Steem Needs a Plumber!
Steem needs a plumber in order to fix the leaky pipe that is draining away Steem's value. The inflation is just leaking out of the pipe, and it's a huge waste of purchasing power.
It appears that the demand for Steem is constant, if it would not be there then the price would have reached 0 already. So we know there is demand for Steem. The problem is that it's constant. While the inflation is also constant, there is only X amount of Steem being minter per block. The problem is that the demand is smaller than the inflation.
So even though both appear to be constant, the fact that the demand is smaller than the inflation, it makes the Steem price go down, in a stable downtrend.
https://poloniex.com/exchange#btc_steem
THE FIX
I believe we should focus on SBD. I have changed my mind on SBD now, and I think SBD can be the magnet that will pull value into the system. How? By adding utility to it, and creating a P2P economy built on top of SBD.
- Creating 3RD party services for Steemit, that are financed with SBD to buy/sell there: http://steemtools.com
- The
Promotefeature is good, but I think it should be expanded, to include more features - A P2P marketplace built on SBD, like Openbazaar (or perhaps ask them to integrate SBD): https://openbazaar.org
- More features, including paid features for Steemit, that are to be paid in SBD (premium features, which is also good for the Steemit company (@ned), to give the company a stable income)
C'mon, we need to make SBD a valuable currency. It has no transaction fee, and it confirms very quickly. So it should be ideal for commerce. The perfect spending currency in my opinion.
Not to mention that SBD is the only thing I understand! Good post, upvoted!
Thanks. Althought SBD seems complicated it's actually easy to understand.
It's the other stuff I don't understand like "power up & power down"...SBD is pretty straightforward.
That is very simple. When you power up, the Steem is sent instantly to a smart contract and held there, and then you can use for curation ,etc. When you power down, then it is withdraw from there over the course of 4 months.
One more question, if you don't mind. When I upvote, a box pops up that asks for a percentage...what's the distribution, or how & what's distributed (I hope that makes sense, you can see how old and dumb I am)?
That is where you choose how much vote power you allocate per upvote.
If you want to maximize your curation profits then always chose 100%, until your voting power stays above 0. Make sure you not run out of VP, but I think it should be plenty there if you vote manually.
Check here:
https://steemdb.com/@richq11
Totally agree that the use of SBD should be multi-use. The most valuable commodities are multi-use. I would also go so far to use Steem also as a multi-use commodity. The functionality of the blockchains needs to invade other markets, besides social-media.
Yep. I hope Openbazaar will integrate SBD or become integrated in Steemit eventually.
Openbazaar will need some dedicated servers so that people can access it from web, or phone. Then Steemit can just partner up with them to integrate the P2P economy.
We have the users, they have the P2P economy platform. It could be a good partnership.
you're right
Hard fork 16 dramatically reduced the inflation. The inflation is what actually pays the rewards/interest on the platform. If inflation is zero, then rewards/interest is zero.
I'm glad you finally came around. This was the whole point of SBD in the first place. We just don't have the P2P economy based on STEEM/SBD yet. That'll take time to build. But yes - SBDs are far more likely to be used as a currency than STEEM. I believe that was the purpose of having the peg.
Yes, and I think it will be further reduced in the next one after POW will be eliminated. I am fine with the inflation as it is now, I would not touch it further. The supply side is already stable.
Now we need to work on the demand side,as I described in the article.
Of course, I am a huge fan of P2P decentralized economics. I think it will be the next big niche for all online entrepreneurs.
I am still skeptical about SBD's peg system though, however I think if the demand will start to come, then I don't think it will be an issue. We will see how it will work out.
can you elaborate proof of work , what will it do
POW is the mining system. But since Steem is largely whale based, then it makes more sense to make it POS.
POS is very advantageous when you have trusted whales holding the network, who have also a large stake in it, and since they also hold the risks, they can be more trustworthy.
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I am pro SBD too. I think is would be perfect adding SBD to business or even businesses like steemsport to be created off of the steemit platform.
Make that happen, spread the word. I am sure a lot of new businesses will have an opportunity with SBD. We have the social structure already, we just need the economic one now.
I shall, actually I've already taken the first step to adding my business to this new economy! I haven't really had time though to make more posts though. Yeah I am excited for the the growth of this economy. Peerhub.com is already a great start!