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RE: Putting on the Thinking Cap

in #steem6 years ago

Steem cannot be purchased in its totality, because as you start buying it, the price of the Steem you don't own rises exponentially. If you pay $100million for a quarter of all Steem tokens, the rest of the Steem tokens will rise in price by $2 billion, thus making Steem in total unaffordable.

The reason for this exponential escalation is that most Steem is printed, not bought. Therefore, the impact of $100million real fiat dollars entering the eco-system will shock the system to a degree about 20 times the amount invested. Thus the average Steem token would rise from $1 to $20 overnight. The 20:1 ratio is the best guess regarding how much real fiat money actually flows through crypto projects, the market cap of most cryptos being a hope for future growth.

Therefore, it is impossible to buy Steem in it's totality.

For the sake of clarity, I will address some of your other suggestions in another reply lol.

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Yes of course Rodney, I'm breaking the 5th Newton law here.... this is quite impossible.