STEEM's Future Was Revealed This Weekend: Everyone Should Be Much More Confident About What Is Going To Happen!!!

Did anyone else get a glimpse into the future of STEEM this weekend? Did you notice what happened and how much of an impact it will have down the road?

There will come a time, in the not too distant future in my opinion, where we will have a foot in two different worlds. This will be a magical time for people on here which will lead to the upward boom that I discussed in detail over the past 6 weeks.

What do I mean by "two different worlds"?

At present, steemit has about 25K-30K active users with a total numbering around 450K. Growth is steady albeit not spectacular. Simultaneously, we see a token that doubled in price over the past month yet it is still down more than 50% from its' high. Last week we saw a nice pump in the token which, even though it pulled back some, has remained steady around the $1.70 level.

The end of last week saw a huge jump in the price of steem dollars. It went for the $1+ range to $18 on some exchanges. We saw incredible strong price actions which nobody can really figure out. Nevertheless, this is what gave me the insight into what is coming down the road.

We must remember that the entire reward system is priced in STEEM. Each of us has the option of being paid in SP or a 50/50 split of SP and SBD. When the payments enter our wallets, these are the only two categories that are filled. This does not change. Whatever reward is established for tomorrow, that is the entire reward pool for the day. In terms of STEEM, it does not change regardless of the pricing action.

Notice how nothing was mentioned about US dollars. When it comes to the reward pool, dollars mean nothing. There is a category in the wallet which lists the value in dollars but that is simply derived from the amount of STEEM in the account.

So where do US dollars enter the picture?

All post and comment rewards are priced in STEEM yet they are shown on steemit in US dollars. This is very important. We must remember people do not think in terms of STEEM but dollars. 2 STEEM does not register with people while $3.40 does.

It really hit home for me when I looked up my account on steem.supply. If you are not familiar with this, here is a site that will give you a breakdown of your estimated payouts over the next week. When I looked on Saturday, due to the run up in SBD, my incoming payments, priced in dollars were 50% higher than they are now. Naturally, my payments are not changing since I am going to get STEEM but the way they are denoted fluctuates.

This puts us in the chicken or the egg scenario. Does the price of the token outpace the growth rate of subscribers or vice versa? Personally, with the overall price action of the entire market, I think the token will move up at a faster pace than the growth rate. We will see a doubling in the token price before we see a doubling of the user base.

Ergo the magical two different worlds. We will still be a small community with a slow, steady user base while also having a rapidly increasing token. This means the reward pool, as listed in dollars, will increase significantly. Just like my payouts were noted to be higher, so will all prices on this site.

And that, ladies and gentlemen, will propel the growth of the subscriber base. Let us presume another doubling of the token. Imagine this site with every figured listed in dollars as being doubled. Now instead of trending articles being $250-$400 they are $500-$800. Now your 40 cents post instantly is 80 cents. Every dollar earned on this site is suddenly $2. Do you think that will get some attention? I certainly do.

This means that the reward pool, as priced in dollars, will double with, essentially, the same user base. The present content creators will generate bigger rewards for a short period of time. Of course, we will see a point where the growth in new subscribers increases enough to dilute the rewards pool bringing the percentage each of us enjoys down (a point where further increase in the token should offset that reduced dollar amount). Ultimately, each person will be earning less STEEM yet it has a bigger dollar value.

This is one of the reasons I am so bullish about STEEM. It does not take a great deal to create a feeding frenzy. The system is set up so that payouts do not fluctuate (as priced in STEEM). However, the increase in dollar amounts is what will garner the attention. Right now, we are receiving roughly 4 SP for each SBD. By using the 50/50 split, you are effectively increasing the payout on each post by 250%.

This is a big difference from a week ago.

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