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RE: Never ending inflation - do we really need it?
To keep the cash flow coming, like many here expect, then you have to keep printing money, which results in inflation. The reason FB kept and keeps growing is their user base keeps growing. I tried to explain Steemit to a friend of mine and kept telling him that you make money for posting there. He said he didn't care. Everyone he knows is on Facebook, which is what appeals to him.
Take a look at how top heavy the tags are in regards to popularity. The best rule the roost. You may end up with a niche site here where no one else wants to play the game.
I like that I can post here, make a few dollars and share it on FB and Twitter. At least the posts I want people to see. I also share posts that I find of interest. If enough people on FB start to see interesting articles from this Steemit site it may get them curious.
I can remember the early days of the web. I had found it and would tell people in my community. They would look at me with these bemused smiles as I would talk about the potential and how it could be such a huge benefit for us. Some have eventually told me that they remember thinking I was nuts, but not so much now.
I don't vote without commenting and I Tweet everything. I have a post in my blog about it, but in a nutshell, I think we should reach out to the rest of the internet and tell them we're here.
I understand this and I don't say we should stop printing money. I'm just against keeping the printing rate at a fixed level, as if we aimed to be a start-up forever. This achieves nothing, yet sends a very unpleasant message to people investing in Steem.
We could say that inflation starts decreasing after e.g. 2 years (and continues decreasing slowly for the next 100 years). If Steem does not gain much traction by then, it will be a failed business anyway and no amount of financial incentives for bloggers & curators can change this.
Anyway what is better: have 5% to distribute from a market cap of 500M or 10% from 100M?
STEEM provides value for Steemit by creating a tangible product to reward for participation. Steemit's value to STEEM, thus far has fostered interests and grown the market capitalization. When the paydays start dwindling, interest is apt to ween as well. There is a finite number of people that will be interested in being involved with crypto in any way, STEEM included.
They're watching all this and may or may not invest when the time is right. The good news is, you do have a growing member base that has made a lot of money here. Let's hope they come back in after they've cashed out. There's one sure way to ensure future growth...re-investment.
Interesting comment about a friend not being interested because everyones on Facebook. I remember when no one was on Facebook but I got that this social phenomenon was going to be huge. As I watched hundreds of friends join , I made a business page and invited them to like it and now Facebook want to charge me for my friends to see my posts...crazy stuff but I guess thats why Facebook price is, ( NASDAQ: FB - 22 Aug., 7:57 pm GMT-4 124.15USD ) ... wouldnt it be great if some of the $350B market cap of FB was shared among their 1.5B users? Maybe.. just.. maybe, Steemit will get to 5 million or even 10 million users some time soon and we will share in the value of helping to build an exciting and viable social network of our own.
My friend didn't care about the money. FB has always been about exclusivity and inclusion. Zuckerberg saw an angle and he stole it. It worked, big time. The creators of Steemit see their angle and have been successful so far. One of the differences between Steemit and FB is that we all get to be involved in the success or failure going forward. FB people just had to be sheep, we have to be rams here at Steemit.
I like the sheep to ram metaphor. Simple, but says it well.