RE: This is why STEEM will be the de facto base currency of the Internet
This is a very good post you made here and I agree with you in several ways.. but then again I once thought of linking my e-commerce business and use Steem Dollars as a form of payment, but then the volatility seriously confused me when I was thinking about pricing of my goods. Despite having all these awesome features such as 3 seconds payment and zero fees transaction.. The volatility is still a confusing factor..
The first issue was how much should I charge my customers.. And someone suggested me that I should charge it according to USD value of the present price of Steem Dollars at the time of selling, but then again its confusing.. how do I decide about payments with my suppliers and courier service agents..
Moreover, there is still a huge fees involved, what I mean is that if I want to pay others I have to pay them in fiat currencies.. And as for SBD, I can't directly convert them, I first need to convert them into BitCoin and then to Cash. There is that big fees involved.. So I would like to ask your opinion regarding this small problem that is currently not allowing me to conduct my e-commerce business and using Steem blockchain as a payment method.. For a small scale business like mine these converting and transaction fees can get very expensive, which eventually has to be covered by my customers and thus increase in price and losing customers to competitors that can offer lower price.. That's why at present my business is limited to local area market and fiat cash on delivery payment..
I agree. Price volatility makes any crypto at this point hard to use as an actual currency.
The volatility is a separate issue. Volatility is a function of either high demand, low product volume, or very large changes in the overall sentiment of things. The key reason why volatility will reduce in steem as it grows is that more accounts will have more and more coins locked up in steem power. This will cause stabilty. Also why its locked into a 13 week vesting schedule. Dont forget that before it was 13 weeks, it was 10 months!
As far as fees go, thats a unique thing to all cryptos. Unfortunately, commerce for someone who is interested in taking SBD is great, but if they are just interested in taking in SBD and then converting it over, they would have problems. This is always going to be true for any currency, as long as it is not your home currency. The solution to this is a larger SBD only based net work, where you are spend the sbd you earn only.