The value of internet-based locations has been growing ever since the rise the internet.
Advertising slots in websites are the most well known example of leveraging the value of digital real-estate. Attention is a commodity always in high demand, and the cultures of most civilized countries are leading more and more into nearly obsessive awareness of our digital devices and the digital estates we interact with through them.
In the last decade, we have come to see other forms of exchange of value through digital estates; The player run black-markets of Runescape, WOW, EVE, and Everquest combined were estimated to peak in the tens of millions (USD) during top black-market years. Purely digital goods and services exchanged for out of game Fiat currency.
Over 7 million dollars of Entropia MMORPG property (including a floating city, a club, and a Planet) was sold to investors who wanted to own a small piece of the massive Entropia Universe.
Now, the world is coming to know Steemit, which mixes all three of the business models we discussed previously.
Steem has an inherent value because it drives the attention of Steem users. More SP = More Upvotes = More Exposure. Instead of paying for ads, companies wishing to advertise to Steem will buy Steem and hire bid-bots. Leading us to the second model.
Exchanging of digital goods and services through Steem. Bid bots, Resteem-bots, Post Syndication, Upvote Exchanges and other industries are booming and rapidly appreciating in value thanks to the Steem Ecosphere. The value being produced by these service engines yields a significant ROI for those who choose to invest into them. This constantly increases the demand for Steem.
Steem creates more Steem and Steem Dollars. Much like the 6 million dollar Planet Calypso from Entropia generates in-game resources that are then resold (for fiat money) to game players… By holding large amounts of Steem merchants can make a lifetime residual income by leveraging their Steem Power in exchange for other forms of cryptocurrency throughout a variety of methods.
While Steem has an inflation rate, it is extremely limited. To function on Steem without reaching a bandwidth limitation, users must acquire a significant amount of Steem Power. The first million or so new accounts are being delegated Steem by founding accounts, however many new users are already experiencing “bandwidth” limitations when it comes to using Steem.
After the early adopters, all new users of Steem will have to buy in (or be given) their initial Steem Power. As Steem grows to become one of the top forms of Social Media, the millions of new users will have to purchase tens to hundreds of millions of Steem to use the platform.
The price of Steem will continue rising in direct correlation to its popularity. As on-boarding systems for minnows are made easier, simpler, and more rewarding; more users will join, as they do our growth rate will increase. As trending articles acquire more views from additional users, advertising companies will start pouring more funds into the Steem Ecosphere. As more attention and funds move in, additional investors will purchase vast quantities of Steem for the purpose of acquiring ROI by delegating power to Steem business services.
Steem will continue very quickly rising in value as it becomes more easy and rewarding for new users to join and to stay.
The only thing that could stop the momentum of this coin is if one of the existing mainstream platforms chooses to adopt a similar currency with a similar inflation model. Due to the nature of Corporations; this is very unlikely. Profits from ad revenue are tremendous; and integrating cryptocurrencies is considered “risky” in mainstream corporate culture.
Any competitors to Steem for up and coming social media cryptocurrency platforms face a massive obstacle; initial funding and user adoption. Steem is several years old, very well funded with a huge and thriving community. It would be nearly impossible for any competitor to catch up.
Cheers Steemians! Here’s to a Social Media Revolution called Steemit.
-Earth Nation
Image by LilyAS
As part of our initiative to bring Steem to the mainstream, we created @earthnationbot; a minnow only support bot that gives a 5X upvote.
Our goal is to give the minnows of Steem a 1$ upvote for 0.2 SBD once a week; to make initial posts on Steem more rewarding. We believe this will rapidly increase user retention for Steem. @steembasicincome and @qurator have started similar initiatives that benefit new users with a notable amount of guaranteed SP/SBD for each post.
For any whales reading this, we recommend considering further empowering these projects with delegation. Higher user adoption will benefit those with large amounts of Steem most of all.
FOUND THE ISSUE: it's not @earthnationbot, but @earthnation-bot !
You are very wise to have written such a good post. I would like to ask your thoughts on what is the next bitcoin standard cryptocurrency, if not bitcoin, in the future. Could it be steem dollars?
https://steemit.com/bitcoin/@kingtylervvs/is-james-altucher-the-crypto-expert-predicting-the-next-bitcoin
We recommend joining our guild to get started here in a great way @kingtylervvs
@earthnation I am compiling a list of around 100 upvote bots, lol. Let's team up for sure
how do i join guild?
how?
HEY - POST IS DOWN! You aware of any issues???
https://steemit.com/@earthnationbot USER DOES NOT EXIST @earthnation - there is no @earthnationbot ?
You make such an excellent point. I've been thinking so much about what an influx of traffic would mean for Steemit as I've been working out my distribution strategy. Certainly as more influencers / "big names" come here and spread the message of Steemit with their individual audiences, advertisers will begin to take note.
Would that be, in your opinion, the primary way to scale Steemit and the service it offers (we pay you for your content)? I imagine the fact that new accounts will have to work harder to grow will help the economy of Steemit, but what about the fact that giant accounts will be raking in more $ than ever before?
Thank you @prettydecent.
Yes. We think the angle of "get paid for your content" is the one and only major notable distinction between Steem and typical social media for the average user.
Again, Yes. Early adopters are rewarded.... late adopters will have to "work harder"/"pay more".
Those giant accounts invested tremendous wealth(or time) to bring Steem to where it is now. Just as we will benefit from the coming waves of newcomers, so too will those that were here before us.
More then anything, the founders will gain the most benefit. As they should, for they turned an idea and a series of mathematical equations into.... a billion dollar+ exosphere that we all now get to play in and benefit from.
This platform has serious potential for a literal world basic income for creatives (we are so grateful for this). @steembasicincome, @qurator, @earthnation-bot are several services proving conceptual versions of this idea.
Very nice write up! I think one thing that could stop it is if it costs new users hundreds of Steem to sign up. I saw Grant Cardone on Steem the other day using it as an advertising platform for his products.
As the value of steem increases, additional miners will install larger mining rigs to handle the increased data usage. There is a direct proportional relationship between
A rise of users without an increase in the value of Steem would require each user to have more Steem. Thankfully; the relationship between new Steem users and the value of Steem is also connected. Since many Steem purchasers acquire far more Steem then is relevant to their Bandwidth Capacity; we expect to see the amount of steem required for normal account operations to drop to less then 3 SP.
Great info! "The only thing that could stop the momentum of this coin is if one of the existing mainstream platforms chooses to adopt a similar currency with a similar inflation model. Due to the nature of Corporations; this is very unlikely." I am happy you added that because I am sure many of us were concerned with this due to Facebooks announcement recently about looking into the blockchain and etc. This post gives me hope to STEEM ON!
Excellent points here! I have a question for the community - what are the best upvoting services / exchanges on here right now that I likely haven't heard of?
Agreed! Viva La Revolución! I'm excited to be a part of the community. Should be going up, up, up. I know the music industry is excited to be able to monetize their projects in a whole new way.
I think you make some good points but overall I think the bot economy is a blight in Steem because voting power is mostly sold to the highest bidder rather than used for effective curation or underappreciated content of especially low stake holders.
I do applaud your intent to help new users. Good on you!
I heard the "friend of all children" Mark Zuckerberg was considering adding a crypto size to their FB strategy.
I actually can't figure out how would that work. FB is all about control, Crypto is all about descentralization.
But hey, i think this social side of crypto is something they just can't not implement in the future. I actually think this is the future.
We'll see.
Thank you @earthnation! Great guild and great movement. Upvoted and resteemed!
Earth Nation supports new paradigm, solutionary and conscious based content. If you're an active player on Planet Steemit whether you're a minnow, whale or dolphin and want to join @earthnation 's vision, please consider joining our community Guild. Learn more: https://asc.ai/steemit
Not interested in joining our Guild? We have a dedicated voting bot that can support you. @earthnation-bot