Yes, there are risks and it is not going to be an easy path but at some point, it is going to have to happen if a breakaway from the reliance on fiat is ever to happen. The volumes are indeed much to small for a global transfer currency but, it does have a chance of supporting a small amount as others build their chains. Again, this area pushes me into unfamiliar territory. Fun :)
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STEEM itself could become a global transfer currency given a large enough market cap but only if its value were based on something more solid than pure speculation. The value would have to stabilize around the value of Steem Power to commercial and other promoters in helping them generate monetary profit or other value in the real world.
The point of Crypto is that it's not pegged to something more stable and if it was then it wouldn't be attractive for people to put money into and then good luck holding it's value as it would crash down. If we want stable then we hold US dollars.
Obviously just my opinion, but this realm falls into my wheelhouse as a finance guy. You will attract nobody to a new "currency" if you can't offer the potential for your capital to appreciate. When you bought your first XXX coin was it because you believed that all your transactions should be done in a new currency or because you hoped that the money you invested might grow?
For most people that hold any crypto it's not about creating a new world order, but rather they want to make some profits. Maybe they like the idea of having these profits made without bankers getting their share, but in the end it's was about the potential of making a profit that drew them to crypto.
I wasn't talking about pegging STEEM to anything in the above. I was talking about its value stabilizing around its intrinsic value eventually. Its current intrinsic value is pitifully low compared to its current price. The traffic steemit.com attracts now is worth less than $100,000 per week and not the millions doled out as rewards.
I have absolutely nothing against people speculating on the price of STEEM. I'm a content creator and I LOVE being paid this well for my very modest creations here.
But to be useful as money the price of STEEM will have to stabilize around its intrinsic value in the future when Steem the blockchain has reached its potential. A form of money as wildly fluctuating in value as STEEM now is of low worth as a medium of exchange. A merchant would have to exchange it for fiat fairly quickly after receiving payments in it in order to minimize the risk of its price crashing.
I believe Steem may well develop into a platform serving dozens of applications as their data layer and hundreds of millions of users. In that future scenario, STEEM the currency would add to the value of the platform by enabling extremely fast and cheap payments across borders. There would also be a heavy corporate presence on Steem attracted by the large user base as well. In that stable situation, there could be significant money traffic between individuals and between individual and corporate accounts bypassing the need to take all that money to the bank.
If you don't believe in such a future for Steem, it makes no sense for you to power up, spend any significant time fostering relationships and developing community here. If you think Steem is a mere game of the Greater Fool, you should keep your STEEM and SBD in liquid form, play the market and cash out any time the price rises significantly.
I didn't understand what you meant by your comment, that you for taking the time to explain it. Not sure why I assumed your comment meant pegging steem to something more stable, but that is how my brain processed it.
My view for the future of steem's value is similar to yours and that is why I'm attempting to grow my account. My plans are all long term with no thoughts of powering down anytime in the next few years assuming no major negative changes happen in the platform or my life.
I think that there might be a little more intrinsic value here then you feel, but still agree it's not high enough to justify today's price and for sure nothing to touch where it was in say Jan. Really would like to see $1 again as it would thin the heard of spammers a little and be more in the range of what I think the real value is currently. Might be buying more at today's prices just because the capital is available and who knows if we will ever reach the price I think is correct.
Over time as the SMT's allow for other coins to be issued making Steem the center of everything we are going to see prices rise as Steem intrinsic value will rise also. This is probably the best chance for a real sustainable rise in price going forward.