In the following video I explain how Steemit is much more than a social network, it's the most efficient economic system in the history of the world. All of this is pure conjecture :)
Here is the diagram from the video
If you liked this post you might like a brand new post from @flandude: Why Cryptocurrencies are revolutionary (from an Oustider’s perspective)
Snapchat, Insta, Twitter: @andrarchy
Three thumbs up!!!!!!!
I agree! It is hard not to get unbelievably excited about this system. I haven't been getting anything else done except working on this.
Haha welcome to the club
I just wrote another post about how smart people are on this platform. I sighted you and also embedded your video lower in the post. Thanks! https://steemit.com/steem/@brianphobos/steemit-has-the-smartest-people-on-social-media-100-proof-inside
Hi Andrew, thanks for the great video. You do a great job of highlighting the interesting properties of the Steem economic system and why it is an innovation on traditional financial systems.
It would be great to also note that Steem has a number of failure modes that could cause the system to underperform or even fail. It's important to keep such risks in mind, especially in the world of cryptofinance. Some failure modes to watch out for:
Another comment: While Steemit is indeed in principle a system which assigns power proportionally to productivity, remember that in practice people with high buying power can simply buy political power in Steem.
I'm sure all of these are valid concerns, but we have a community of thousands who are interested in acknowledging flaws and creating fixes. If these are, in fact, flaws you could become a millionaire proposing solutions.
it's good to be aware of potential failures.
There are over 58 million dogs in the US.
SP is just a share of a company. At some point (but not from the start), each company has to earn money to compensate the costs (like costs of employees - authors, curators, etc). At some point Steemit would have to have business model, which could compensate this 5% of inflation. This could be ads, special promotion content, even some fancy layouts for Steemit profiles. There will be a lot of possibilities.
Ignoring two critical points. 1. Growth of the Steemit population. If population of steemit more than doubles every year, demand for steem will outpace inflation. In truth, population growth of over 10% would probably be sufficient as only 10% of new money created goes into liquid money. 2. If products and services created by steemit population increase demand for Steem by more than 10% also negates growth of money supply. I suspect that for at least a few years, demand for steem will greatly outstrip money creation without the need for ads. Strongly doubt that ads will ever be used as revenue generating for Steemit, Inc. Users may allow others to advertise on their blog, but steemit won't need it. If it does, this enterprise likely has failed. This is about increasing demand for the underlying crypto: steem, which everyone at Steemit has a great deal of.
Haha, the end got me like
Good job!
I LOVED the ending too! Dying!!!
Great, now I have to watch that movie again.
LOL
AHAHAHAHAHAHA
Fanfuckingtastic. Always love your videos, man. Keep it up.
Thanks, truly the same to you. Great to be on this journey "together" :)
You pretty much blew it up today! Thanks for this great video. It gave me some ideas for a video I need to do. And you explained some things I didn't understand. You have a gift for communicating complex ideas in a passionate and engaging way. Le chat!!!!!
Thanks! :)
Similar to SP, SMD tokens cannot be purchased directly on an external exchange. SMD are primarily earned through contributing but can be purchased by converting STEEM tokens to SMD tokens.
Actually Steem Dollars can now purchased on external exchanges !
https://poloniex.com/exchange#btc_sbd
https://bittrex.com/Market/Index?MarketName=BTC-SBD
PS Abbreviation of SBD = Steem Backed Dollars
or just SD = Steem Dollars (not SMD please edit)
Steem's usefulness isn't quite limited to the Steemit ecosystem... we accept it for real estate at Fort Galt :)
UGH, apologies for the error.
The REAL Diabolocial part of this video is that the cat is controlling it all.
Shhhhhhh. - The Cat
Le chat... XD
More goodness to come out of it and we aren't yet aware of it coming. I sure hope Bitshares will get its proper exposure as well through this whole process of exposure of cryptos... Thanks for sharing, namaste :)
That is the beauty of economic systems, anything can come out of them.
Cat. ^_^
A lot of Steemit came out of the lesson learned from Bitshares.
Put on your tin foil space suits boys. Were heading to the moon!
Really enjoying this, still watching it atm. Sometimes i kinda feel like currency = the story that we tell ourselves :D
It's ALL about the STORY my friend! You're 100% right. But it has to be a GOOD story :)
It is a story. As we move more into the digital world that has no boundaries, we need a system like Steem to create a value-rich world. Why not have the techno-geniuses create that structure for us? It's a no brainer. Economics like everything else are in need of reinvention. Steem is actually too good. That's why people have a hard time digesting it. They are used to being fed shit.
Well put
This is the kind of future we have to build anyway because more and more jobs will be automated. This is the economy of the future.
I agree 100%
In the last 24 hours.. check it out!
https://steemit.com/socialnetwork/@stealthtrader/over-2000-new-users-in-the-last-24-hours
Nice! Thank you! Shared cross-platform...
Appreciate it.
What took me so long to upvote this? Thanks :)
You're really stepping up the value you offer to a whole new level Andrew. You've approached this from an angle I never even considered, weaving a story from a historical standpoint.
Always impressed with how you can take expansive topics and drill them down i to things people understand.
I'd recommend reading into Charlie Munger, the right hand man to Warren Buffet - he takes a similar approach to you, there might be some value there.
Thank you sir. Very kind words. That was what I was hoping to accomplish so thanks for the validation :) I'll check out Munger. Obviously I've heard him referenced a lot, but weirdly never looked directly into him.
I especially like how you talked about it being designed. This is an incredibly important distinction to current systems that you highlighted well. Also the ability to fix and refine things over time.
Money - the greatest story ever sold!
Your Steemit themed videos are the best on this site. They are well thought out, thought provoking, and inspiring. You actually taught me something that I did not know before. You mention Steem dollars earning interest. I did not know this was the case. This gives users an incentive to keep their Steem dollars in their account instead of selling them at an exchange for Bitcoin. This also (partially) explains why you can sell a Steem dollar for $1.20US worth of BTC at Poloniex.
Happy to help. What people don't seem to realize is that this is precisely the purpose interest is supposed to serve. They act like the fact that steem is printed to pay interest is somehow a bad thing, when it's exactly what every modern currency does. It's a way of incentivizing the most productive individuals to leave their capital in this specific system. This creates a positive feedback loop. Yes money is printed, but it is given to the most productive people so that they add more value to the system than they are paid in interest. The question people should be asking is, "Which system most efficiently allocates currency to the most productive members of the population?" As if it's close ;)
Nice work, hehe.
Thanks. Liked your nakamoto piece. But I don't think he would accept the Nobel in Economics :)
Not only entertaining but highly informative. Everyone here should subscribe to Andrew on YouTube.
Thanks! Can't wait for the follow function to work on this site. This is the only audience I care about :)
Just continue what you see doing man. I can't wait to see what the marketplace has to offer.
Would you be able to post an image of the chart on the white board? The focus on the video makes it a little hard to read at times. Really interesting though. The idea of designing economic systems for individual companies/communities might be one of the biggest impacts from the blockchain/crypto movement.
Great idea. Yes!
Why yes, I am about to dote a tinfoil hat. @andarachy gave an amazing conspiracy while still promoting steemit.
I wish my economics professor in college was HALF as good as you in explaining things! You just solved the entire community's confusions in a single video!!
Kudos man!
Haha thanks! What a compliment! Yes the economics profession is unfortunately in quite a sad state, demonstrated by the fact that the real innovation in the field is coming from computer scientists.
Yes, I too have always felt that the economic system of the world is somehow "rigged". Some theories of economics seem just too artificial you know... as if these were forced upon the world.
Whereas, the innovation coming from computer scientists seem more human and more natural somehow!
Watch this NOW:
read or listen to "the creature from Jekell Island" and then perhaps read some M. Rothbard and check out mises.org (Austrian Economics) .... "The Law" F. Bastiat ... you will see a little clearer and the economics will be easier to understand when that economic system is based on TRUTH !
ha! ha! Let the techno-geniuses run the world!!!!
Good point! I am sure if tech-geniuses would have been running the world, instead of those dumb people in the government, a lot of the world's current problems would have been obsolete. It would have been like living in the 2020s but in 2016!!
I should restate it thusly: let the tech-geniuses create the algorithms, then let the passionate artists convey it to the people and have the empaths and people who are restoring the earth balance be the shephards of the future.
Work for NO one! Excellent post
Currently though I, as of this writing, you get $1.14 for a Steem Dollar. I got 1.30 the other day. When that happens, that gives a reason to move Steem Dollars out of Steemit.
Yes, and then what happens to the price of the Steem Dollar? It drops to below $1. And then what happens? People buy it because they know it will go up. This is, again, part of the design. It is not a bug, it's a feature. The price is stable it is not stationary.
Very cool and well explained!
good content @andrarchy
I'll follow you now, waiting for the part 2 mate! 8]
Not everything that is "designed" is good. Evolution > design. Let's see how steem will balance design by few vs. evolution spurred by the market.
Yes, I prefer my monetary systems to be assembled by blindfolded monkeys ;)
Ha :)
Thanks for the education
you are realy working :D, ths for amazing video.
Thanks! Yeah, can't seem to stop :/
Bitcoin was also a designed system... so... innovative in that regard.
Near the end you say about SDs vs SP investment. SDs, if you view them as a financial investment, may be considered better for less risk-averse people because
Nobody gives 10% interest on the dollar these days...
Economics- study of human behavior, no?
so giving someone holding a piece of paper that says "Steemit" and today's date USD $30k for saying, "Hi I'm a chef and I have a youtube channel" is a fair distribution of wealth...?
Breakthrough.
This guy needs
Nice nice presentation :)
I would emphasize more the literally fraudolent nature of the currency based on debt: when a currency is based on debt, if we look at the system as a whole, that debt is impossible to repay.
This is a scam, but what is being scammed?
Of course not money, as they are printing money, why would they need to scam?
The scam allowed the entities that manage the monetary system to steal power to the world population, making of "democracy" just an empty word.
What makes steemit revolutionary is giving the change to create new mainstream medias, not controlled (with the debt system) by the entities who happen to rule the world in this era.
Absolutely awesome vid Andrew.
Thank you sir/ma'am :)
Nonsense. Wish he went straight to the point, lost me at this is the system that distributes wealth better... what a bunch of BS, just look at the homepage.
Three thumbs up!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Where is part 2????
All good things ... :)
good!
Very educational and lots of great facts!
Yes i agree this is the basis for an economic system in my opinion a social network is what The DAO should have created first for better visibility and incentive for its community if it didnt get hacked
Really interesting
POWERFUL PRESENTATION!
C'est énorme ! :)
Nice video! Learned allot from it
Very good!Up...
Big whale, click on my button! =)