STEEM: Ask It And I Will Try To Answer It.....Let's Hear What Is On Your Minds
In the 4 months since I joined Steemit, I threw myself into learning all I can about the blockchain and what is going on. Over the past decade, I followed and studied technologies that I felt were going to change the world. I came across bitcoin in 2011 (should have invested then) and realized the potential of this new technology. Over the next few years, I came to understand crypto and blockchain technology.
Therefore, instead of me writing a post based upon something that came to my mind, I figured I would open it up for you to ask questions about whatever floats your boat. Please try to contain it to the areas I just mentioned although I will try to answer everything (bear in mind, my knowledge about poetry and the history of Iceland are rather limited).
I will do my best to get to all questions today. Also, if you see a question posted, fell free to answer it. Let us all try to share the collective knowledge that we have.
So ask away....
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I had to ask why not keep the sbd price a little high. Why have they kept it at around 1USD.(though the prices are high now until corrected)
The thing is that Steem doesn't really have any control over the price elsewhere. As I understand it, the one dollar peg is a guarantee that it won't drop below one dollar.
If SBD is listed elsewhere and people push the price up, steem can do nothing about it.
They could peg it there on the internal market but that would result in more SBD leaving the system.
Eventually, the price will probably stabilize and return to the peg. But this won't happen until the new money flooding in figures out that Vests are where the value is.
Or maybe it won't. That is the nature of the free market. You have to let it find its own level and then try to figure out your play. Too much interference will only muck up the works.
That makes it clear. Thank you
Glad I could help.
Thanks again bro.
The idea of a pegged currency is for commerce. Businesses cannot price things accurately when a currency is bouncing all over the place.
If SBD is pegged at a dollar, then merchants know exactly what it is worth and can price accordingly. If the price is jumping up or down 15% in a morning, that really throws thing off kilter.
I am not sure there is a big move to push it back to $1....might be but I havent heard it discussed a ton.
Yeah...I understand what u explained here. My question was why 1 USD specifically. It might have been 9 USD as default. From 9 USD as fulcrum it may go up but never less than $9
USD is the most used currency on this planet. So it's easier for many people to think of SBD as just Dollars. 1 USD is specifically used purely for the ease.
Okay, I'll take a stab at this. So I kind of understand the interest in cryptocurrency, but I'm still a little lost when it comes to other applications for blockchain tech itself.
My limited understanding based on about a month of on and off research tells me distributed ledgers which can't be tampered have applications in certain fields, particularly finance. But now we see blockchain-based solutions cropping up everywhere (like startups claiming to be the 'Uber of x', now the trend seems to be blockchain of 'insert problem here').
Do you think the tech has the potential to revolutionise every industry? And have you come across any examples of innovative use of blockchains that perhaps took you by surprise?
My view is that in 10 years, 90% of all world commerce will be on blockchains. We are going to have millions of blockchains at that time...some large, some small...some public, some private.
What surprises me is the growth rate of blockchain. There is no way for Wall Street to pump enough money into cryptos to keep pace with the growth of this technology. Cryptos wont bubble because of this.
Well, that's reassuring to hear. And thanks for taking the time to reply :)
As far as how blockchain could affect everything beyond the financial industry check out this link to another aricle on Steemit.
Thanks! I had read a little bit about some of the applications mentioned in the article but this helped add some perspective.
No problem, this is what I'm here for.
Glad I could help.
STEEM is recently lagging in bull market. Even few months back it was around ranked 20, it is now close to 40 that means 20 some coins have seen bigger growth than STEEM. STEEM is purported to be the most active blockchain in the world and lots of developments going for STEEM, then why it is lagging to other coins? Marketing? Lack of exchanges? Inflation (9.5%) supplants user growth, therefore, not enough user growth? Skewed distributions, old whales are still selling?
Pricing action of the market reflects nothing more than the pricing action of the market.
Why is SBD, something pegged at $1, trading at $9? Because the market decided it.
I wrote an article the other day to ignore the pricing action of the currency. STEEM is now $3.20 whereas it was $.85 6 or 7 weeks ago. The progress is the same now as it was then, just the market decided that it wanted to push up higher.
As long as the progress on the blockchain keeps moving forward and the number of people on here grows, eventually the pricing action will move up. I would say it is under valued at the moment compared to where it should be.
A lot of time fast runs in a particular asset means nothing more than a bit of publicity.
Yes, I'm a novice; and, I spend lots of time researching; but, the answers aren't always clear.
Question: Is the market primarily controlled by investors?
So, you suggest keeping eyes on the price of STEEM, more than SBD for actual growth.
Question: Do you suggest HODL even if the SBD drops the STEEM value back to pennies on the dollar?
It's been a great run up for the past few weeks. I have to say I want to preserve what I've accrued; and, would love to be able to learn how to use the openledger.io and bittrex exchanges with more ease.
Posts such as this are definitely welcome, and a refreshing exit from the 'in-fighting' many are finding themselves in the middle of recently. My go-to mentor is in the midst of one; and, I feel like questions such as this would only be a distraction.
Thanks for the work you do!
Peace.
Really appreciate your recent explanation of how facebook can't just dream up a token to counter Steem. That was weighing heavily on me for months and months.
Other question - how do you picture Steem once it's fully mature and there's no more yearly inflation? Will new users be interested if the supply is tightened severely? How will rewards be paid for once the inflation stops almost completely?
I believe the inflation of the currency takes place over the next 40 years so I am not sure it is really a major problem for a while.
As for diminishing reward pool, I think the idea is the increase in value of STEEM more than compensates for it.
Which makes sense...a .9.5% inflation rate should easily be outpaced...if STEEM only increases at 10% a year, that is poor in the crypto world.
Under settings and permissions in steemit we have muiltiple keys and a password. Should we have each one of those backed up? How would you back it up? Hard drive or paper backup or both.
I need to learn more about this. I probably already should know all this.
It doesnt hurt to back up all your keys.
The biggest ones are master and posting. Posting is actually required for account recovery.
I copied my posting key onto a piece of paper and in a safety deposit box. Same with the master key.
They are like oxygen on steem....act accordingly.
Thanks. Just read your article about account recovery too. Good info.
Keys??? What keys?!
The passcode you use to get on here are also known as passkeys or keys.
Go to wallet, then permissions and you will see your different keys.
Well.
THIS is good to know!!!
Thank you. Will keep them recorded and safe!!
Yep, do you think it is worth to buy little amounts of Steem (Say 50, 100, 200 dollars)? Not to speculate on the steem market, but to give some bust to my account into SP?
Cheers!
I can only tell you what I do.
Since I joined Steemit, I have bought STEEM, my last batch was at about $2. Every steem or Steem Dollar I acquired resulted in powering up. I have no taken one dime out since I started.
I believe we are going to see a massive explosion over the next year in this blockchain. Therefore every bit of SP helps. It increases your voting power which helps yourself and others.
Think of this site with 5 million people on it instead of 50,000...the reward pool will be spread among a lot more people, making your position that much higher.
Interesting. One more:
I read your other other article about Appics. If it is based in Steem technology or code, and (i guess) on Steem value... If that platform increases, the XAP increases, but also de Steem value?
Or two different things, different values, different platforms, and different outcomes?
The value of XAP isnt tied to STEEM in that sense. XAP can increase while STEEM remains stagnant. Pricing actions can take place in all different kinds of ways, which are hard to predict.
What will happen is that if Appics takes off, that will be more users and bandwidth on the system, meaning that STEEM is more valuable.
Yea! thanks man!
First of, THANK YOU! I’ve never come across a post like this where a user is like “Hey, I murder my audience with big words and complicated terms let me check up on their actual understanding”(Something schools should do). My question is on “Marging watching”. I understand that you place what I see as a “bet” which can be increased by getting a loan from the provider. If the certain coin decreases in value then you lose all you placed down, otherwise you gain. On what websites do you this? And I’m getting what’s going on? Anything to add?
Buying on margin isnt only isolated to cryptocurrencies.
To learn about that, I suggest a site like investopedia.com and doing a search for margin buying there.
Basically, it is a way of leveraging your purchase by taking say, 1,000 but buying like you had $10K worth of money. If the asset goes up 10%, the total gain would be $1000 which would double your initial money (less the margin costs). Of course, if it goes down 10%, you would have a margin call meaning they close the trade and keep your $1,000.
I am not sure which brokers offer margin buying on tokens but I would suggest you avoid it. That is a technique for highly advanced traders.
I read an article the other day displaying how much energy bitcoin takes to make transactions. I understand steem is a blockchain - what is bitcoin? - and bc steem is a blockchain it takes less energy right because it is distributed through many individual servers (the role of the witnesses, right?). I'm trying to wrap my head around what these people are actually doing and the difference between bitcoin and blockchain. Also, what is the sustainability future of these technologies as more people use them in relation to energy usage? (Bitcoin transactions using as much energy as small countries...) Are we consciously sculpting the way forward prioritizing alternative energies (solar, wind, etc) to think about the crypto energy footprint?
Fake news article saying bitcoin will consume all energy of world.
https://www.cnbc.com/2017/12/21/no-bitcoin-is-likely-not-going-to-consume-all-the-worlds-energy-in-2020.html
Btc uses a lot of energy...that is true....it is also the reason many of the miners are converting over to renewable energy to power their operations. China is a big user of solar and that is where many of the mining operations are located.
As for the difference, blockchain is the underlying technology. That is a decentralized, public ledger. Tokens are nothing more than an app built on the blockchain, like Steemit is. Bitcoin is a blockchain...as is Eth...as is steem...they are all separate blockchains with their own token.
I had to ask why not keep the sbd price a little high. Why have they kept it at around 1USD.(though the prices are high now until corrected
SBD was designed to be like tether...a currency that was pegged to one US dollar.
This makes it easier for merchants when pricing things. It is hard for something to be money when it is constantly bouncing up and down at a 15% clip.
Of course, SBD fooled everyone and moved up.
This is a very interesting initiative. Perhaps this is your new shortest post.
I'm interested in such a question, what kind of users Steemit most improves this platform? Good luck to you and good.
I think its the creative people- the artists, photographers, story-tellers, bloggers, vbloggers, opensource developers etc. It is sometimes hard to monetize creative works due to middleman (e.g. google ads, studios, website taking percentage of income, advertising etc.), STEEM removes them. Both consumers (e.g. readers, users) and creators gets the reward, no middlemen.