You don't hold anything "in the website." Steem Power, Steem, and Steem Backed Dollars all exist as native tokens tracked on the chain controlled by your private keys. You can use the CLI wallet, the website, paper wallets, or any other available tool for managing those keys. You do not have to trust anyone else with your keys to power up. You can power up with CLI and then use only your posting key on the website, so you get both the security and the convenience.
what backs the steem dollar? I mean if thier is a unlimited supply, does not that mean they will eventually be watered down as opposed to Bitcoin which breaks into smaller pieces leading to more value?
First of all it's less than 6% dilution per month on your STEEM. Secondly: none of you seem to understand economics. After a huge trend people will take profit and that makes the price usually fall anywhere between 40 and 60%, which is still a higher price than where it started.
this doesn't sound like "so much." 1) the dilution graph I made is correct, where do you get 6%? 2) You're second point is a prediction based on your own prognostication, which makes you comment any as valid as mine is. As an example, the coin shot up to $400M market cap when it still had less than 5,000 users , now has 45,000 users and is worth $250M. So the trending paradigm is definitely not an accurate absolute price correlation.
The STEEM dilution is 0.19% per day and 100% a year so do the math. And the prediction of how markets behave is based on 100 years of statistics and i have nothing to do with those stats.
perhaps the market may be figuring out the marginal decline of each additional new member. A 1% dilution is 1%, it's a hard number. But I'm just guessing (prognosticating) in any, as we all are at this point.
Looks like you've been right, so far. I agree, built in 100% inflation is not a good recipe for a currency. The fact that 90% goes back to SP holders does not really help, because SP is not liquid. When you hold liquid steem, as I understand, you really do suffer 100% annual inflation. Growth in demand could compensate, but 100% annual, sustained growth is unrealistic.
Steem dollars are another interesting issue. Experience tells that every attempt to fix currency exchange rates eventually fails if there is an open market for both sides.
Very good disucssion. Same mindset here. The biggest group of uneducated investors in mankind get's a shot to determine the price of a crypto. It's an interesting world we live in. This is quite an interesting website I found: https://www.coincheckup.com Every single coin can be analysed here based on: the team, the product, advisors, community, the business and the business model and much more. Go to: https://www.coincheckup.com/coins/Steem#analysis For a complete Steem Indepth analysis
You don't hold anything "in the website." Steem Power, Steem, and Steem Backed Dollars all exist as native tokens tracked on the chain controlled by your private keys. You can use the CLI wallet, the website, paper wallets, or any other available tool for managing those keys. You do not have to trust anyone else with your keys to power up. You can power up with CLI and then use only your posting key on the website, so you get both the security and the convenience.
ok, thanks for the explanation
what backs the steem dollar? I mean if thier is a unlimited supply, does not that mean they will eventually be watered down as opposed to Bitcoin which breaks into smaller pieces leading to more value?
great explanation
So much wrong with this article.
First of all it's less than 6% dilution per month on your STEEM. Secondly: none of you seem to understand economics. After a huge trend people will take profit and that makes the price usually fall anywhere between 40 and 60%, which is still a higher price than where it started.
this doesn't sound like "so much." 1) the dilution graph I made is correct, where do you get 6%? 2) You're second point is a prediction based on your own prognostication, which makes you comment any as valid as mine is. As an example, the coin shot up to $400M market cap when it still had less than 5,000 users , now has 45,000 users and is worth $250M. So the trending paradigm is definitely not an accurate absolute price correlation.
The STEEM dilution is 0.19% per day and 100% a year so do the math. And the prediction of how markets behave is based on 100 years of statistics and i have nothing to do with those stats.
sure, but you could prove it
You haven't accounted for growth. Which will massively outweigh dilution at this early volatile stage.
perhaps the market may be figuring out the marginal decline of each additional new member. A 1% dilution is 1%, it's a hard number. But I'm just guessing (prognosticating) in any, as we all are at this point.
No, its true.
Im upvotin but only because its a thorough explanation of the theory. In the end, this project will bear fruit upon fruit upon fru.......
Now it is the storm at steem. It is normal, don't worry! Trought some time it will get equilibrium. About investment in SP you can look my post.
I just wrote this post - https://steemit.com/steem/@remlaps/what-s-up-with-the-steem-price-a-theory - where I came to an opposite conclusion. I was not aware of yours, so I'll link to it in my comments.
much like in the early Etherum days, you can hold STEEM in a linux wallet...
Looks like you've been right, so far. I agree, built in 100% inflation is not a good recipe for a currency. The fact that 90% goes back to SP holders does not really help, because SP is not liquid. When you hold liquid steem, as I understand, you really do suffer 100% annual inflation. Growth in demand could compensate, but 100% annual, sustained growth is unrealistic.
Steem dollars are another interesting issue. Experience tells that every attempt to fix currency exchange rates eventually fails if there is an open market for both sides.
Very good disucssion. Same mindset here. The biggest group of uneducated investors in mankind get's a shot to determine the price of a crypto. It's an interesting world we live in. This is quite an interesting website I found: https://www.coincheckup.com Every single coin can be analysed here based on: the team, the product, advisors, community, the business and the business model and much more. Go to: https://www.coincheckup.com/coins/Steem#analysis For a complete Steem Indepth analysis