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RE: Clif High's predictions for STEEM in bare naked Wealth report – we have a challenge here guys

in #steemit7 years ago

Good review thank you for sharing because it is helpful to consider the downsides that yes it is challenging to just sign up with no Steem Power and make more Steem. That said, the same challenge exists with most other cryptocurrencies too!

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Thanks Jerry, yes that is true and in general nothing bad about it. Popularity usually increases the likelyhood of being successful. And popular people worked hard to become popular in the first place. However, the focus of Clif's statement was a bit different. STEEM is powerful and the platform itself receives huge support, hence will endure also through tough times. The currency, however, has a major vulnerability in its current form by being mainly based on popularity. The internal popularity algorithm. Maybe there are some possible adjustments to reduce that vulnerability?

Another point from Clif I missed to elaborate is, that the value of STEEM is not coming from intrinsic value, but mostly from external investments. Means, people like Jerry and myself, wo buy STEEM in order to have a bigger impact on the platform. In other words, if at some point in the future it becomes less attractive to buy newly created STEEM on exchanges, the value plummets. Which makes it necessary for the platform to stay in the news and minds of people constantly and increasingly and also the top 1% of whales who own the vast majority of all coins to not cash out too much. Otherwise we see a 15cent STEEM again. So, every promoter of STEEM who is bringing in new stakeholders is vital for the exchange value of STEEM. Thanks for doing your part so well, Jerry. You also get a good reward for that : )

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