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RE: Day 1 of Why STEEM is Undervalued
Just checking, does MAU stand for Mean Active Users?
So, your argument is:
- Networks have increasing value based on increasing nodes in the network (up to an limit).
- Steemit is a network.
- Steemit is a growing network.
- Therefore Steemit has increasing value.
The assumption here is that the mean active users will never plummet or be massively corrected.
To back that up, I'd be interested in seeing the churn rate of accounts into inactivity. How many people jump on the network only to leave some time later?
Great question and digging into the inactive accounts!
MAU is often used to gauge most any user platform such as Facebook, Twitter, and Reddit. It stands for Monthly Active Users. If a user has not been active in any way such as post, comment, upvote in excess of 30 days, then they are no longer counted in MAU. These accounts may or may not be dead, but the lack of use determines if the account should be counted.
Let's take Facebook for example. They have long since had more accounts created than every living human on earth. Clearly the total accounts are not the way to gauge the health of a social media platform. Last time I checked, Facebook had somewhere around 1.7 billion MAU. That was before the Facebook selling information scandal. There are more than 7 billion humans on earth. Since there are more accounts than humans, then there must be over 5 billion accounts that are inactive.
Each platform has different retention rates. MAU is a way to help compare the health of the different platforms.
We have to be careful of using Value for replacement of price. Value is what a network is valued at. Some business networks have value in the assets, such as buildings, land lines, radio networks, employees, merchandise, sales, etc. Facebook has very little assets and employees. In fact, they often hire freelance work instead of keeping a staff of programmers. It is extremely low overhead. Facebook value is primarily based from advertising, sales, and services. That creates incredible profits for Facebook. That is why they are in the top 10 highest market cap companies in the stock market.
STEEM has several platforms that can organically grow. The difference is these platforms don't have to rely on sales or advertising. The value is in the network itself, and the price of STEEM will very likely follow value.