Can help me understand why people believe it is a good idea to Burn the Steem?
The best guess I can make is that you believe it will help keep the value of Steem higher.
For any currency to have value, its needs to be held by many people. Steem is seen as desirable and we have thousands and thousands of people here who find it very difficult to accumulate Steem. So why not just give them some!!!!!
I guess that in the USA the prevalent thinking is to keep as much of a given population in abject poverty as possible. This thinking seems to be widespread on Steemit as well.
So why don't we let the content police have a permanent holiday and start distributing that Steem to the smaller accounts so they can earn some curation rewards.
We could even set up accounts that reward real world actions and develop some real positive social change around the world.
Look at what is happening in Detroit, its really poor and there are also some good things going on. Why not pump Steem into community organizers there so they can distribute Steem in their communities for doing local activities.
Why Burn it when you can make a huge difference in peoples real lives?
The answer is simple, because there is no way to tell which of those "small account" are holding by real people, and this is definitely easy to be gamed by one creating tons of alternate account to receive those tokens. Burning however, works in a sustainable way to continuously benefit the community as a whole. The effect might be slow, but certainly guaranteed in a long run.
It's all about supply and demand. If there would only be 1 steem in the system and 1000 who wanted it, well that 1 steem would be much higher and equal to the same value if there would be 1000 steem available. (in theory). So by burning steem you make each other steem more valuable. Thus, helping everyone that already has some steem, including if it's just a small amount.
I don't know if you noticed but steem is closing in on 0 value. So burning steem is a great way to help preventing that. Trust me you rather want 10 steem worth 1 dollar than 1000 steem worth 0.0001. it also helps fighting the inflation rate.
Of course burning steem is not gonna make all this happen, but if enough are doing it you will eventually see its effect. For every steem we burn its a steem less that could be sold or that takes a share from the steem in the pool = more steem for everyone.
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I am not buying into that story.
They have fucked up by chasing away investors. They started up scammy ways to make Steem which did not end up working, now they are fucking things up even more in their panic and burning it lol .
The best plan would be to distribute it
I agree 100%.
The problem is there has been a period of abundance over the last years, especially with bot voting, the community landed up taking advantage of the abundance and engaged in practices like self-voting and extracting as much rewards as possible and leaving being not much value.
Steem because known for a place where bidbots are rampant and the sell pressure of everyone earning rewards and selling is not a sustainable model for investors so the price declined.
Those are the main highlights, I do agree with you in principle that distribution is important but we also need better retention strategies and onboarding funnels, no good handing out coin for people to just dump if they find Steem too complicated or uninteresting.
I see you have a negative 2 reputation, you must have been flagged alot?
Indeed. He has now become a non-person on the platform and can be safely ignored.
Get used to it because opinion flags will be the tool for censorship of dissent going forward.
There is only one answer which I don't see in the replies to this comment (weird).
Burning Steem decreases the supply, which is the number of coins on the market. As the market cap of steem does not change, this means that the price of steem goes up.
You want to give money to everyone, well, the price going up does exactly that, it gives money to all steem holders. However, creating new steem and distributing it to everyone equally will not really give money to people because the price will move down (since again the market cap doesn't change).
The market cap is the value of all the steem coins together.
So, when you see burning, it means that everyone holding steem is benefitting from it equally.
Good questions, let's wait to their response.
The idea behind burning the Steem is to counter the inflation of Steem. The rewards pool consistently increased the supply of Steem making it less valuable. When smaller account keep their payout and larger accounts burn theirs, then the overall supply (and value) of Steem does not change and the distribution of Steem shifts in favor of the smaller accounts.
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Well MARKET scarcity increases price. Granted, this can also be achieved by simply not putting your Steem on the market.
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It's a form of virtue signalling so that large accounts can continue to justify circle jerking each other.
To simplify it further, let's assume a hypothetical case where all STEEM are burnt but one. Now this 1 STEEM is worth the total market cap. Tell me, how would you distribute this 1 STEEM to 100 million people to distribute its value to all? Hope you got the perspective!