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RE: How To Increase The Value Of Steem - The Ultimate July 4th Strategy!
Very good post @cryptogee Just one question:
So the value of each post fluctuates depending of the steem price in the market?
Btw: could you explain in just a few words where does the money come from? I've read a lot about it but still don't know how to explain it to people who doesnt even know what blockchain is. It would be great to have an easy understandable explanation.
Thanks in advance!
Amín
Two things cause fluctuations, other overall votes (dilute votes before them) and fluctuation in STEEM market capitalization. Steem Dollar payouts are always based on a percentage of Market cap. Once payout occur daily these things will be less noticeable.
Will it be less noticeable because the Steem will be more spread out?
CG
we have seen the fluctuations over 2 months which have been wild, in future it will only be as long as up to 24 hours after the last vote for the payout to occur, a lot lest time for fluctuations to occur.
No problem @nolimit,
Yes that is the case with the Steem price, but you only tend to notice when there have been big moves, think of it like this;
If you have 10,000 Steem and each is worth $0.25, if the price goes up to $0.50, then your Steem is worth twice as much and you need half as much to make up the same amount of Steem Dollars.
I shall explain where the money comes from in as few words as possible, but I'm assuming you know what cryptocurrency is to make the explanation shorter.
The money comes from the cryptotoken called Steem, the Steem has been 80-90% premined and then given to Steemit. The Steem blockchain then dissemenates the Steem using an algorithm to determine who gets what, by way of voting and such.
This is why when you start an account you have 10,000 Steem, approximately worth $3, in the future, I imagine this won't happen, as this Steem has come from the original mine.
In the future, the money will come from the fact that Steem is being traded, like any other digital currency, so it's value will fall and rise as such.
Also there is the other 20% which is getting mined and so new Steem is coming onto the market.
There is more to it, but I think that's all you really need to know, as it gets hard to keep the language simple after that. I freely admit, that this is because I don't fully understand it past that point.
But if you have a head for finance and maths, then I suggest reading the white paper, which you can access by mousing over the 3 bars at the top right of the screen.
Cheers
CG