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RE: Report from the shallows. #12
Opposing forces at work, one that sucks to the top, the other that trickles down. If all Steem went to one person, it would be worhless. The value of a currency is it's ability to circulate.
Maybe I should re-do the Dennis Moore Fund....
Let's think about paper money. You had to have people guarding that paper money.
Let's think back to gold. You at least had to hire people to guard that gold.
Let's think about grain or rice. You had to have people guard that grain or rice. You at least had to have some cats around.
Now we have witnesses and they pay themselves pretty well on the whole for the service they provide of keeping track of all of this. No one binds them to dole out what they make, and no one is really strong enough to stop any large SP holder from voting on whatever they like, with a few exceptions of some infighting amongst some whales.
I guess I'm saying that there's not really much friction at all in the form of losses due to waste, spoilage, theft, etc. (okay, hackers still exist I guess), taxes, and so on that could possibly automatically penalize just sitting on SP and producing huge amounts of SBD sent right back towards you and your friends. The lifeblood of an economy is really driven by how much of that friction lands back in the hands of people who actually need it to survive, but these new digital currencies, especially ones like this, are pretty darn frictionless save for server and energy costs.
And yes, there is not really much incentive at all to spread the wealth around if the price of the currency is not dependent on how things go here, so much as how tasty a pump opportunity the charts look any given day on a single exchange.
But I suppose that dynamic will not last forever, and if SP holders and witnesses are not willing to make this place more appealing to the masses then yes, market forces and real price discovery in a post-Tether/Upbit world will rapidly show us how much people on the outside really value our little social experiment.
Also, sorry I can't vote this post for more, I'm trying to save some voting power for my own nascent social experiement/UBI project, but I always appreciate your write-ups, freeborn.
All in all, the platform is great, it's just with the distribution so top heavy it's unappealing to be a little guy.
That will change with time, if we keep putting out posts and getting what votes we get.
Who is Dennis Moore?
I figure steem needs to be in a lot of hands before it can be considered currency.
How can sbd peg with the dollar when there are only 8m of them?
The SBD peg is a long disproved experiment. I wrote an extensive comment about it here.
And by the way, I really appreciate your post. It articulates in a clear yet succinct manner everything that is wrong with the rewards distribution system of the blockchain as it is exemplified on Steemit itself as its first proof of concept.
It's just a sad state of affairs. I am not sure how much longer this imbalance can continue. The Witnesses know it's unsustainable. Steemit Inc knows it too. Continued inaction is inexcusable.
I'm all for the sbd mooning, at this point.
Maybe if it comes back down would be the time to take more drastic action to peg it, but just maybe.
As it is, a guaranteed floor is all we are promising.
I don't see how we can complain when it is selling for more than a dollar, that is the free market valuing the floor at it's market value.
Or, it could be speculators that didn't bother to read the white paper, they shouldn't be speculating in that case and they will learn a valuable lesson while chumming the waters for the little guys, now.
If the speculators want to make posting on steem more attractive by overvaluing sbd that is on them.
As long as we keep it above one dollar, I think our obligation to the speculators is fulfilled.
I agree that it is sad that stinc, et al, find it more important to overreward already rich people while screwing the little people because they can.
That can come back to bite them when we mostly all go to Dan's next version of steem.
Maybe that is the idea, they already have theirs, and are tired of working.
One of the things I don't get is how they thought the peg would be possible with so few sbd in circulation.
We are inflating the crap out of it now, it has gone from 7m to 8m in just a blink of an eye.
That will come back on us, too.
Probably when we can least afford it.
Again, maybe the plan all along.
Time will tell.
Exactly,...
Good thing they let the inflation do it.