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RE: STEEM Is NOT Steemit. STEEM Is More Valuable Than Steemit.

in #steem4 years ago

Well said, this is principally why I talk about exploiting the power of the steem blockchain. The blockchain has value, steemit. Com is just the first manifestation of how to implement the blockchain, but it think we can do much more than that.

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The immense value of the steem blockchain is just unquantifiable, the prospects as just much, we can really do better as you said.

We just have to invest more by powering up and creating more awareness here

Major campaigns on facebook, twitter and instagram on why steemit is the new game

In no distant time, steemit will be king of the crypto space

It's funny to me how your comment reflects the challenges we face. Your profile image uses the STEEM logo but still says Steemit (since that used to be the Steemit logo, that's understandable). Your comment mentions "why steemit is the new game" and "steemit" being the king of crypto (not STEEM).

I'm not faulting you, I'm just pointing it out for us all to be aware. It's so easy to confuse things by describing STEEM and Steemit as the same thing or within the same context.

When I commented earlier I automatically substituted Steemit when I meant to pust Steem. I realized as I was typing that I was doing exactly what you were talking about and corrected it hahaha. I think I need to say it out loud myself, Steemit is not Steem.

We have to say it out loud! How funny is that reality? We all make this slip up regularly, and it's confusing potential investors.

dropping more money into steem does no purpose. All you do is allow others to extract more value from the blockchain.

real value comes from real need. And if there isnt a need for steemit to exist, then the value will never come.

The solution to this is to make people aware that their needs can be met with the steem blockchain. how this can be done is no easy task and one of the things I've been thinking about for a long time.

Something to consider:

If enough people drop enough money into STEEM to give it global name recognition and a massive market cap which brings stability to SBD allowing cryptocurrency world domination, is that not valuable? Could that not change the lives of billions of people who are currently unbanked and controlled by violent governments?

There is a need for STEEM to exist. There may also be a need for Steemit (and similar social media platforms) to exist as existing tools fail, censor, control, and restrict users.

One huge potential solution for the world STEEM could bring would be a blockchain-based UBI. Even Dan Larimer, an anarcho-capitalist, recognized this.

I don't think injecting money into the coin will do any good if the increased value can be simply extracted from another party. You could theoretically vest the money and put it to use, but that's utility isn't it?

I look at it like the back bail out and qe, theistic money at the block chain went change the fact that it needs to have use first.

As for stabaling currency is world economies, I think that the concept is great, but putting it to practice is extraordinary difficult. But it needs to be done and the sooner we can act in it, the better. My only question is what is stopping us from making crypto a real currency?

The answer is stability, and that can only come with steady utility. What do you think?

STEEM has a defined declining inflation rate and a defined distribution of the newly created coins. So the amount that can be 'extracted by someone else' is limited. Even if 100% of the rewards were entirely parasitic and useless from the perspective of adding value (I don't believe this), that would still only only represent about 9% of STEEM's market value this year and that will decline by 1/2 per year for the next 19 years.

Furthermore if you (or other stakeholder voters) really believe that the bulk of the rewards are being wasted, then you can vote for my burn posts which direct rewards instead to be used to buy and burn STEEM, increasing its price and reducing its supply.

The answer is stability, and that can only come with steady utility. What do you think?

I disagree in that I think it only comes from a huge, massive market cap. That's how currencies work. Enough people have to invest in it and believe in it as currency (the utility part is just a mechanism for them to believe this). Think of it this way: all fiat currencies today have the same "utility" technology as paper or coins or even digital balances in a bank account. It's not the utility that gives these different currencies their different purchasing power values. It's control by governments via their own inflationary policies and propaganda. It's essentially what people believe. Many believe the USD is stable (compared to others), so they choose to put their money there giving it a huge market cap which brings stability.

Simply putting money into STEEM could bring about other emergent values which is why I do think valuing it as a currency is important.

I'm confused by your "simply extracted" perspective. Anyone can buy or sell a currency. You can deposit or withdraw.

I think we are both saying the same thing from a different starting point.

Let me establish that by asking, how do we get to that massive market cap? If we look at how the dollar got there, it was through the projects that the US Government initiated to create a need (such as the bretton woods system).

For that market cap to exist, there needs to be products and services that people speculate will succeed. Involuntary injection of money into the blockchain will only yield with people taking advantage of free money, because that is essentially what STEEM does. It creates a rewards pool, and how that rewards pool is dished out, is really up to the stake holders.

In the interest of self preservation, people will often reward themselves before they reward others. So to change that, we will need to create incentives for them to use the coins in different ways. That can only come with establishing products and services based on the coin.

That's the path to a large market cap. Otherwise, how can we get there?

When I mean "extract" I mean if person A injects $X and powers up on the STEEM network. because of supply and demand, the price of steem might go up in that process. But how do we maintain, consistently that value?

One answer is to have such a high valuation of steem, that $X has no real effect. But before we get there, people will constantly try to cash out their portion. The solution to this is again the large market cap. My concern is how we get there.

Getting a high market cap is very simple: price per coin * number of coins = market cap. You either have to increase the price per coin or the number of coints or both. We already have the number of coins increasing and there are no plans to change that any time soon that I'm aware of. Price per coin only happens when more people buy the coin than want to sell it. That's all I was saying.

We could discuss various strategies and reasons for why someone would want to buy STEEM. I think you're argument has something to do with there being more of a marketplace to use STEEM as a currency. I like that perspective and hope it to be true, but Ned said something at Steemfest which stuck with me concerning currencies and stable marketplaces. If the price of the currency fluctuates too much, people won't use it to buy things and merchants won't want to sell their products for it either. It may be a chicken and egg problem, but ultimately the replacement of the fiat system with a cryptocurrency system is the number one way to increase the market cap as more people exchange their fiat for cryptocurrency.

And don't even get me started about the Bretton Woods agreement. From my perspective, the United States basically screwed over the world by taking all their gold.

This is deviating a bit from the initial post topic but I felt inclined to jump in...

How does one buy Steem? and/or acquire it? Are there other uses for, or platforms using #Steem, besides #Steemit?

(excuse any novice or redundant questions/comments)

The high value of Bitcoin is due to it being -obviously- a base coin if not the base coin, and because it is a means for people to buy/trade/invest in other cryptocurrency/coin. Which is aside from it's ideological value and its (relative) efficiency as a cryptocurrency. This is what makes BTC a power player more than it's efficiency as a blockchain or currency.

From my rather basic understanding of the #Steem blockchain and it's capabilities (based on the few posts I've read so far and previous convos with @motoengineer) it appears to be far #superior to those of the top base-coins and most other coins.

However, no one knows about it. Or how good it is. Or how to get it. And to be frank I wouldn't imagine the majority of people who would potentially use (buy/trade/invest/purchase with) it, even care about anything more than the face value of it and how they can use it for their own personal benefit.

This brings me back to my initial (semi-rhetorical) questions up top...
Getting the word out there on what Steem is, where it can be used and how to acquire it, is cyclical (like someone may have mentioned above) almost chicken and egg like. So while the value of Steem is in its mechanics, it cannot function at the moment without Steemit or a similar platform to help it get exposure and continue to rise.

Price per coin only happens when more people buy the coin than want to sell it. That's all I was saying.

Agreed, but thats not worth discussing because getting the people to inject that capital is the main problem.

If the price of the currency fluctuates too much, people won't use it to buy things and merchants won't want to sell their products for it either.

This is 100% true, but I the only way I see it reaching a stability point is if people stop wildly speculating on steem and start producing services so that there is a real need for steem. If the need exists and a solution/product is there to satisfy that need, you've created a circulating force for steem, that circulation is what keeps prices steady since no one is trying to cash out of steem.

As for replacing a whole countries currency with a digital one, thats a tall order. It is, like you said, a chicken and egg problem.

No one will replace their existing currency with a digital one, if it cannot maintain stability. But stability cant be maintained if no one keeps their money in the system (hence why powering up was invented).

We will get there, but we need to have ideas that push us there.

Yes, steem blockchain adds value to steemit bc it is build upon the technology from the ground up... there is so much more that Dan Larimer is going to do for steemit in the near future, can't wait to see what he has up his sleeve... glad I am here to witness it, is all I have to say

Dan has moved on from Steemit and is focused on EOS full-time.

Well, we are still in good hands here and EOSio will be revolutionary if Dan's over there full-time