So to sum it up, steems value is inflated by the demand being greater than the supply? The supply is destined to increase because there is a known, finite amount out there in the form of steem power, just waiting to be converted, but essentially no one to buy it if it is? the future demand is uncertain because the success of the platform is undetermined?
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@madillorama in a nut shell, yes. If your looking at your Steem Power balance and think it's worth the same as Steem is currently priced, you need demand to increase at the same rate people power down. Possible...Yes, Worth Contributing to Earn Steem Power...Yes, Buy Steem with Bitcoin...Not for me.
Thanks. A little off topic but you seem to have a solid grasp about whats going on here and prior to joining steem 48 hours agi i didnt know what a cryptocurrency was, I have a question. The content we create creates value for the currency by a)performing a transaction within the block chain, contributing to its "liquidity"
b) generating steem power and reaffirming our commitmentnto the currency over time
Or
C)just giving people a reason to join and enjoy, or to stick around at least, therefore keeping demand up?
Im not even sure I know what I am trying to learn with this question.
@madillorama This is great article by one of the founders @dan (https://steemit.com/steem/@dan/steemit-s-evil-plan-for-cryptocurrency-world-domination) which explains what they are trying to achieve in the long term. In simple terms, think of Steem as a share in a cryptocurrency network.
Steem is the power which keeps everything moving, like national currencies in conventional trade. If you write good content or curate well, you will get rewarded with Steem that are created each day. In the first year, every Steem is diluted 100% (1 Steem is created for every steem that exists), these Steem are given out in rewards on a basis on your contribution to the platform. You contribute more (quantity and quality), you get more.
Long term, Steemit is aiming to become a gateway to a stable cryptocurrency. Because the currency becomes ever more distributed and circulation increases with every individual that signs up, @dan and @ned hope to create the conditions to create the first stable, viable cryptocurrency (if you believe Bitcoin and others are too volatile...).
Early days, but off to a good start
Thats great! And to think I just came here because I thought steemit might just get my unemployed self a free beer. I didnt realize we were trying to change the world! In fact, that gives me an idea.
Thanks so much! Clearer than ever!
Why would you think Bitcoin is likely to go up but Steem is risky? If you're talking fiat then what you say might make sense.
I don't believe I've said that I think Bitcoin is going up. I would certainly state Steem is far riskier though. Risk goes both ways though..