Looking at the meteoric rise in value of Bitcoin, it would be easy to conclude that we all need to look out for 'the next big thing' in Cryptocurrency and that we will find it just by looking out for coins that rapidly gain value like Bitcoin has. There's no doubt that it is possible to increase your returns by doing that and some coins may yet equal or surpass Bitcoin in value. Steem, though, remains at a surprisingly low value currently. Why?
A quick read through the white paper for Steem makes the situation clearer. The basic design of Steem is for it to be used to subjectively reward text/media contributions to the blockchain and communities that use it. This is made possible by a constant production of new Steem tokens every day. This continual 'inflationary' effect ensures that there is always a constant supply of Steem available - meaning that rarity is greatly diminished. Imagine that only 1000 Steem tokens existed in the world, the price of Steem would surely be much higher than it is now - simply because there are less available.
Bitcoin, on the other hand, is a 'deflationary' exchange token, in that the amount of Bitcoins being produced will constantly reduce until eventually they will stop completely. At the point of zero Bitcoin mining production, demand for Bitcoin will probably continue to exist and maybe even rise, so the buying power of the token will increase due to it's rarity. This promise of ever increasing Bitcoin value is a large part of why Bitcoin is seen as such an attractive purchase currently - those buying into Bitcoin feed a self fulfilling prophecy - but will it really continue indefinitely?
The earlier we buy into Bitcoin, the higher the percentage rewards can be, but eventually there may be issues with Bitcoin due to it's low transaction speed and relatively high fees - Bitcoin isn't really capable of acting as a full-on digital currency to match the Visa/Mastercard networks of today. These real effects could result in Bitcoin's price dropping further down the line - as other coins take market share away from Bitcoin.
Steem does not have this explosive, magnetic attraction for investors and speculators yet and as a unit of value, it is intended to be available in much larger supply and thus individually be valued lower. However, the large supply means that we simply buy more of the tokens than we would with Bitcoin to match the same level of investment. Once Steem gains acceptance and is more widely understood/valued as both a superior cryptocurrency technology (for a variety of reasons - including rapid transaction times and no transaction fees), a likely surge in demand will surely increase it's price - but not to thousands of US Dollars.
Steem is different to Bitcoin in that it is not 'mined' using only Computing power, as Bitcoin is - instead Steem is produced continually and is then divided up among all of the users of the Steem network, with those who receive the most upvotes receiving the most payout. Therefore, the 'mining' of Steem is effectively a process of giving and showing love! How amazing is that?
Love is the ultimate Free energy!
We can either have a currency (Bitcoin) that has resulted in massive, polluting warehouses full of computers being needed to mine the next Bitcoin - effectively wasting electricity - or we can have a currency (Steem) that requires minimal computing power and where the result is both a direct payout for users based on their own creativity, PLUS where the energy used in the process is partially love itself, instead of coal/nuclear powered electricity!
You only need to listen to @surfermarly from the Steemfest videos from Room 1, Day 1 - to see how Steem payouts have been used for charitable purposes to change lives.
You can listen also to @quinneaker on day 2 of Steemfest as he literally breaks down in tears on stage as he connects to the emotions of feeling that Steem brought him back from the edge of suicide to help him build his dream eco-village and change many lives too!
The special value of Steem is in it's capacity to disruptively change reality and society for the better and once this is fully understood, there can be a shift of consciousness that may result both in a simultaneous exodus to Steem based websites, plus also a release of the need for the trading price of Steem to skyrocket. Ironically though, it is likely that in this process, the price of Steem will actually escalate anyway.
A Watched Pot Never Boils
This was a favourite saying of my Mother in this life - and it very much applies to us looking for the Steem to rise! ;)
The more we focus on really, really wanting something to occur - the more we are reinforcing the vibration of static, non-change. You cannot expect your face to change in the mirror by shouting at the mirror - your face has to change first.. By this I mean that our intentions for change in the 'outside' world play a big part in the actual change, but as long as we are constantly reinforcing the thought that 'Steem is too low' - then we resonate that reality and hold it in manifestation all the more.
This might sound a bit 'woo woo' to you - but that's ok, it doesn't mean you can't just experiment by releasing attachment to the need for Steem's price to be higher and then see what occurs after that. ;)
At the very least you will feel better than you will by obsessing about the price of Steem increasing!
Wishing you well,
Ura Soul
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I think there is great potential for steemit to increase in value, but the inflation rate of 9.5% /yr is a bit much IMO....it will take time, but that is actually a good thing if you take a a long view and use the time to accumulate gradually. Produce and consume content here...the site needs to be a little quicker though...is that going to improve over time?
The inflation rate is set to come down every year and the userbase should increase, so there will be a gradual rise of the value over the next 18 years (using the current data) just from that equation alone.
I'm currently in the process of analysing the process of Steem creation, but haven't yet found exactly which variable is the one that displays how much is created each day.. I continue!
The speed of the site is likely to improve I think, yes - for several reasons - part hardware and part software.
Absolutely awesome yes this is definitely why I love Steem and the Steem Community because yes this is about love showing love being positive and returning that investment or whatever you make in the shared love and sending out more love into the real world this is a great deal I'm all for it and I love that everyone can see this especially with post like this and people who understand that this could be definitely bigger not more expensive but bigger than Bitcoin with more value in purpose then other cryptocurrency like it. Be well and steem on my friends , let's balance the table out and let's share that love and spread it everywhere this is always been my dream my hopes and now it seems like more so with everybody's backing this is reality so happy to see it. Thanks. @ura-soul
Well, there are certainly users here who do not share this vision much and who simply see opportunity to make money on their investment of money - thankfully I think this has decreased a bit over the last few months and with a continued focus on shifting perception in the community about what is possible here, maybe the vast majority will think more with their hearts than with their wallets! ;)
Yes indeed well stated, love is more powerful then money, shifitng of mental states is hard, but life in general is seemingly drawing the line on good intent vs bad intent, good vs evil so to speak. I am super greatful to find people that have this vision on what matters more. I used to waste my time struggling to just keep a following on other social media and failing in keeping the mood positive all the time, steemit has the fuel to keep you going tho and not worry about a following, it will come over time, make great content and people who are interested in what you have to offer will come eventually but it's no worries I enjoy blogging more now than I ever have in the past so shifting my focus on Steemit feels more of a positive change in my life at least helping me create more and find more information that I am always seeking to find. Anyway I could ramble on all day just glad to share this awesome Vision with others.
"We can either have a currency (Bitcoin) that has resulted in massive, polluting warehouses full of computers being needed to mine the next Bitcoin - effectively wasting electricity - or we can have a currency (Steem) that requires minimal computing power and where the result is both a direct payout for users based on their own creativity, PLUS where the energy used in the process is partially love itself, instead of coal/nuclear powered electricity!"
Given the fall in the price of STEEM, many people are selling it, without thinking that this currency has a huge value. We must trust STEEM. I am a faithful believer that this platform has a long way to go and will be a strong element in the world of cryptocurrencies. Very inspiring your post.
Aloha! Thanks for your comment - I agree, yes - there are a few hurdles to jump and then Steem's value will rise; how much depends to some extent on a long list of variables that are not all obvious presently!
An interesting view and completely logical in my eyes. Both are different and will be treated so. I think it will increase not to the extent of bitcion for sure of as quick. It would be good to see trade in it though through Steemit surly this would also increase value some what ?
Yes, there is obviously a massive hole in the market for a marketplace - an ebay type of project would be huge.
Now that's a great idea :)
I resonate with your words of wisdom !
Aloha! I'm glad to connect here.
I resteemed ur post and added it on fb
ah great! thanks a lot :)
Beautiful and inspiring post on Steem! thanks for sharing!
Thankyou!
steem More expensive than money Because its location knows you are great people
It touches me :)
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