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RE: Steemit's REAL Diabolical Plan For WORLD DOMINATION - Part 1
Hi Andrew, thanks for the great video. You do a great job of highlighting the interesting properties of the Steem economic system and why it is an innovation on traditional financial systems.
It would be great to also note that Steem has a number of failure modes that could cause the system to underperform or even fail. It's important to keep such risks in mind, especially in the world of cryptofinance. Some failure modes to watch out for:
- If Steem subscriptions stop or slow, and SP starts to be liquidated on the market, the price can crash.
- If the Steemit curation system rules fail to converge on a system with quality content, subscriptions will slow and users will eventually leave.
- If the spam bots accumulate more reputation than the anti-spam bots. :)
- If the Steemit platform (and/or sister apps) fail to achieve critical mass before the payout economics of the system are no longer sustainable on future expectations.
- Probably many more involving security, hacking risks, and so forth.
Another comment: While Steemit is indeed in principle a system which assigns power proportionally to productivity, remember that in practice people with high buying power can simply buy political power in Steem.
I'm sure all of these are valid concerns, but we have a community of thousands who are interested in acknowledging flaws and creating fixes. If these are, in fact, flaws you could become a millionaire proposing solutions.
SP is just a share of a company. At some point (but not from the start), each company has to earn money to compensate the costs (like costs of employees - authors, curators, etc). At some point Steemit would have to have business model, which could compensate this 5% of inflation. This could be ads, special promotion content, even some fancy layouts for Steemit profiles. There will be a lot of possibilities.
Ignoring two critical points. 1. Growth of the Steemit population. If population of steemit more than doubles every year, demand for steem will outpace inflation. In truth, population growth of over 10% would probably be sufficient as only 10% of new money created goes into liquid money. 2. If products and services created by steemit population increase demand for Steem by more than 10% also negates growth of money supply. I suspect that for at least a few years, demand for steem will greatly outstrip money creation without the need for ads. Strongly doubt that ads will ever be used as revenue generating for Steemit, Inc. Users may allow others to advertise on their blog, but steemit won't need it. If it does, this enterprise likely has failed. This is about increasing demand for the underlying crypto: steem, which everyone at Steemit has a great deal of.