RE: Where The Money Comes From - "Digging Deeper Into Steem" (Part 1)
Very well-written! Personally, the price disparity for Steem/USD between the internal Blockchain market and the external open market is what attracted us to make our original investment in the ecosystem.
We've converted part of our holdings to SP, but we hope to earn a profit by holding (and possibly converting) SteemDollars. As the White Paper states, it's like we're lending credit to the network, but we're protected by the built-in conversion measure if there is a large difference between internal and external pricing.
After we convert, we can either reinvest into more SteemDollars if it's at above-market prices, or cash out into Bitcoin. It's just such an amazing concept.
It takes a couple of days to really get a feel for how Steem works - and why - but once you do, it's a no-brainer to expand your influence and presence in the ecosystem and earn a profit doing it.
Thanks for sharing.
That was exactly my first 'trading' perspective, taking advantage of the arbitrage opportunities. It's still pretty lucrative now, with the Steem dollar trading around $0.8 earlier today after having fallen from $1.40+. The internal market dynamics are very interesting, especially after the removal of the liquidity rewards. Could be plenty more profit opportunities available to stabilize the system in the coming months.
I really - REALLY - hope they add a referral system, and the marketplace, soon.
The marketplace, for sure. I think there was something about a referral system in the works. Not entirely sure if it would be a great idea. It all depends on the implementation.