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RE: What needs to happen to reach $10 STEEM in 2018? (Discussion)

in #steem6 years ago

The economics of what can make steem rise in value really breaks down to spreading the ownership of steem out over many more holders. To do this we need more newbies to come onto steemit and stay long enough to become hooked.

We have been trying to help support newbies with the Pay It Forward Curation contest now for 11 weeks and hundreds of plankton have gotten some much needed support. Goal is to help hundreds more and increase the amount of support given to those featured in the contest.

It's my belief that if those who produce good content see some recognition and even some rewards they are likely to continue to stick around. This recognition needs to happen on a regular basis and preferably over a period of time that spans 60 days. This seems to be a major break point in people leaving.

There are other things that will help for sure that have been mentioned over and over by others like a functioning instant onboarding process.

But overall IMO nothing matters unless those of us that are already here are willing to help the newbies get started. It takes serious time commitment and I get that, but without these efforts the newbies just leave never getting hooked on steemit.

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Since Steem is an inflationary currency, it's growth is dependent on the platform's ability to bring in new customers.

Unfortunately, this is also the definition of a Ponzi scheme. In a ponzi scheme, the payments to existing investors comes from the new investors.

Bernie Madoff's ponzi scheme ended poorly. The Social Security Ponzi scheme hasn't crashed yet.

No idea why I feel the need to answer such a off topic uneducated reply to my comment, but I do. Not sure why you would compare this to Madoff's ponzi scheme which didn't tell people that they were stealing their investments to pay interest rates on previous that couldn't be achieved. This is completely different then what steem is. Steem lays out exactly what the inflation factor is and that inflation is what is used to pay current stakeholders.

I like this you are comments

My comment hit the core problem steem faces.

Steem is a currency. It faces the classic problems of all currencies.

Most of the currencies in use, including national fiat currencies, do not have equity behind them. People who accept the currency today are dependent on someone else accepting the currency tomorrow.

You stated that you want to see SteemIt build up the price of Steem simply by bringing in new investors.

This is the classic definition of a Ponzi scheme. The payout for current investors is based on new investors.

If the focus of SteemIt is simply to increase the price of steem by suckering in new investors; then the platform will ultimately fail and will fail in a way that hurts a lot of people.

The long term value of steem has to be based on getting Steem accepted as a currency and in building real value.

BTW if you did not notice that you suggestion that SteemIt should concentrate on inflating the price of Steem by bringing on new investors is the classic structure of a ponzi scheme; then you are the person who is uneducated.

If steemit follows the route that you advocate (paying off current investors simply by bringing in new investors), then, at some point, the people who invest in the platform will get hurt.

My background is in finance and economics. Nothing about the definition of a ponzi scheme is steem.

By definition[1], a Ponzi scheme (/ˈpɒnzi/; also a Ponzi game)[2] is a fraudulent investment that involves the payment of purported returns to existing investors from funds contributed by new investors. It is an investment system where the investment profits are paid with the money from other investors, and those who experience profit believe the profits come from non-investors such as business activities, or the earnings and growth of a company.

There is no return on investment because new investors come in. This added money isn't being paid directly to those who already own steem as a dividend or interest. This is a free market where you can see the total float, total amount tied up in steem power, and total SBD issued. This market is traded on multiple exchanges openly and freely.

Nothing about a ponzi scheme is in the open. Hence you are uneducated.

Not one thing about what I said included "paying off current investors simply by bringing in new investors". What I said is we need more total demand to increase the price as currently the supply is outpacing the demand. That is how free markets work, not ponzi schemes.