, first when that is done, will the price go significantly up again. Personally I am glad I didn't invest 1 cent in Steem, as I only see it crashing even more under current economics (I could be wrong of course).
Sure I am an Anarcho Capitalist, I don't believe in a forced wealth distribution, so naturally the Steem price only have one way to go and that is lower.
More users (though a promotion system or not) will potentially have a positive effect on the Steem price and more APPS too. I am not a big fan of more centralized APPs, but sure this will also have a small positive effect on Steem price.
I dont think you are an Ancap if you don't understand the concept of scarcity. The less Steem is circulating the better. Which means that the supply should be non-circulated , or the demand should be high.
Both sides can be tackled, but I prefer to increase the demand side, since the supply is already as it is. It's an inflationary currency, which in of itself is not bad. What is bad is that the demand is lower than the inflation rate.
I am an Anarcho Capitalist.
Centralization of the Steemit inc wallet scare investors and the lack of incentive to promote steem is the two biggest reasons the Steem price is falling.
They need to spend that Steem and they need to incooperate a referral program into the blockchain, then Steem and Steemit will flourish and the price of Steem will be going to the moon.
A referral program is good but it wont solve this issue. Referral system will mean more users, who will just register, and start blogging. So what that will do is to just make the rewards/users smaller, but wont change anything in the inflation.
Again that is a bad argument. Promotion of Steemit doesnt necessarly help, unless the new users are entrepreneurs who will do something in order to make the Steem currency useful.
What we need now is the entrepreneurs who will make 3rd party sites like shown at : http://steemtools.com/
That will incorporate Steem as a currency, in order to give utilitarian value to Steem. That way the demand will overcome the inflation, and the price will go up.