Investors want to make money. They don't want to invest in something where they won't make money. Lots of money was put into crypto. Why? HOw were they going to make nay money? How were they going to get a return on their investment (ROI)?
It seems to me the only way to get a return from investing was to buy at X and hope to sell at some point Y where Y > X, where the the price of selling Y was greater than the price of X when it was bought. That waY you make money. That way you get a return on your investment.
The only way to make money by buying into crypto is by hoping what you bought is worth money in the future for you to make money from. Crypto is a bag-holder game, where everyone is trying to buy and then sell the bag for someone else to hold after they made some money by getting rid of the bag.
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Am I wrong here?
Why is it that with STEEM, there is this argument that there needs to be an ROI scheme within the system to game it and allow investors to make money in a way none of the other cryptos can? This is one argument for how "great" vote selling is, because it allegedly brings in investors.
Well, I have news for you, it's been over a year that the vote selling bots are here, and what does it have to show for this scheme to get people to make money by selling their votes? Where is the magical influx of investors all thanks to the allegedly "great" system of vote selling that gave people another way to making money and have an ROI? No other crypto has this in place.
If this argument was true (that vote selling was "good" for Steem because it would get more investors), then there would actually be more people investing in STEEM because Steem is the only blockchain that has vote selling to make investors even more money than simply buying a bag to hold and selling it later for someone else to hold. Steem gives investors more than any other crypto with selling their votes in the content platform, so why aren't they just flooding the platform with their money to get more ROI than holding and selling bags like other crypto?
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Seems the "master plan" to get more investors hasn't worked out. We're just left with bags on our heads for being in a crappy pay-to-play system, with 1/3 of SBD (when it was being issued, now it's STEEM used to buy votes) and 1/3 of curation going to people who sell their votes rather than curate and reward content they evaluate in order to get rewarded for curating like how Steem was designed to work.
Thank you for your time and attention. Peace.
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The flaw in the math as far as the vote bot delegations paying a large return is it doesn't account for the valuation of Steem itself falling as it has. I do believe that having investors is a necessary component, and in that sense because there are more visibly apparent applications for the masses (such as Steemit) it logically would seem more attractive to common investors. I believe that as more applications are attached, that due to speed and cost that it will become more valuable to larger investors.
But yeah. many investments do turn into a case of sucks to be the last one holding the bags if you are looking for a quick flip/quick profit.
Yes, utility of the token will bring more investment. But selling your votes is not a good utility as far as I see it. It's a crappy introduction that hurts the social media aspect, rendering it cheap and prostituted :/
I agree, although based on getting a flag I guess my cold presentation on it may have given the idea I may have been for them, lol. I was trying to look at it from the eyes of those who present it as a financial growth opportunity and why they will end up at times losing money on their investment. I also think it is damaging to those buying the stupid service, as usually it entails a loss of money to make some list no one other than new people even look at. Not a smart way to build a community here.
If a cryptocurrency is a closed system with all the money going in and out via exchanges for no other purpose than holding or making more of the crypto, then it's nothing but a vehicle of speculation and a game of bag holding. Period. Whether there is inflation in the system or not or the exact mechanisms by which the cryptocurrency is shuffled between pockets make absolutely no difference whatsoever. Simply put, there will have to be real-world use and adoption. So long as there is none, it's a pure game of bag holding.
For Steem to have any kind of sustainable value or a future at all, there will have to exist services using the Steem blockchain that produce real-world value that people will want to pay real money to use.
Right there with you man. I want to create that value.
Also, I was taking a look at Steem Monsters game mechanics and it seems quite in depth. A game like that going viral would bring massive non-speculative value.
I fully agree. Games with tradable digital assets are one obvious use case and a source of value to blockchains. There is a growing trend of artists directly interacting with their fans. DLive makes that possible. Fans do not even need Steem Power to reward their favourite artists because DLive has a gifting function implemented. That's one thing to motivate people to buy STEEM.
What would you suggest are services to be made for STEEM to be used?
Services that involve any type of ownership or trading of digital assets on the STEEM blockchain. For example, you can buy Steem Monsters with STEEM.
The use of STEEM, SBD or an SMT for tipping live performers on DLive or some other app like that. DLive has a gifting function. One could also purchase Steem Power for the purpose of rewarding performers with upvotes.
Transfering STEEM and SBD could function as methods of moving funds between different DApps. Steem could function as a separate identity and money layer for a number of different DApps and platforms. Paying for subscription and rewarding commenting would be feasible with a plugin.
One media corporation could use an SMT of its own as a payment method for different publications offering discounts for users of that SMT, in other words, a tool to implement a loyalty program.
Why would anyone buy a vote in the first place? To get noticed on the trending and hot tabs. These tabs assume that the best content must be the ones getting the highest payout, when vote buying has already proven that wrong 1000 times over.
I grow wary of this tired back and forth argument. If a developer wants to stop vote buying they simply have to create better tabs than what Steemit has to offer. It shouldn't be hard, considering that what Steemit has to offer is the most basic bitch shit any child could think of.
Yes, it's a whoring out of the site dynamics that bastardizes the reality into an unreality. Trending and hot is not reflective of a reality of content that merits it.
I am in it for the decentralized aspect/video game aspect. Can't wait to get me some great crypto games to play and make crypto for playing. Same as how we make Steem for blog posts/dtube/dlive
Oh boy, there goes even more precious time wasted in games in order to get money :P But I suppose it's more interesting than working at a boring job... :/
Yep, Investors are smarter. They know that this ROI is just inflation and entirely meaningless. All it does is destroy the steem ecosystem and turns steem into yet another inflationary pos coin. A rather weak case for investment.
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Indeed. Another POS coin where the money isn't used to make the system better, but just exploit as much as they can out of it...
The whole crypto market is in a lull. I wouldn't say that Steem has failed. If the whole market sentiment changes, and then Steem does not rise along with it, then it is a failure. But if you look across the board, there are plenty of alts that are 80-90 plus % down from their ATHs. However, if you continue to accumulate now, and the market changes in a few months, you will be nicely rewarded for you patience and belief in the long term potential.
Yeah, but it's just about holding the bag then :P
Yes and no. If your investment goes down or nowhere then you are holding the bag. However, if you compare the crypto space to the traditional stock market, the time frame is much quicker. People are happy with 10% gains for the entire year in the traditional market. They put their money away for years. In the crypto space, it may only be a few months until things change. And double digit gains are very common, as well as triple digit gains.
You are right, the steem is already touring in another environment in recent months, where the interest in helping someone else has been lost due to its content, now many rent their SP to see profits. Like others who invest large amounts of money to have great power to vote and sell their vote. Steemit is not the same when I started 6 months ago, but what can be done? We must continue to stay in this ecosystem.
People would need to care to make it better and not focus on the money ROI aspect...
Well, to begin with the whole idea with investing is to make the invested capital grow. Nobody will put money into something as an investment expecting its value to decrease in the future, otherwise they wouldn't put money into such thing.
Cryptocurrencies are specific because since (most of them) are deflationary systems it's almost a given that their value will be higher later on, when the supply decreases while the demand increases. That of course assumes the cryptocurrency will be well adopted.
Cryptocurrencies, as any other asset are valuable when used.
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STEEM is inflationary though, it doesn't work like BTC with the supply ending at some point.
That's why I said most of them 😁. It's a different mechanical though. How would you support free transactions while being deflationary?
On the one hand you have inflationary systems playing themselves, on the other hand you have deflationary ones where users need to pay for their fees.
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I have the same feeling being a crypto enthusiast, all the news towards crypto market is fine. but still market down. that means crypto market is still in a few people's hand. they control the market. I hope it will change soon.
It certainly has a way to go and could indeed be a better model to use. Perhaps in time the kinks can be worked out. Thanks @krnel
True because we lost more than gain
To the question in your title, my Magic 8-Ball says:
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BTC dropped causing all other cryptos to do the same. So we're in a bear market right now, investor confidence is low and that's probably because crypto is still very new and unique. Investors are probably asking that very same question that you are. Is it a bag holding game -- because if it is, I don't want to buy the dip.
In the real world economy the smart investors would be buying like crazy at these insanely low prices. Yet, in this strange crypto realm nobody seems to know if-or-when Steem will moon again. I've a feeling as cryptos are adopted by more and more corporations and financial institutions you'll probably see steem rise again.
Big question is, will it rise as radically as when all that randsomeware was in the wild forcing people to buy bitcoin to unlock the computer systems for their various corporations. It's possible that-that may have been what caused bitcoin's rapid spike in value. Similar to how the petrol is what traditionally propped up the value of the US dollar. Countries had to deal in dollars when trading for oil.
As far as the vote sellers are concerned. If any of them did invest big $$$ into steem, as opposed to mining it in the early days. Then it's their investment which adds value to the blockchain. So no matter how they behave on the blockchain, the fact that they're keeping their SP here as opposed to dumping to the market is good for the value of steem. If too much steem is dumped to the market all at once the supply will drive down the price and causing everyone's steem to be less valuable.
dApp developers could potentially make money if they chose to advertise on their platforms. That might be another reason that would cause potential investors to invest? One thing is key though, steem has great potential to squeeze the creative juices from people's minds and I'll give you the secret as to why.
Money is a necessity, and necessity is the mother of invention. It's why this platform has become so productive with respect to content creation. It's that slim chance that whatever content you produce may be rewarded. If corporations were smart, and I think they are. They'd invest heavily into steem and hold competitions and query people on what they can do to make their products better or more appealing. Steem is a wealth of human brainpower. There's got to be a million and one ways to capitalize on that.
Maybe if something like this happens we'll learn that the thing that makes steem power valuable is not BTC but rather the never ending supply of content and creativity it's users can provide to the world.
i did invest in few ICO project, hope can bring me double or triple return in either one project then will be good for me :)
This seems pretty negative but I dont use bot services so I am indifferent to the topic.