People seem to be skeptical about SteemIt, and rightfully so. Because it really does look like it's too good to be true, doesn't it? Well, what if it's actually real this time? What if STEEM and SteemIt is just pure brilliance? Below are the reasons why people are always going to invest money in STEEM in one way or another:
- People want to transfer money to anywhere in the world with ZERO transaction fees!
- People want to invest in STEEM as if it's a stock in any stage of the development of the STEEM economy
- People want to invest in STEEM POWER as a long-term investment
- People are really going to want to buy STEEM to exchange into STEEM DOLLARS for the 10% annual interest!
- People want to cash out their STEEM DOLLAR interest which will increase the value of STEEM
The phases of adoption
1. Early adopters phase
- People will invest heavily into STEEM POWER
- People will invest in STEEM as short or long-term investment
- People will buy STEEM to "daytrade" it
- More money will be flowing into the ecosystem than out of it
- The value of STEEM could go parabolic
2. Mainstream attention
- User growth goes exponential and so will the price of STEEM
- This will be the biggest STEEM price growth
- An incredible amount of money is in the STEEM economy and liquidity is at it's all-time high
3. Correction phase
- People will take profit of their STEEM investments
- People will panic sell
- The prize of STEEM will probably fall around 50% over the course of a few months or years
- People will buy back in because they think the value of STEEM is cheap
4. Stabilization
- The STEEM ecosystem has proven it's value
- The true value of STEEM and STEEM DOLLARS will be determined
- Massive liquidity
- People will move large sums of money into STEEM DOLLARS for the 10% annual interest since the network has proven itself
I hope that you can see now that if we survive the next couple of years (no catastrophic hacks/security breaches or negative attention etc.) that there is true long-term value in the network that has the potential to grow into the hundreds of billions, because STEEM does most of the things that banks, Facebook, Reddit and the Forex do, and does it all better, in only 1 platform!
I don't know why everybody is missing this: People will buy into STEEM because whoever holds STEEM controls the conversation. At some point, if this network is to succeed, some advertiser or political lobbying organization is going to realize this and spend a tiny bit of their advertising budget to buy themselves a whale spot (or, worse, they'll pay a whale to start upvoting for them on the sly).
After that, the market cap of STEEM will be through the roof, but the price we'll pay for that is that it will be full of people who are literally trying to buy our attention.
If you like my writing and ideas, check out my series on the game theory of steem!
I like your spin on this. It would make sense for "Big Money" to come on board if they could gain an edge promoting their brand. I'm going to look at the link you left . Keep sharing your thoughts and views. A more informed user is better for the future of Steemit to keep improving.
Simple and well put summary of the mechanics on how establishment of value works. Thanks!
Great post. You got my vote :)
Artist Reference: @artist1989
SteemPower enables one to keep control over the awesomeness of steemit by rewarding awesome posts. That awesome content brings new people to steemit and lets raising the usage of Steem. A really smart way to establish a new cryptocurrency. Thanks to Ned and Dan.