You are viewing a single comment's thread from:
RE: Secrets to be successful in steemit. Carla Gonzalez.
Cool Post :) upvoted
Particularly like the advice on trying to build up SP :). Resteemed!
Cool Post :) upvoted
Particularly like the advice on trying to build up SP :). Resteemed!
yes me too! loved your post. Full steem ahead. I will resist the urge to shop. Save now play later :)
Yes. And, if only everyone would just store as much as possible in SP instead of cashing out, then the would price would surely go up!! ;). Which would make everyone holding SP richer (on paper, at least), make the payouts increase, and therefore attract more users ;) I.e., virtuous circle.
Ok, so, some people will always need to cash out, and this includes witnesses paying for server costs, and writers trying to use the platform to make a living.
But, the 'running costs' should be way lower than bitcoin for example because the network is very efficient. It requires something like $15million to be spent by new buyers of bitcoin every day just to keep the price at the same level (in order to pay for mining costs)! Yet, bitcoin is marketed as a great thing to save money in. I think SP could be a better choice as a store of value/investment (while it can continue grow the user base) - but maybe this requires some better marketing / or something!, to get this message out :)
wow! I had no idea that the running costs are lower. Marketing this would be a great thing for Steemit. Bitcoin has first mover advantage, and since they have been around longer, they gained more credibility. As Steemit continues to do well, I have no doubt that people will value Steem as much as the do Bitcoin. Thank you for the insightful comment. I just learned so much, just like that! Aww snap!
Yes, there is no mining - it just requires 20 people (witnesses) to have a server running! Actually, I'm really wanting to try run one myself....not sure they have them here, but with the crypto 'Lisk' I believe there are witnesses that offer 'cash back' to those that vote for them. I'd to see this here, because if the price of steem is high then witness pay is a lot more than is actually needed to run a server! im curious to look into doing that here, and seeing how well or not well the idea might be received :)
It is true that steem has around 10% inflation which is scheduled to reduce by around 1% per year until it will remain fixed at 1%. Whereas bitcoin inflation is around 4% and is halved every 4 years. But the inflation comparison is not the key factor I think because in bitcoin just about all the inflation has to go towards paying for energy costs - which is essentially just burning all the money! With steem, there isn't this intrinsic costs - it's only about people's choices, I.e., either saving with SP, or spending their STEEM.
You should totally run! I'll vote for you. We need people who are really knowledgable running the system. Thanks for taking the time to write all of that.
Another question I have had, which you probably can answer best is... I have always wondered where all the steem money comes from. Everyday, we all get a certain amount of Steem we can give away by our upvote. But if we keep upvoting and money is just being made, won't that eventually cause massive inflation? Wouldn't the value of Steem go down if there is too much of the currency at once? So as more users sign on... what happens? Sorry might sound like a silly question... but I have no idea how it works!
Thanks very much for your potential vote! ;)
About the inflation, it is a very good question.
In fact the STEEM as it was last year was probably the poster-child of just how terrible high inflation can be on the price of an asset.
The implementation then was that inflation in STEEM was set to around 100% per year!!
The theory was that if you held STEEM POWER you would be compensated with very high interest rates which was supposed to counteract this.
However, in practice, because the inflation in STEEM was so high, any traders e.g., on poloniex, would never want to hold steem except for the shortest possible times when there were small spikes up in price; they would always want to sell again straight after. So in order to address this, they changed the model completely (to the one I just described), early this year I think.
Just have a look at the graph of steem before that time: https://coinmarketcap.com/currencies/steem/#charts !
But now, 10%, and falling each year, is not unreasonable I think...and in line with what other cryptos have had. Ethereum for example currently has higher inflation than this, and it was still able to rise to a market cap of around $40 billion recently.
In answer to your question about whether more upvotes will cause more inflation, this is not the case. Instead, the inflation rate is fixed, which means that every day some small fixed percentage of steem is created and awarded out. When upvotes occur they just get totalled up and then the amount of steem to be awarded each day is divided out proportionally by each vote's weight. So, less votes per day mean each vote pays out more, and more votes per day means each vote pays out less (relatively).
Have a read of https://steemit.com/faq.html, which explains a lot of this pretty well.
Ohh, okay wow. Thank you for this. Makes me feel better to know that it is regulated. Is that part of the witness job does? Or is it automatic?
I guess like all things in life, you must experience it in order to grow! That's awesome that Steemit was able to survive the inflation that occurred last year. I wonder why people didn't abandon ship at that point... or did it hurt Steemit? Well... the graph you gave me looks like all currency went through this high and then drop from July to September 2016.
I'll also have to take a look at the FAQ, very helpful tool.
Most of the rules are regulated by the code that each node runs and all these nodes have to be in consensus for the block chain to work! This means that a witnesses can't change the fundamental rules, just by themselves. I'm not really that knowledgable about the steemit blockchain (yet), so I'm basing this a lot on my understanding of how bitshares works.
But there are a few things that they are responsible for and one of these is providing a 'price feed' for the price of steem, derived from prices on external exchanges. This is required for the automatic sell feature for SBD in the wallet.
However, from time to time, the powers that be - developers, steemit, witnesses, im not sure entirely - decide that it would be a good thing to change some of the rules. This occurs with something called a 'hard fork'. You may have heard about the recent hard fork (HF19), which changed way voting worked so that it was linear instead of quadratic, among other things :)
Always save for your future good
agreed! Saving is the best.
yes, dear is the best option (:
Thank you, this is very important, happy night
yeah, I didn't quite get that - does it mean not claiming the steem you've earned until you have a lot or not withdrawing steem to some outside wallet and spending it?
I think it's about saving vs. spending, and if you believe in the steemit platform and by extension that this will cause SP to increase in value over the long term, then it is logical to try to convert all your earnings into steem power because the more steem power you have the more the rewards/earnings you can get from the platform (from interest, curation, and posting)