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RE: Was the Launch of Steem a Scam or the Only Legal Way? - Thoughts on Steem by Charlie Shrem a Week Later
To put it this way : with no new users buying Steem or SBD, the platform can't survive.
Of course it can. It's based on inflation, which is just a way of redistributing wealth. If the market cap stays the same, it just means that those who get the new money benefit at the expense of those who own the old money.
Sorry @tarantulaz is more correct on that point in the present environment. People want to cash out their rewards and you can see this easily in the steady stream of coins flowing from authors to exchanges on the blockchain. Only if someone wants to buy in will the tokens be able to retain a value.
In a fantasy land where reward-earners are happy to stay within the system and enjoy their larger share of the Steem pie, buyers wouldn't be needed, but that won't happen for a long time, if ever.
@samupaha yes it is the same as Bitcoin, and Bitcoin can't survive without buyers either as long as miners and existing owners want to cash out. It isn't just a question of market cap going down, it flat out won't survive at all if no one want to buy it. Of course in practice the price finds an equilibrium. With few buyers spending little money that equilibrium ends up being low.
@jasonmcz the net cash outs have to be equal to the net buy ins (for every seller there is a buyer). It isn't that one being larger than the other makes the price go down, it is that the price moves to the point where the two become equal. In part this happens because some people have a fixed budget they are willing to invest. If someone is going to invest $1000 that absorbs a lot more STEEM at $1/STEEM than at $5/STEEM.
Like what @tarantulaz and @smooth are saying here, take a look at STEEM against other currency while is there a steady bleeding on the price? the answer is simple because of
authur_content_return > total_amount_outsider_buying_inand it will stay this way unfortunately if the user growth can't match up the content reward.It's the same thing with every inflationary currency. For example, if the market cap of Bitcoin stays the same, it means that price of bitcoin will go down because new coins are mined continuously.
New owners (miners) benefit while the value of coins owned by old holders will go down.
Of course the market cap will go down if people sell their cryptocurrency for fiat. But the same happens with Bitcoin, too, when miners have to sell their coins to pay their electricity bills and buy new hardware.
Compared to Bitcoin, Steem has advantage if the market place will come someday. It will create larger internal economy where people don't have so big need to exchange their SD to fiat currencies. Instead they can use them inside the Steem ecosystem.
I can't believe that you don't understand such a basic concept . So you survive because the fed is printing money. Even if a central bank was printing equivalent amounts for everyone and gave the money to them, nothing would really change. You can't create value.
So you would accept losing money constantly, because someone posted a good article. Not even based on what you think. Maybe BM thought someone wrote a good article, so he takes your money and distributes it to others.
AHAHAHAHAHAHA. What wealth? And with that redistribution, how will they make money if they don't sell their steem tokens? What gets me is that crypto people are so illiterate (financially), that it doesn't surprise me, how prone they are on getting scammed by people like Larimer.
I know you from the BitShares community. You moved scam and you expect to make money samupaha? Following the leader that created and then left Bitshares , expecting to make money as an early adopter this time. Nice!