RE: Steem @ $1.07 - Plumbing The Depths of $1 Support At Bittrex Today
Ah, yes, those guys. I have dealt with them before and find them toxic, so I try to avoid those debates now.
It's important to note that Steem's inflation goes down by .5% flat each yeah from 9.5% initial, so it actually trends down pretty harshly. More harshly than the ending taper of Bitcoin difficulty.
Spam is indeed a key problem but I don't think it's unfixable. As the whitepaper notes, even this bot abuse are doing at least as much work as a PoW mining algorithm would be doing to secure a network.
When you think about it, Bitcoin miners really just point CPUs at a network and spam it with mostly useless mathematical calculations to secure a network. It's not much better than these bots, as the white paper notes, which is funny to think about.
I do not consider l0k1/elfspice/calibrae toxic.
voluntary I know less of.
Part of the reason to Steem's decline is the belief that storing such a big, growing and accelerating volume of data on retail computer can not be sustained, and due to spam bot farmers, it is worse than you feel.
Read sherlockholmes' work since cheetah's and steemcleaners' reports did not convince you so far.
PoW work in Bitcoin is not a guarantee of lasting growth of your share of the stake for long, due to Bitcoin's quantity being limited and I guess there are more reasons to it, but bot farming here does, at least initially, due to compounding effect.
What makes spam bot farming threatening for Steemit is its waste of unreleasable space which is even multiplied by the number of witnesses computers.
It is not like a PoW miner wasting its own energy, it is a bot farmer wasting its own energy and 50 others' limited SPACE!
Spam is worse than you think.
I would say that even without it, an immutable blockchain modeled social network is unscalable and unsustainable.
Just to clarify, I am not advocating for spam. I Agree with sherlock's work, as well as cheetah and steemcleaners. They all do a community service. I was playing a bit of devil's advocate.
I also think Steemit is superior to Bitcoin, technologically, so I would not advocate for taking up Bitcoin-style changes.
We're more in agreement than you think.
IDK if Steemit is superior to Bitcoin technologically, because I lack knowledge about blockchain and other things, but having an inflationary currency is an inferiority.
An immutable blockchain is a bad thing, it compromises efficiency and privacy.
IDK why carry the burden of the past forever, and this is aimed against both Bitcoin and Steemit's spam, and also against many things which most do not consider spam, but I do.
In a pure cryptocurrency case it is clearer to me why immutability is a flaw, in a social network with content it is more complicated.
I am also against proof of work, so if I had to design a cryptocurrency, it would vary from Bitcoin in more than one aspect.
Do you know if and where there is a list of all the consistency and security mechanisms/algorithms like PoW and PoS? I saw others being mentioned too.
Burst uses a new one, called Proof of Capacity. There's also variants of PoS like delegated PoS. Not sure if there's a list anyhwere, you may need to Google.
The immutable block-chain can still be anonymous, it just isn't really with Bitcoin.
Steem has a faster, lower-fee block-chain, which requires a lot less energy to run. That's mostly what I meant by superior.
Steem's block-chain is not really lower-fee, It is just more collectivist by financing costs with inflation.
In BitCoin, a buyer and a seller have to pay for their own. In Steem everyone pays for each buyer or seller.
Regarding less energy to run, will it not increase in the future?
This is top-notch!
You do realize Bitcoin is still inflating, right? And with Bitcoin Cash surging, Bitcoin original may not survive to become a "fixed" currency.
Inflation isn't always all bad, and Steem's dwindles over time. Nobody will take loans in a deflationary currency.
Energy costs for Steem witnesses will increase, but it's nothing compared to what kinda power Bitcoin uses up hashing.
Bitcoin is still slightly inflating, but with Bitcoin you know the rate of inflation declines exponentially, and more than exponentially, because it will get to a 0.
With Steem you have a constant rate of inflation.
Totally different than Bitcoin. Similar only for the short term.
What is good about inflation?
Steem's inflation doesn't dwindle over time, Bitcoin's does.
Why is it so important that people will take loans?
So important that it is worth devaluing other people's rewards for effort or talent?
Functioning economic systems have loans, and you can't take loans in deflationary currencies. That's all I'm saying, there's room for both.
Steem has to be inflationary to create rewards with (less) opportunity cost. If it were fixed, it would become zero sum.
My understanding is inflation is 9.5% -> 9% -> 8.5% etc. each year until .5%. That's pretty low.
This is truly remarkable.
I think the blockchains need to be designed to be immutable with the exception of allowing them to be split. As long as there are periodic checkpoints within them which hold the current state of the blockchain, there would be no burden of re-indexing it all frequently, which is currently a big challenge for the Steem blockchain. With correct design, the tail(s) can be archived and validated separately and needn't really be a burden. A social media site doesn't suit this approach quite so well because people want to see the older content, so that content should really be in a separate data-store instead of being integral to the blockchain. There's also a governance issue, that this would address.
I hope to write more about this in a post soon.
This is sensational.
I agree. Increasing the curation % would reduce self-voting and spam, but it all ultimately comes down to the data model.
You're a star!
This is excellent work.
This is gold!
Thank you for the insights.
I can't stop watching/reading/listening.