Steemit market won't be able to sustain a longterm growth but there is a solution
The concept of steemit is pretty simple, blog and earn. What if everyone wants to just blog and cashout their earnings? What if there is no more need for people to power up? At some point people are only going to cashout their earnings and in the long term the market won't sustain.
Let's say steemit explode in user base, millions starts to use to platform, earn and cashout their earnings. How are we going to sustain this? There is a few ideas but I believe @ned @dan need to stick with monetizing the platform.
Monetizing a massive blogging platform with Advertising, I think I have read somewhere that steemit is going to be ad-free but that's just impossible in the long term if you don't want to see steem being worth only a few pennies each!
Advertising
Facebook makes over a billion in profit every year exclusively with advertising, reddit makes around 10 M a year in profit with advertising. Why can't steemit jump on board and share in this big advertising industry?
The market will need a constant flow of fresh money and this is not going to happen with people that have no access or no knowledge of bitcoin. Regular people who don't know about bitcoin are just going to join the platform and start using it like reddit. This will give value to the platform itself but it will not bring in more "buy orders" into the market.
If we keep on this path steem price will inevitably keep falling and I can't say I have any complain with that, if steem is worth just a few pennies , people like me with a smaller budget are going to be able to purchase a reasonable chunk of steem power.
There are other ways to bring in market support but we are not doing so by having people pay certain fees or even future services like the ( promote button) in steem dollar, this is not fresh money it's only money changing hands which will end up being sold at some point once again.
I agree steemit needs more monetizing to sustain itself.
You're incorrect about 'promote' funds going back to the market, all the funds @null receives will be destroyed from the coincap.
Thank you, I didn't know that. I though they would be used to "maybe" fund further development features. But At the end of the day it will happen again and again just like the latest heavy dumping from the dev which has probably been used to get better servers. But if there was monetizing, they wouldn't need to dump and most big sells would be eaten by these ad revenue which could then be spread among all users on steemit maybe!?
Take a look at volume. The problem with the market value isnt on the supply side its on the demand side. It always has been.
It might slow down price depriciation if you kept a big chunk off of the market, but it won't reverse it or even stop it. For that to happen, you need to increase demand.
it isn't within their interest for everyone to just cash out and run so i dont think they will? :D
I am pretty sure that a lot of people seeing their first earnings are going to cash them out just like about everyone has done already. And im pretty sure the biggers cashouts which require biggers buy support are cashing out slowly so they don't destroy the market and their potential payout at the same time.
I don't think so.
I am sure there are many ways of monetizing and not only advertising. And collective mind of Steem users will find them. To my mind Steem is the best and the most modern decision in social networking. But, yes... Why not to think over advertising? I hate the manner Facebook does it and it's tricks are very agressive, but we can use some other ways. The idea is definitely worth of thinking over.
It's all about fresh money, even if they start building services inside steemit that can be paid with steem/steem dollars. This doesnt bring in fresh money thats the main problem I believe.
Maybe. We should use collective brainstorming. Steem by itself was not possible a few years ago. So maybe there are some decisions about fresh money too, but we just don't see them.
If there are, i'm looking forward to see them!
This money is actually burned and does not change hands (to the best of my knowledge)
Also with advertising, some companies may then wish to censor certain content or bring about agreements that may not be in the best interests of the users.
Also if steemit were to be publicly traded, it then has to sacrifice some quality to work on its bottom line.
I made a possible solution to bring some ad revenue through this feature.
Non Intrusive Video Ads Targeted Toward New Users To Earn $SBD & Steem
Steemit is self monetizing. The drip-drip-drip of the brand new mined steem condensing into everyone's voting power.
I don't think you get that part.
Steem is NOT LIKE FaceBook or Google. Steem is a BlockChain.
It's different.
I think you don't get what I mean, The market right now cannot sustain it if everyone wants to start cashing out without causing a massive crash. How do you expect a few hundreds btc to ALLOW and sustain bigger cashouts without crashing the market? The user base of steemit is pretty small right now and this is still a "livable" situation, but it wont be when steemit hits the viral world.
Nope. I do NOT 'get' what you mean. It appears to me that Steemit is self contained. Why do we need the outside world? What have they got that we want?
oh..by the way...Steemit is still in Beta. That's easy to forget sometimes.
it would seem to me that if you don't like it here...
lol what do we have here? Where exactly have you read that im not happy here? Did your father create steemit or something like that to the point of getting you butthurt over an exchange of opinion? gtfo
You can't just cash out, half of your earnings take 2 years to get your hands on. This was a smart thing to do to help avoid exactly what you are talking about.