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RE: STEEM Is NOT Steemit. STEEM Is More Valuable Than Steemit.

in #steem4 years ago

Price per coin only happens when more people buy the coin than want to sell it. That's all I was saying.

Agreed, but thats not worth discussing because getting the people to inject that capital is the main problem.

If the price of the currency fluctuates too much, people won't use it to buy things and merchants won't want to sell their products for it either.

This is 100% true, but I the only way I see it reaching a stability point is if people stop wildly speculating on steem and start producing services so that there is a real need for steem. If the need exists and a solution/product is there to satisfy that need, you've created a circulating force for steem, that circulation is what keeps prices steady since no one is trying to cash out of steem.

As for replacing a whole countries currency with a digital one, thats a tall order. It is, like you said, a chicken and egg problem.

No one will replace their existing currency with a digital one, if it cannot maintain stability. But stability cant be maintained if no one keeps their money in the system (hence why powering up was invented).

We will get there, but we need to have ideas that push us there.