Just watched your video which is great https://steemit.com/steemit/@andrarchy/steemit-s-real-diabolical-plan-for-world-domination
It got me thinking how exactly can this system be applied beyond content on the internet.
Say i go to repair my car , the mechanic did provide value but it did to me only so my 1 vote will probably not be enough to pay him.
I also have another question. Steem is essentially used only as a bridge to cash in and out of the SP and SD. So the currency for every day spending should be the steem dollar right? It looks like the system very much rely on the price of steem, so how can the whole system be supported when/if there is no need to use steem anymore ( imagine in 20 years everyone has only SP AND SD) wasn't this the goal to bootstrap a currency, it seems like the system would have to change if it becomes THE new economic system?
I have another question if you don't mind
Does the steem dollar needs to be pegged to another currency ? what if there is only steem dollar in the world?
Really interested in the viability of such system on a large scale.
Well, it depends on how powerful your vote is. It is theoretically possible that at some point Steem will be so valuable and members of the community will have so much power that a vote from them would convey enough value to pay your mechanic. But for most it won't and so you will have to deliver value to him in some other way. It's a commercial transaction, you will have to negotiate a price. If your vote doesn't contain enough value then you will have to give him something else. You could write a blog post about him as a kind of advertisement or, of course, you could just give him currency. The voting mechanism will change the economic equation, but it won't eliminate it.
Yes, currencies are by definition intended to be used in day-to-day commercial transactions. Steem are the batteries that make the electric car function. They're not sexy, they don't really do anything on their own, but every body involved in the building, maintenance, and use of the car understands how valuable they are.
I'm not an expert in economics nor do I have an especially detailed understanding of the technical details of steem, but no I do not see any reason why it has to remain pegged to the dollar. In fact, pegs rarely last. It's a good idea for now, but I suspect eventually it will be allowed to float freely, albeit with some other price stabilization scheme to maintain it as a store of value. Who knows, I suppose if the price of Steem becomes stable enough, the SBD could be retired completely.
another well thought out text by a creative thinker.
He keeps my trivium mind humming along without
contradiction, and without a dog in the fight we can
get it.
Pegged to a corpse $ is a red flag. Better peg it to bitcoin!
Neither gold nor fiat is safe. Just look at the last century of cartel gold price suppression.
Mises was the best we had till January 2009. This date will eventually be genesis zero for
a new world calendar.
ATB Mowgly