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STEEM DOLLAR CHART FOR ALL TIME
Not going to make a long post, but going to keep it short and up-to the point. I have put a lot of work into this , so I would appreciate if this post reaches to large number of steemitians.
Economics is a big topic and most of you must not be knowing the typical economic terms, So that is the reason I am keeping it simple not bringing in the technicalities.
One simple question why there is a difference in the value of steem and bitcoin?
The answer to this simple, the amount of work that goes behind creating new steem dollar or bitcoin.
Assume someone is offering me 10 biscuits for one bitcoin suppose (i would get ton of biscuits for one bitcoin though lol!) and he is offering me 5 biscuit for one steem dollar. What the reason that the person is offering me different amount of biscuits for each one steem dollar and one bitcoin. The reason is amount for work done to create one steem is different then the amount of work done to create on bitcoin.
Most of us know bitcoins are created when a block of transaction is added to the preexisting blockchain. The miners have to do the hashing to get the block added to the blockchain alot of work is done to get the blockchain added (electricity is used )
So mathematical work is done to create more bitcoin. And no single person has the right to create bitcoin .
BITCOIN CHART FOR ALL TIME
In the case of Steem new steem dollars are created when new digital content is created, the new steem dollars created are reward for the work that is been put in creating the content by the creator. The other steemtians decide the content is legit or not by upvoting it. ( upvoting it if they think the content is good and good amount of work is done by the content creator).
But there is one thing different in case of steemit, the power of the vote is different of different accounts. The account which has more steem power has vote that has more value. Such accounts are called whales.
We as Steemitians expect the whales to use their power wisely. but that is not the case. what if your government says that you can print the currency . How many of you will be using this power wisely? Very few most of them will use this to print currency for themselves . (There are whales how are not in this kind of activities but even one fish can pollute whole tank.)
Same is the case on steemit , the whales end up upvoting their own content which is not worth , the upvote they make. IN such case money is created even when the amount of work is not done worth the money .
THIS THE REASON THE VALUE OF STEEM DOLLAR IS DECREASING !!!!!!!
@sahillabh, you really did an amazing analysis on bitcoin and steem. And you did it in simple and understandable terms. Thank-you! Just to let you know, you may need to get a picture for this post. I'm thinking that is why no one is clicking onto it. I will resteem but please get some sort of picture to attract. Take care!!! :D
Ya I was thinking the same ! thank you for the suggestion and support as always.
Great Analytical post
Thanks for sharing
Thank you @roshan77.
That is not the reason why it is going down. The reason why it is going down are big whales powering down and selling off Steem as well as big market traders who own a portfolio of all top coins including Steem are reacting to the BitCoin price and sell it off together with the other dropping coins. Whales upvoting themselves has certainly nothing or not much to do with it.
My view on whales upvoting themselves: I think that it doesn't matter if some whales do that. It is not cool but why should we be allowed to that and they - who invested MUCH MORE than us not? But then again, a smart whale knows that the Steem price will make him/her rich(er) when it jumps from 1$ to 10$ and beyond. And that happens much easier when the whales support the minnows who are the majority on the platform.
And do you have any statistics backening your point up that ALL whales are doing that? All the whales I am seeing are rather beneficial for the platform and delegate a lot of their power to great projects. If a whale starts just upvoting himself several control mechnisms exists to discover this behaviour and counter it. Whales do flag other whales for example.
Wow ! you cleared my doubts for sure , I got many comments disagreeing with my opinion but no one explained me why was I wrong! Thank you for providing such insight. Can you tell me the control mechanism that discover such behavior , I am new to this community so don't know much about it.
Then what do you think the reason for fall of steem price?
Like I said, Steem has problems on the market places. They didn't offer Steem for a while and it s all strange and confusing what is going on there. Needs technical improvement in Bittrex and Poloniex. Then there are big users selling Steem by powering down. Whenever that happens it is quite a bit of Steem and the price drops since there is not sooo much trading with Steem going on right now. And then there is Shapeshift.io that service that changes one currency into another. It used to support Steem but recently took it off for unknow reasons. Many things coming together. But don't worry, the price will go up as soon as the new updates for Steemit are coming with the new UX/UI and then there will be a multi million Dollar marketing campaign as well.
The mechanisms are plenty: @cheetah, then there is a bot called Steemitwatch or so. Then there are users who hunt people abusing the platoform and write posts about it. Then whales often come and downvote that content. I don't know much about these mechanics in detail but since everything is transparent and public nobody can hide what they do. They try and it is sometimes difficult to discover but eventually somebody finds out and does something about it.
This post recieved an upvote from minnowpond. If you would like to recieve upvotes from minnowpond on all your posts, simply FOLLOW @minnowpond
This post recieved an upvote from minnowpond. If you would like to recieve upvotes from minnowpond on all your posts, simply FOLLOW @minnowpond
Well done, however, I noticed a few problems.
(That´s the phrase we were taught to use before giving feedback to our diving students in the IDC).
Basically you mixed up price and value, therefore I let the great Warren Buffett explain it to you:
“Price is what you pay, value is what you get.”
Excuse me for that @likedeeler . I will make the changes , I am a newbie still learning , need people like you to correct me thank you for your insightful comment . I appreciate .
Was is not worth upvoting, can you tell me were I go wrong, any more suggestions?
actually i disagree very much with this.
THe reason is that not enough minnows are investing ANYTHING else into Steemit.. WE can't expect a few whales to be able to upvote and support us all.. simple math explains that isnt possible..
If all the minnows put in just 100 USD it will go a long way to helping keeping the price up.. that and sending all your rewards to SP instead of extracting it all out of the system..
I agree with you. The few whlaes we have cannot possibly overview all the content created and therefor fail in upvoting it all. But what they do - and I think that is a great killer feature of Steemit - they delegate their power to community leaders. @Ned for example gave tons of Steempower to @surpassinggoogle to support the Steemgigs project. And you see that everywhere. It is not a whale vs minnow game here at all. We are all working hand-in-hand to make Steemit grow big.
Know things are very clear to me . I think I was wrong! thank you for opening my eyes.
You are welcome. This whole thing is not easy to understand and I am sure I haven't listed all factors either.
I know that is not easy , but I just attempted to make it simple. But it turned out to be a disaster. hahahah....! I had one more doubt, will the value of the vote for same voting power today will be same after a year. what I mean to say is , that suppose I can make a 0.5 dollar 100% upvote for steem power of 6500 today . Will I be able to to make 0.5 dollar upvote for 6500 one year from now, or it will change?
It will change! The price depends directly on the Steem price. The higher the Steem price the higher your upvote will be. And the price will go up.
But this way , more and more steem dollars will be created there will be no end to this ?
yup! and yes i see many amazing delegated people such as @canadian-coconut who continue to find and upvote really great content... overall in fact, there are really many whales and demi-whales who are all spending a lot of time upvoting great new content..
Its SO easy to complain or find fault.. but i dont really buy it. . we have to all do what is in the best interest Steemit for the long term.. and that means not just relying on people who have invested to make all the magic happen.. I keep trying to tell minnows and people with nothing to invest.. many have as a result.. but its hard to really explain it to that many people with my limited outreach!
anyhow.. glad you agree flauwy!
Ya @eco-alex , I think I was wrong , thanks to you all for explaining .
Indeed, it is up to us with everything in love to make a difference. It is the internal struggle in life we have to overcome, not the external. @eco-alex, I checked out your profile and it looks interesting. I am following you.
yes exactly! our internal struggles spill out onto the world.. only someone who is totally at peace and one with everything can sit and laugh at it all.. (hello Buddha) .. thanks for following, ill endeavour to keep writing cool stuff!! ;-)
Thanks flauwy, now I learned something I didn´t know!
I quite like surpassinggoogle and what he does for the Philippine steemit community,
didn´t know he got a boost from Ned.
Yeah, he is very actively involved in pushing the platform forward. I was lucky to meet him early and learned a few things from him.
I agree with your point of view ! But I think my analysis is not totally wrong , do have a counter argument for whales exploiting their voting power?
well my feeling is..
THis is one of the very first real life examples of true Anarchy.. and to be specific Anarcho Capitalism. That means that basically there are no rules except those we choose to make and follow for ourselves. We are all in our rights to do as we see fit, and also to say what we think about it. It is also about making money and those with investments do want and deserve some returns if they choose it.
Personally, i think whales are entitled to do what they want.. overall they do AMAZING things here on Steemit to support new and great writers.. just look at @curie and @hendrikdegrote for example.. i know SO many people who were blessed with an @curie vote ... Whilst there are of course example of whales enjoying their own power and doing things you may not like.. it is Their money that has brought the price of Steemit to where it is.. and they are the ones taking the risk with a 13 WEEK power down.. Therefore i have no complaints.. since overall they are actually amazing people supporting things that i really agree with..
Meanwhile.. 90% of users are here to make money with no risk and no money invested.. when more people start to put their money (even just a little) where their complaints are.. then i know Steemit will truly prosper..
Gosh me driver, didn´t expect to meet you here, in the hollers of economic "theory" 😉
This article is wrong on so many levels, I couldn´t be bothered to point them all out, but by the grace of you and flauwy the author got some good explanations.
Let me just quote another legend, the great Kostolany:
"The whole stock market just depends on wether there are more idiots than stocks,
or more stocks than idiots."
My favorite explanation of how supply and demand drive price.
Thank you @likedeeler!
Thank you for your valuable insight. Really glad to learn that I was wrong.
Happy u agree! Its all personal opinions really!
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