Message to All Long-Term Investors. [And My Suggestion to Steemit Developers]
Dear Steemians, first of all, thank you for reading this! I don't want to take up too much of your precious time, so I will try to express my thoughts briefly and clearly.
I'm sure almost all of you know this Poloniex Price Chart. And it does not cause much joy. At least I can say for myself.
Why is Steem price falling down?
Because supply exceeds demand. Too many people are selling Steem right now. Why are people selling the Steem? The reasons can be many. As far as I can see it, the main reason is the lack of faith in the Steemit project. Lack of faith in the future of the Steemit.
Among those who do not believe in the project there are those who have never believed. They just came here for quick money. But there are those who believed but lost faith. And if this trend continues, it can lead to tragic consequences.
My suggestion to the developers (especially to Dan and Ned).
A few days ago I posted the idea of "loyalty points" reputation system, which will allow you to see those who don't care about the future of the project. How? Here is briefly my idea:
- The "health" status of Steemit World is estimated by three colors: green, yellow and red.
- Green means that you can withdraw money, that is, to do Power Down. Yellow means that it is not advisable to do Power Down. And red means that it is highly inadvisable to do Power Down.
- All Steemians will see this "health" status.
- If a person is doing Power Down, seeing that at the moment the system "health" is in yellow status, his "loyalty points" are falling. If the system is in a red status, but the Steemian is still doing Power Down, his "loyalty points" are falling very quickly.
- Those who has many "loyalty points" get benefits. For example, their post positions are marked with a special "mark of loyalty".
We will see those who deliberately do not care about the future of the project.
Those who continue to withdraw funds (do Power Down), seeing that the system is in the yellow or red status. We also will see those who vote for these people and thus help them to weaken the system.
In my opinion, this is a small but very important addition to the functionality of Steemit could significantly improve the whole situation. Importantly, those who consciously strive to develop Steemit will be able to do it much more efficiently.
In a free society people should be free to do whatever they want with their money.
If people are selling it is because they have decided in the last week or so that Steemit has problems. The way to address this is to sort out those problems. As soon as you put restrictions, just watch as people stampede to get their money out before they fall...
Well, I'm totally agree with it. My point is to give special reward to those Steemians, who're giving more then taking away. To encourage those, who believe that Steemit can develop into complete economic system. I didn't say anything about restrictions, actually. I'm talking about reputation system.
You're not against the reputation system that exists now, aren't you? It protects good authors. And I propose to protect good investors. That's all.
I'm strongly opposed to powering down having an effect on one's reputation (if intertwined with a loyalty system). The penalty of powering down is already built-in, inside the system: Reduced influence.
It is not ideal to create a system where you can get in, but you can't get out or are disgraced for doing so. We should promote the ideals of economic liberty.
As for the price trend, remember that those holding SP are also getting more coins while the price is dropping, while those who are in STEEM don't. The price means different things for different classes of investors.
Btw, if you told people back in June that in 40-50 days the price would be 0.0025, most would be ecstatic. Just because it hit 0.006+ doesn't mean that 0.0025 is a bad price.
I heard you, @alexgr, however, I proceed from the idea that the fruits of the tree can be harvested when it has grown and become strong.
But it is also not ideal to create a system where one group of people invests, and other - takes profit. It's a Ponzi. My point is to encourage those Steemians who are long-term investors. I think for them my idea is acceptable.
Well, actually, the price drop is frustrating for everyone, isn't it? Do you mean that those who hold SP rejoice when the price is falling down?
For some a 2-year-long withdrawal period is already an extreme disincentive.
Remember, if you don't allow people to pull out, then you are also disallowing money to be infused precisely because the investor will feel "locked". In the effort to maintain SP within the system, there is also discouragement to buy Steem (which will become SP) from outside the system.
As for the price, I mean that it's all a relative experience. Let's say it's early july when price was 0.001. Someone comes along and tells you: "In July 15th, the price will be 0.0015. In July 30th the price will be 0.0020. In August 15th, the price will be 0.0025". Wouldn't you be happy about this rise?
Now, what happened is that the price went from 0.001 to 0.006 and then to 0.0025. The end point is the same but the route is different from what I said earlier in the hypothetical scenario. Yet in the hypothetical scenario everyone would be happy and in the actual scenario people are "gloomy".
It's like bitcoin in a sense.
If you told people in 2012 that Bitcoin would be trading at 100 in '13, 200' in 14, 400 in '15 and 600 in '16, they'd be like OHHHH MYYYY GOOODD!!!
But it was the spike to 1000 and what appeared as a "loss" and "downtrend" later on that made the experience seem "sad". It's really about psychology and half-full / half-empty perceptions.
But for others this is normal. Their rights also need to be protected.
Have I suggested to forbid people to take their money? I just proposed to give additional rewards to those who keep their money in Steemit.
I really don't understand your logic. Please, look at the price chart. The price is falling down. It's just falling down, there's no place for abstract philosophical ideas about "relative experience".
What is the cause of price falling? What's your vision? Do you want the price to go up? Or don't you care?
As far as I see it, this is just a basic economic law. When supply exceeds demand, price falls. This means that on the market there are too many Steem sellers. Why do they sell? Because they don't believe that Steem will rise in price or they just want quick money. That's the whole kitchen.
If someone only sees the price, they are missing the whole point. If the price over the next year goes down 50% and my coins go up 80%, have I gained, or lost?
I have gained.
Yes, I'd like the price to rise or be stable, but I have the understanding that the coins we are being given as SP-holders to counter inflation aren't handed out for fun. They are done because it is understood in the design that we will be losing value.
Imagine the scenario where you have 1000 SP and in a year you have 2000SP. Price stable at 0.0025. So now instead of 0.0025 x 1000 = 2.5btc, you have 5 btc.
You cannot really make a steem-price comparison or apply classic analysis on motives when factors like these are in play.
Do you realize that the whales - investors could already get a return on investment and continue to hold the SP?
https://steemit.com/steem/@dantheman/curation-rewards-and-voting-incentive
Enough to use the bots or hire ghostwriters, take the profits at steem and steem dollars, exchange it... They are already able to receive return on investment and profit. Why would they be interested in the development and growth?
The price means different things for different classes of investors.
Please explain what do you mean.
https://steemit.com/steem/@alexgr/remember-evaluating-the-price-of-steem-is-different-to-other-projects
I read your post. If I understand correctly your point of view: the fall in prices offsets the increase in SP. But it is not! I invest in steemit when steem was no longer 0.000000.... And now, in fact, I lose money. Who else wants to invest in uncertainty? Especially when nobody is going to pay attention to this issue. All I want to say: the fall in prices is not a healthy process for a prospective project. The fall of prices shows loss of faith in the project by the outside world.
I understand that this is the perception (in the outside world), but you have an inflating currency at something like 250% from what I read. If you keep price steady and you also get 200% up on your SPs, then ...you triple your money.
So the system is designed in a way where we don't get 90% of the inflation rate for fun. It is because it is expected the price will drop. Whale investors may create upward spikes for short periods but this is not the normal.
OK. I heard you. Excuse me, I have a personal question. Why, if so profitable to invest in SP,you keep most of your funds to Steem Dollar. Maybe because they are very convenient to bring and you have nothing to lose in their value?
Interesting idea and you make some good points. I am in it for the long run. Though I did power down when I was a noob not really knowing what it meant or how steemit worked. But I learned and now I only ever power UP. :)
Thanks for your comment and for your optimistic attitude, @lauralemons!
Surprisingly that this idea of "loyalty points" is not perceived as something useful by some Steemians. After all, this would further encourage people to invest in the project. What's wrong with that? :)
Perhaps, those who want quick money, will be against this system. However, I believe this can actually be helpful in the long run.
It seems helpful to me but I definitely have both my feet in the (Steemit) door. I can see how the idea would be controversial to some.
I fully support you!
I grow house plants. For example Basil. If I cut down the leaves too quickly, the plant does not have time to gain strength. Steemit as well. If no one will control the pumping from the project money, the parasites will thrive at the expense of long-term investors. Who wants to be a donor for parasites?
Is there someone who really believes steemit can change the world?
These people should be held responsible for the fate of the project. Someone's greed's destroying everything. Should we just looking for this?
Exactly. I think this idea will appeal to those who hope for the long term. However, it does not appeal to those who want fast money in any way.
Good post. I'm not sure I agree with your suggestion, but I've upvoted it because this is a good discussion to have. I'll remember to keep an eye on your blog.
Nobody wants to be a pawn in the game of whales.
And nobody wants to be a pawn in the game of parasites!
That's right. But honestly, I believe that the majority of the whales want the system to grow and develop.
Thank you for this! upvoted
Thank you for support!
The supply and demand are as always ruling the market. There are not many people looking to buy steem ATM, and I think there will never be many unlesss some big capital tries to come in.
I doubt that lack of faith is the reason why they are selling. Everyone that gets a piece of it wants to try and see if it works for real. Many of the people don't have clues about cryptocurrencies and like me are trying to get their hang of it.
I believe that there will always be lots of people selling it but it's just as it is and we can't change what they do with our plea. Getting half of reward in SP also makes people spend another half on what they think is best. Don't forget that lots of countries in the world are struggling to live and when they see dollars are made in such an "easy" manner they want to get it out ASAP to survive. There are also lots of speculators who live from daytrade.