Are You Really Playing The Steem Long Game?

in steemit •  6 months ago

For the last 3 months - starting November, last year, to be precise - we had a very peculiar situation here on Steemit: the "stable" currency of the platform, namely the Steem Blockchain Dollar, got pumped. The $1 peg was broken and the token traded at some point around $13k (and it's now hovering above $3).

This had a few consequences for the platform, with the most visible being a sharp increase on the rewards. I'm not getting into technical details, I will just say that the rewards are now "inflated" by this pump. I'm using the term "inflated" on purpose, because I don't consider this increase in rewards neither healthy, nor sustainable.

It's hard to know what exactly caused the pump, who did it, what are their reasons (one can only speculate about a pump and dump scheme) but the bottom line is that the current situation is not "natural". And by "natural" I mean "aligned with the long term goal of Steemit".

Don't worry, I still believe that markets are always right, and if the price of SBD is high, it means that somebody out there is willing to buy at this price. But while markets are always right, it doesn't mean the markets interest is aligned with my own personal interest or with the long term plan of this platform. In other words, markets may have a plan of their own, which may not be the one I'm willing to follow.

This relatively long introduction served a very simple purpose: to detail what the "long game" means for Steemit and what are the benefits - and drawbacks - of such a game.

The Quick Buck Mirage

Ever since November last year, the audience on Steemit changed drastically. There are a lot of people who are using it (almost) in a legit way, just because it pays back. They have no idea what's behind it, how posts are published, what is a witness, how the rewards pool is working and so on and so forth.

All they know is that they get a quick buck if somebody upvotes their posts.

There's nothing intrinsically wrong with getting paid, but when you get paid in the wrong way, you have to stop and ask yourself: "if this is not the right way to get paid and I'm still getting some money, how long this will last until it gets corrected?".

Because, you know, if the health of the platform is at stake, this current flow of money will dry up pretty fast. It's not that the platform will collapse, there is a hard core of people who will probably keep maintaining the nodes, but the value of the token will crash. Again, I'm not getting into technical details, but if a token is taken for a ride, meaning it's getting over-traded, artificially pumped and then dumped, the whole minting mechanism of that token will be affected.

I'm one of the people who got STEEM for their posts when it was worth just a little under 10 cents. Yes, 10 cents. And I still sustained a steady flow of posts, upvotes for other authors and comments. I maintained a witness node and I continued to build tools, like steem.supply.

I did this because I like to believe that I'm playing the Steemit "long game".

What Is The Long Game?

Let's get back to 2010. Just two years before 2010, a strange software project which aimed to create money out of thin air, with an even stranger community driven approach, in which you had to use your computer to solve meaningless mathematical problems to validate transactions, was launched. The name of the project: "Bitcoin".

Those who knew about it were mostly geeks and, to some extent, people in need for "alternative" money. It wasn't very popular, but it did have some traction in certain circles. The majority of people involved were considered creeps, though.

At that time, those who got Bitcoin were roughly split in two:

  • those accumulating small amounts and keep playing the game by:
    -- sustaining the network
    -- educating friends and family about it
    -- spreading the news
    -- and many other ways
  • and those who were relentlessly spending whatever coins they were making, because it was just a quick buck.

I think you now understand where I want to go with this.

But bear with me, there's more.

At some point, an interesting application was built on top of the Bitcoin blockchain. It was called "Satoshi Dice" and it worked pretty much like a lottery. A lot of people made quite a lot of money during that time. But the unexpected consequence of this application was that the network was almost clogged.

It took quite a bit of time for the Satoshi Dice phenomenon to fade out, and during that time, the hardcore adopters of the platform resisted the temptation to make a quick buck, and got involved instead in finding scaling solutions and keeping the initial purpose of the project: to create a decentralized currency.

The prospect of getting rich by pumping Satoshi Dice was real. And probably a few people made some decent money out of it.

But it wasn't the goal of the project. It wasn't aligned with the vision. It was cool to have it for a while, if you made some money out of it, but it wasn't the long game. It was some entertainment along the way.

Now, I will not even try to tell you where are the people who kept their Bitcoin and kept playing the long game, instead of immersing in the Satoshi Dice phenomenon.

They are the whales that are moving now a market worth almost $200 billion.

The SBD Detour

We're in a similar situation with the Satoshi Dice episode on Steemit, only our "fata morgana", our mirage, is the SBD pump and the unexpected increase in the rewards.

But here's what's going to happen if the SBD will keep growing. At some point, it will "eat out" the amount of circulating STEEM, in such a way that it will make it useless. Because SBD is just a debt-based instrument and it relies on STEEM, it's not backed by hard US cash and it's not the token created by the STEEM blockchain. It's just a smart contract eating out from the STEEM supply.

It seems so unlikely that SBD will erode the current STEEM supply, since the difference is so big: roughly 10 millions of circulating SBD, compared with more than 250 million STEEM tokens. But hey, we've seen even stranger things in the crypto universe, didn't we?

The long game for SBD is to stay stable. And for STEEM to go to the moon.

In this process, the rewards may take some hits.

And here's where the long game happens.

If you're worried that your rewards will get hit, you probably have no idea about STEEM's potential. You're "playing the Steem posting game" just like early Bitcoin adopters were playing the Satoshi Dice thing. Yes, you may make some money, but in 5 years you'll regret the shit out of this, when you'll see the value of the entire ecosystem.

So yes, while SBD will get back to $1, we may notice some painful reduction in rewards.

But in 5 years from now we'll be happy we took that hit.


I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.


Dragos Roua


Wanna know when you're getting paid?

I know the feeling. That's why I created steem.supply, an easy to use and accurate tool for calculating your Steemit rewards

It's free to use, but if you think this is a useful addition, I'd appreciate your witness vote.

Thank you!

Psst: new to Steemit? Start Here

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SBD pump was ignited by an organic transactional demand. Voting bid-bots was on the rise. There are only 2M of SBD tokens in circulation and open bid-bot software was accepting them only. So the community was in need of roughly 20-30 mln of SBDs in circulation while having less than 2 and being too lazy to modify bidbot code to accept STEEM tokens. The pump was ignited by this demand and continued on exchanges which were far from rational on bitcoin all-time highs.

Flash-forward 5 months we are still in need of 20-30 mlns of transactional SBD mass but having not 2 but 9.5 millions of them. So the exchange rate is still far north of the peg. Right now SBD price continue quickly inflate at rate of 500k a week. In late summer we will reach the transactional demand and SBD price will hit 1 USD. All thing will return to normal.

What lesson should we learn? Simple and essential economics. If you want to peg something to USD you need to hold or be able to create token mass large enough to meet any demand.

The rational strategy for steemian right now.

  1. Exchange all SBD you have to STEEM asap.
  2. Buy some amount SBD once they hit 1 USD to meet possible increased deman in future.

The pain is that MANY new steemians get used to inflated rewards and probably will leave the platform as soon as the get back to normal.

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Yeah i agree completely. I've been redeeming most of my SBD already and holding some just in case. I've been around long enough to see before the pump and new something was fucky. Your explanation clears most of it up!

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Thanks for the clarifications, I agree with pretty much everything.

The pain is that MANY new steemians get used to inflated rewards and probably will leave the platform as soon as the get back to normal.

I don't know how "painful" this would be. And I refer to us, those who are hustling here since STEEM was 10 cents.

Do we really need "wow, nice post" comments to clog the blockchain just because we need "users"? I don't really think this is the kind of adoption that will push the platform up. On the contrary. With all due respect to the efforts of many of the newcomers, I would really think we would be better off in a smaller, but more articulated company.

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I would really think we would be better off in a smaller, but more articulated company.

NO
Ten times NO.

We desperately need a simple quantity of user even if we sacrifice quality a bit. The sheer numbers is the power of any social media. Numbers drive adoption further and bring businesses into the network. Right now I prefer 1 million spammers to 10k genius-level crypto-folks. Because no single company will expand its social-media efforts into the space where are 10k active accounts.

I'd said no matter how much I love Steemit but if we won't reach 1 million active users this year I get my investments off the table.

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chartoftheday_11882_number_of_subreddits_on_reddit_n.jpg
(from here)


Have a look at the first 4 years. reddit followed pretty much the same exclusivist / elitist community style steemit tries to implement. Also, this charts really shows what I understand by "long game'. The first 4 years on reddit were absolutely rubbish, I agree, because the community was so elitist. But that core of elitist members generated a stable-explosive growth once they got enough "weight".

Numbers never lie.

Of course, we can gently agree to disagree.

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Nice chart. But steem has much less than 8 years to reach 1 Mil of users.

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what is it at right now? user total?

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So are we on year 2 right now?

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SBD pump and dump started happening every Saturday night through Sunday night since August.

But, I'm all for getting rid of voting bots and automated voting.

This is the time we sell our sbd for Steem while we can afford it soon enough we won’t even be able to buy it

I wish I could force my 1000+ users to read this and understand it.

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I read it ... Thanks and I learned a lot. .... I will also Resteem. We will see how many of my 2000 followers read it and understand it.

I like what you said about the market being right. I agree.

For the life of me, I cannot figure out why someone would pay $3.50 for something worth $1 of STEEM but hey, I am not the one doing it so I dont have to understand.

I believe we just let it go. At some point, the amount of SBD out there will reach a point where the market crashes. I dont know what the point is, I just know it exists. Is it 15M? 20M? 40M? Whatever the number is, we will hit it.

The way I look at it is how much STEEM does it take to pay back the SBD.

When STEEM was $.80 and there were 3.5M SBD outstanding, it took 4,375,000 STEEM.

Today, with 10M SBD, STEEM at $3.20 requires 3,125,00 STEEM to clear out the SBD.

So the ecosystem's liability is actually less.

To me that is the important variable since this ecosystem prices all in STEEM.

How much further is debt is the ecosystem? In terms of STEEM, since November when STEEM was $.80, the debt load is actually less.

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I believe we just let it go. At some point, the amount of SBD out there will reach a point where the market crashes. I dont know what the point is, I just know it exists. Is it 15M? 20M? 40M? Whatever the number is, we will hit it.

Out there?

The way I look at it is how much STEEM does it take to pay back the SBD.

Why?

How much further is debt is the ecosystem? In terms of STEEM, since November when STEEM was $.80, the debt load is actually less.

Debt to who? Who's debt and What for?

Suffice it to say I take it that you think that STEEM is some kind of "commodity" backed currency while SBD is some "debt/fiat" currency, why you think that those tokens are distinct as that boggles me because they are created by the same function, hence why wouldn't in essence and form be the same.

Loading...

Solid Post @dragosroua!

The longterm plan should be, to get as much STEEM for SBD as possible.

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Yeah but what @dragosroua means here is that if for example next week the price of the SBD is 20$ with every reward from the posts you can buy 20 times more steem.This situation drains the platform. I don’t know how many have noticed but Steem has a circulation supply of around 268mil. At the current point we are almost at 251mil.3 weeks ago we were at 249mil. So do the math and see...How long will it take until their is no more steem to be mined? Then we will all face the situation of which you won’t get any steem unless someone sells.Which might be good from a point of view because that will be the time that steem will really start rolling. So what you say has a point...for as long as there is still”free” steem out there

I will give this post to my landlord. I'm she she will be happy to wait 5 years for the rent. Many thanks :)

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Relying on Steemit - an experimental, beta stage product in the highly unstable field of cryptocurrencies - to pay your rent is like relying on lottery to pay your rent. The odds to predictably succeed at any of these two are equal, at this moment.

The only difference is that in Steemit, the longer your play the game, the higher the odds to get something in return, whereas in lottery the odds are always pretty much the same.

Calibrating your expectations would probably help. Also, not giving up your day job yet, or quickly finding one if you're out, will also help big time.

I'm still keeping my day job too, although I'm investing a solid 2-3 hours per day in this toy.

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Welcome to my life of poverty since losing everything else when I lost "Half My Size" in in 2011. The fallout from my extreme weight loss has been even more extreme.

Friends, family, work, my home - it all disappeared when I lost weight yet somehow I still now do everything I can to help other obese people like me lose weight. I hope no one else has to go through what I went through, but the obesity stats tell a different story.

I moved to Thailand to cut expenses among other reasons. At least most of the people I encounter here are thin and healthy.

I am on many other platforms besides steemit. I have written books, coach online and in person, and get affiliate sales through my work. Every single month, my financial life is a struggle. Steemit has been a huge bright spot. I admit dropping balls to be more active here in the last months, but this has been a huge money maker in the scheme of things I do.

Through an author group, I found out why my books stopped selling in about October - they were all pirated like those of many of my friends. One book that used to sell 5-7 copies a month is now being downloaded for free on many sites - 100's of times each month. I looked into the process of trying to fix that just long enough to decide to try harder on steemit instead.

I am almost done and ready to publish my 5th book - but why should I do that if I can drip it out here - actually help real people who communicate with me - and make money at the same time?

There is no day job when you are an old crippled lady accountant. Especially not if you lost all your weight and all the other accountants are still obese. I could have gone on disability back in the states and chose not to go that route of govt handouts. So this is what I do.

I have been on 5 platforms that failed and disappeared during the years I have been doing this. I assure this is a worry for me with steemit as well. This is why I will not be an investor in the sense you mention in your post.

But right now - it's the best thing I have going and I promote the place everywhere I can so hopefully it will succeed. The vast majority of my content-creating friends are just like me - scrambling each month to keep going with our passions. If we come here and make money - then we keep trying - beta or no beta.

came to learn about crypto, peaked my interest with rewards, stayed for the content. simple, i believe in the platforms people, intent and incredible minds - the proof of brains here is REAL! :)

I was missing this kind of post friend... Hope it reaches the complete steemsphere.

I want to use the platform to take Steem to low income communities in Romania, help others write quality content, support and curate them, and help them get to the rewards, while they could get their voices heard and for some of them it might even prove to be a way to get noticed and land a job or educate themselves. You know the state of the affairs in our country and how uneducated people are forgotten and manipulated into voting the wrong thing every single time. I feel that this would be the long game and the reduction in rewards would hinder it. I feel I am in the long game but for my project it's not that good of a news. Also, how do you think SMT will fit into all this? Thanks for supporting us and representing us in such a good way here :)

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I feel that this would be the long game and the reduction in rewards would hinder it

Agree about the long game and I like your vision. Education is key. But I don't see how rewards reduction will hinder it.

Also, how do you think SMT will fit into all this?

In a way, SMT can play the role of SBD now. If a certain token issued on the STEEM blockchain wants to go to the moon, so be it. But SBD has a very special relationship with STEEM and too much of SBD and STEEM mingling is not good. SMT will be less "coupled" with STEEM, hence it will go as high as people will want to.

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It's the human nature to balance work and rewards. My problems trying to push Steem into low income communities come from:

-distrust in general( of social networks, of the income source, of the technology and of cryptocurrency)
-basically they didn't even start to contribute and they are afraid that the bubble will implode with their future worth :)
-the possibility to cash out( they WILL cash out every single penny at least for the first couple of months, I am sure of it) They don't have access to crypto markets and just want an easy way to get that money out. Trying to convince them that crypto is the future is useless since they can't buy bread with crypto and switching their communities to crypto and changing the way they all think is a not a real option.

I will seek more answers, maybe we can try and help them somehow.

I think as steem becomes more desirable there will more pumps by the people who slowly accumulate SBD and then pump its price to get cheap steem.

I've been pondering this too, but I don't understand all the ins and outs of how the currencies work. I can see that a stable SBD is better for the platform and I want to see it have a future. I rode the low times too. I was building a following and reputation even if I wasn't mashing much. It's not all about profits. I want to see millions benefit from Steem and not just an elite.

Is it possible that some whales pumped SBD so they could make more here?

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Is it possible that some whales pumped SBD so they could make more here?

I have no confirmed information about it, but it's plausible.

I can see that a stable SBD is better for the platform and I want to see it have a future.

Good call!

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https://prestonbyrne.com/2014/08/17/dont-walk-away-run/

https://prestonbyrne.com/2017/12/10/stablecoins-are-doomed-to-fail/

https://prestonbyrne.com/2018/01/11/epicaricacy/

He has some other articles on stablecoins, and I share many of his sentiments on them. They're all shitcoins. I'd advise anyone who wants to be more informed when future discussions on stablecoins like SBD come up to read this guy's blog, he has a lot more great content than just these few links, but these are more specific to "stablecoins". Even vitalik wrote about how a stablecoin could be made back in '13 or something, but he also wrote that it would fail.

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Holy crap, now I want some BitMarmots.

I am here for the long term...I am constantly powering up as I believe in steem...

Perfect understandable explanation which a lot of people are not aware of. Let me resteem this for more understanding. Yes it feels like the rewards are kinda ouch at the moment (I only started half a year ago), but if in the long run steem will make us all bank bigtime..Id rather have the 'days of hunger' now, and benefit later ;)

We can imagine many things happening along the way but the end goal is for each of us to have an opportunity to reach others with their thoughts and ideas and make them complete! What I mean is that with decentralization we should all be able to earn our living by doing what we're loving!

Words we use are spells! Have a great day!

This stirs one to some deep thinking. The long game! It's pretty impressive that you sticked with Steemit even when the price was that low. 10 cents? I bet 96% of the users on steemit today woudn't have wanted to join even if they heard about steemit at that time. Now see how far you've come. This motivates me!

I cant say whether I want the price of SBD to keep increasing or go back to the $1 at which it was pecked. Whatever is good for the continual existence of this platform, I am in support

Great article @dragosroua. It is really helpful to see the longterm view and history of Steemit and also of Bitcoin. I had not heard of the Satoshi Dice thing before.

I got in in December so am used to "higher" rewards although, of course, it is all relative.

This perspective is really helpful to me as I ponder about what I want to do here and how much time I want to invest etc. A couple of big questions for me at the moment, now the initial excitement has worn off.

Learning about this is a great foundation for those sorts of questions. 😍

In last 2-3 days I saw few witnesses are worried about SBD price and was happy that it is going down. I align myself with this thought. But on the other hand its the reason of the popularity and quick rise of Steemit and other apps. I believe we have to behave like a government now - keeping interest rate high enough to keep deposits coming, low enough for businesses to increase investments.

Hmmmm I have always been an advocate of higher sbd prices but this is really a hard nut to crack now. With all you have said, I am beginning to think otherwise . I think I would prefer sustainability to the quick Buck mentality though. Thanks for this @dragosroua

Nice comparison between past crypto events and with what we are involved with today. Never heard about Satoshi Dice until you mentioned it and Googled it a bit. Gambling can be so addictive :/

Craze will die down in the long run. Just need to believe the light is there at the end of the tunnel. Holding steem long term and seeing where this goes in a few years. Trying to enjoy the ride. Thanks.

Very educational! Ive learned a lot reading this. I also realize i still have a lot to learn when it comes to steemit! Thanks

man, thanks for spelling this out for us. as someone who has only been here since december and has spent a lot of time "learning the platform" and informing myself, this is super interesting information and i'm glad you're putting it out there.

i'm a person who loves to understand and see the long term picture and i appreciate learning from you and your perspective. i really don't see this information out a lot around steemit and i think it should be. resteemed and thank you again.

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Wow, I'm glad you resteemed this, otherwise I might have missed it. Good information, there is so much to learn it is mind boggling. Thank you,

I've been wondering lately about this high SBD price. On the one hand I don't complain because it helps to build up my SP what makes curation more rewarding.

On the other hand a stable currency pegged to the dollar withing the steem ecosystem is a good thing. I gives stability in a highly unstable market. If you for example want to start a shop and sell some steemit attributes, a stable currency gives your shop more stability instead of a currency that fluctuates extremely whiting a 24h timeframe.

Thanks so much for the post. I joined steemit just under a month ago and when I did, I joined for exactly the reason you stated goes against the original purpose of the platform. I joined because I "heard" you could make a quick buck. At first, I watched ever YouTube video that provided all the tricks and tips to get followers, post comments to articles I barely read hoping for a high payout, etc. Over the following 3 weeks something switched and I realized that this was not simply a game to play hoping for a payout. I was a community trying to thrive and trying to provide great content now and for the future. So, I have changed, Steemit changed me and I am so glad it did. Thanks again.

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I'm having something of the same experience, with the addition that I'm still seeing this as a viable content distribution vector to add to my toolkit.

I love the way you ended this "happy we took the hit", definitely playing the long game and people need to realize that the rewards on your account just keep stacking higher and higher generally if you really LOVE what you are posting. Plus you just got invest into more steem power :).

If you're cashing out then yes I agree that you're playing the Satoshi Dice version of Steem. But what of those who are taking their SBD and powering up? I think those people will be quite happy with their decision in a few years time, maybe as soon as next year.

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It is still better to have SBD at $1 and for STEEM to be worth more. With SBD at $1 or lower, then people will lean towards 100% Power Up, which keeps unneeded debt out of the system and increases the price of STEEM.

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I hadn't thought of that, but it's a very good point. How much do you think the bid-bots are influencing the demand for SBDs?

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They are probably causing most of it and there is probably a relationship between the big bot owners and the pumping and dumping of SBD.

When I first joined up what I liked about steemit was the community, that has not changed and the core is still the same for me.
Making money is nice but I did not join for or because of it.
Here at steemit we have everything folks would find all over the web.

I don't need to go to fedbook, yt, twitter etc, I can find it all here but beyond all that it is still a community with a very home town feel to it where we can use our stock to support the infrastructure while making some money or blessing someone with a hand up when needed (you will not find anything like this at fedbook or any other platform).
I look at steemit as a long term place to spend my time and I do not see it as a flash in the pan, here today gone tomorrow but in terms of 5-10 years and beyond.
I enjoy knowing I am not the only one thinking in those terms.

I am now taking advantage of the moment I still can, and convert SBD into STEEM for more SP.

I'm not sure if this will be possible or if this is safe to the environment. But why isn't adjusting the payout percentages for the entire platform considered a solution today? Like for example, if SBD starts going up above $1, the payout should increase in percentage for SBD and decrease in STEEM. In this way, there will be an influx of supply of SBD and the demand will decrease. It may be complicated but I guess it may work to keep SBD price from getting out of hand if payout percentages will adjust for all users as needed.

One problem that I see though is the huge chunk of STEEM that is currently sitting on the exchanges, especially in Poloniex. The prices can easily be manipulated by a few whales on exchanges. I hope that there will more incentive to those who keep their STEEM powered up.

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Like for example, if SBD starts going up above $1, the payout should increase in percentage for SBD and decrease in STEEM.

that's exactly how it works now, it's done via witnesses' price feed. But the supply increase is inherently slow and the effects are seen over weeks or months.

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Ohh, I didn't know about that. Thanks for letting me know. If that's the case, people should start realizing that SBD is bound to correct soon and they should start powering up or buying liquid STEEM now when the value of SBD is still high.

seems like i am in this long game just to be a part of it really hoping that this great platform don't collapse

I'm definitely in for the long haul.

This was helpful, although I got in to stay in for the duration not the quick buck. I too have noticed weekend pump and dumps, someone needs examine the roles of these bots. I have never bought into upvoting for dollars with bots and I dislike the idea intensely. We need more witnesses like you who care about the success of the platform.

I'd love for SBD to be stable. Stable at 7 or 8 dollars, so the little people can actually support themselves and their project, and not rely on the mercy of whales and the bot racket.

Interesting take on things... maybe the SBD was pumping as they are more easily trade-able, without trade offs. I think Steem will definitely rise well as more larger name people are mentioning it far more. And in the end, are not all cryptos long holds?

if this will damage the steem value over the time then it is of no use we may make instant profits now but it will all be worthless no meaning at all looking at the future perspective but now everything seems to be in markets hand the supply think might work but not that much

I am not technically very well aware of the Steem ecosystem but I think the value of the ecosystem will also depend upon adoption by the masses. A high SBD brought in a lot of new users and has the potential to bring in many more. A hard peg to the USD which will reduce the rewards will negatively impact user growth and retention. Don't you think that can be harmful to the platform as well?

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Nope. The "high" SBD only happened during the las 3 months and, in all honesty, the influx of users it brought is not necessarily the best one. I had a lot more meaningful interactions before the "wow, nice post" comments era.

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yes, I get that. I am a nobody here on Steemit and I have already started to get my share of "wow, nice post" comments, haha

I really believe in Steemit and what they are doing that why i also believe both in SBD and Steem

i see here very big potential for the long term

i'm looking on this for long term investment like i'm looking on a lot of other coins

Pump and dump is profitable to those who benefit from it. Its similar to the "boiler room" created in the stock exchange by Jordan Belfort aka Wolf of Wall Street

Mate I don't make allot...but what I do, I put into Steem just about straight away (I don't really care about the conversion or playing the market, as its pocket change compared to what Steem could and should be worth).

As soon as the SBD comes in, straight into Steem and power up for me...

Even if you know nothing of the potential of Steem, it's just like a lotto ticket but 10,000 times more likely to go off and you actually have fun making it on Steemit :)

The "inflation" is good for the image of Steemit. It might not be good for the reward pool but I can say that even if SBD returns to the original price, many will still stick around because of their positive experiences so far. So yes! I'd say that the inflation is a good thing

The $1 peg was broken and the token traded at some point around $13k

that would have been nice! :)

Isn't SteemIt being Marketed as . . . "Post and get paid? "
Am I wrong in reading that you think this is a problem?

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Very wrong. I already said it in the post:

There's nothing intrinsically wrong with getting paid, but when you get paid in the wrong way, you have to stop and ask yourself: "if this is not the right way to get paid and I'm still getting some money, how long this will last until it gets corrected?".

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Thankfully I don't get paid at all.
I'll reread . . . it's early.

Thanks for the reply.

H. G.
edit: third time
No, it still comes across as you think that getting paid to post is wrong, and the influx of newbies are a drain on the system.
I've been here longer than this my Henry-Gant persona . . . and I see the rise in SBD as an uniformed buy. A large chunk of monies that poured in looking for fast gain; that is the universe-crypto- we have chosen.
The market should straighten this out, as it is doing.
On another note: aww . . . never mind, I'll hold my tongue about the marketing.

Wow, nice post :)

Because SBD is just a debt-based instrument and it relies on STEEM, it's not backed by hard US cash and it's not the token created by the STEEM blockchain. It's just a smart contract eating out from the STEEM supply.

What does SBD is just a debt-based instrument? Can someone explain it, ​please?

Yes. I better not have spent like 100 hours trying to figure this out for nothing. lol

Yes i love steemit and im planing for long ru.ln..nic post.

May we all see SBD reach $1 this month.

@dragosroua
Iam from india... We crypto users r stuck by govt decision. Even media is spreading negative news abt crypto. RBI has warned many times abt risk of cryto investment. A day before 2 exchanges have shutdown from india.. I want to invest in crypto.. But fear of govt decision.. Dont know shld i sell my crypto or remain pause.. What u think is best way?

I think your exactly right I hope others take notice. I for one have been powering up pretty much all my rewards to SP and am defiantly in for the long haul, while friends I've started with, with the same account size and following have been selling pretty much all there's SBD, the difference is massive with my account around 5kSP and there's around 1k SP. Althought they got some sweet things and cash along the way I do think that in the end I'll see a much bigger reward.
Secretly I do hope for another nice SBD pump along the way, so I can have another chance to do some serious powering up!

Thanks for sharing your perspective on this, many still get confused with SBD and STEEM. Especially after the broken peg.

Maybe some of the whales would had pumped it at that instance for there own benefit. And now maybe they would had cashed them and thats why the market is showing such a destablized trend. However we could only pray that platform should not show any further growth and keeps on increasing so that everyone of us benefits from it.

Definitely playing the long game here; looking to gradually build a "core fund" for my organization. I do see a lot of what some people are calling abuse of the system and the part that mostly scares me is whether there will even be a Steemit two years; five years from now, given the rather greedy and selfish-- and very short term oritented-- approach many people seem to be taking.

Yes, definately long term.

But to make a note, the US cash isnt backed by anything hard other than people's trust in it. Gold, silver, etc., has value. Spread your portfolio and be diverse.

Hold on to that which will be with you long term.

People, land, gold, a system... Your very own mind-set of what success is for you!

Be the light, and assist others along the way.

Much appreciation!

Very nice my friend

Thanks for the info. I'm afraid I have a good deal of trouble understanding the technology involved.
I found this article helpful and interesting.

Posts like this reinforce my choice in witness. I will hold my hopes for peer to peer rewards.

It think the price of Sbd is to fear some people who don't know about our their post will make good money whether good quality or bad quality. The price of Sbd will so rise back around june only the strongest can make it till that time.

@dragosrua thank you for this informational post honestly it creeps me out because I have not cashed out the rewards yet and I see it going down each day but I love writing and I believe it will rise up again because as you said it will it was created from a vision and vision to me is more important than the money. Of course we all need the cash but in this life we survived for visions no matter how impossible they seem

The more steemit develop its community, the more powerful $Steem in exchanges

very good post,@dragosroua

Thank you for this information - I am also here for the long game - I have a lot of faith in Steemit and that we will look back in a few years and really reap what we have sown so to speak.

Nice you posting

So to play the long game you suggest we hold steem / steem power and not SBD as the steem will hold more value as the SBD work back down to the $1 peg area?

wow, nice post Food for thought on what perceptions of the drop of value that I, as a new user, will have to stay aware of.