As for the token prices, the fact that Leo is not monkeying around, trying to manipulate things is paying off big time. Certainly there are some "investors" but most people buying up Leo are the users themselves.
There are roughly 550 users on Leofinance, with a token circulation of about 5.5 million. Again, using the same percentage to HIVE, we would see an active user base of about 36,000. Hive is like a quarter of that.
This is what I talk about in those LEO price videos about the network effect. If people want to be here and participate, that translates into wanting a certain balance of the token. As rate of user growth exceeds the rate of token inflation, the price must then rise.
Posted Using LeoFinance Beta
Yep.
For some reason, growth is completely overlooked. People want to take shortcuts I guess. The ultimately way to combat people dumping a token is to have a thriving community that is excited about the future.
They will eat up all tokens that are minted. I mean, Leo could have twice the inflation rate and people would still be wanting the token.
Posted Using LeoFinance Beta
And what happens when you enter the next bear market, and instead of growth, you have shrinking?
You get a 99% correction, exactly like steem in 2018-2019.
Why? Because hype brings in new people. And more people means more ads. And more ads mean more burning.
When do you hit peak numbers for your website, in terms of users? At the bull market top, or right after.
So imagine that through the whole of 2018, as the price of steem was going down, you had a massive userbase (much, much larger than it is today) who's attention was monetized and help cushion the price dump. It would be much better.
And this would cause less people to leave. And you won.
Did people stop using Twitter when the bear market in crypto hit? Did they stop using google? Did they stop playing games? Going on Facebook?
And that is one use case...one.
Sure it is. As long as there is increase computation power, that is your only limitation. In the digital/virtual world, there are always more use cases for a token. The realm is not limited by physical space.
The reason people leave in bear markets is because we focus solely on token price. Internet usage climbed the past 3 years in spite of there being a bear market in crypto.
Thus, it seems like people were active, just not on blockchain based applications. That will not be true in the future.
Posted Using LeoFinance Beta
You cannot compare tokenized communities to web 2.0 websites. Twitter usage can have consistent growth, but steemit usage is linked to token price.
If the price dumps 50%, get ready to lose 50% of users. If you don't believe me check out @penguinpablo posts where you can see the number of daily active users. It's exactly the same chart as the price, since 2016.
So you are going to base an entire new concept based upon what happened with Steemit. Do you base the success of Internet search on Altavista?
Web 3.0 tokenized communities will replace Web 2.0. Are you saying that those applications will feel a loss when the price drops?
Posted Using LeoFinance Beta
No, you're right, in the long term this will stop happening. Once tokenized communities becomes a normal concept, people will chose communities based on preferences, and most communities will have stable prices once the dust settles.
But today crypto is 99% investors, looking for gains. There is clearly a lot more retail participants in the bull market than in the bear. And this will affect hive and leo finance, we can't deny that, for at least 1 or 2 cycles.
People will move to a different tokenized community/start a new one. If a sports community has a token with price going up 5% a year, while another sports community has massive inflation and the price keeps going down, it's easy to guess where people will want to park their money. They will buy and hold the token that goes up, so all the activity will move there.
Of course not everyone. And not all the time. Some people stuck with Steemit, and people stick with hive. But we can see how difficult it is, you must have a vision. Most people just lose hope. They don't care and they leave, then come back when the price starts to pump...
I remember one of your posts where you said that the token is the platform's marketing. I 100% agree, which is why it has to go up in value.
Automation answers this. Aren't that automated traders, for example, that do nothing but trade back and for while providing value for tokens?
How about AI journalists? Much of what we read is already done, in part, by computers?
What about tokenization of data? That is constantly being produced and often not by humans.
Posted Using LeoFinance Beta
Here I am out of my depth, I don't know a lot about automation and the link to tokens