This post was made by @dan some weeks ago. This is a re-post link for all the new members that have joined us! ...enjoy. I have alost posted my thoughts on Steem below.
https://steemit.com/lisk/@dan/why-lisk-is-inferior-to-ethereum
"Think of steemit.com as the backbone or spine of the STEEM eco-stystem. In the future an entire body will be created around this spine. Things we cant even imagine yet." - KingJohal
The important things we should be focusing on are how we can improve the UI/UX aspects of the site and how we can create more demand for STEEM. I believe there is a ton of disinformation out there right now surrounding Steem. Many people are confused and dont understand what the true implications of this platform may be even though they are using it. That is not a bad thing at all. I think that is part of the beauty of Steem and why it will become a success. You dont have to understand it to use it. However for those of you who wish to dig deeper, read on. This article is for any non technical person out there who missed this info, or even all you crypto peeps out there like me who maybe just missed this. Can you imagine if Steemit charged you -0.01% interest to hold Steem Dollars or Steem Power like your bank does? Me either.
Store of wealth:
Any form of commodity, asset, or money that has value and can be stored and retrieved over time. Possessing a store of value is an underlying basis for any economic system, as some medium is necessary for a store of value in order for individuals to engage in the exchange of goods and services.
THE LAW OF SUPPLY AND DEMAND
Cryptocurrency market values are determined by the utility of the currency. The more use and value you get, the more demand there is. Now where does steem fall? The more sellers and miners for a cryptocurrency, the more supply there is because more people are willing to sell at the given market price. When there is more supply than demand, price falls, and when there is more demand than supply, price rises.
Steem has more utility than bitcoin, because steem already is a clone of bitcoin with less coins in circulation. 97% is being
"saved" in SP accounts. You can keep it as a store of wealth, if you choose to store it in your "steem power account" (savings account). So that is a reason there will be a higher demand for steem than bitcoin. I will discuss more below on what innovations the Steem platform brings in regards to this. Before I get to that though, the first thing anyone should take away is that the more steem you own the more power you will have on this platform and the more money you will make for posting creative posts. The more you post and the more quality content you create and curate the more demand will increase for Steem. This decreases supply and in turn increases peoples desire to power up part of their Steem and invest in this platforms future. I really look at Steem Power as a savings account with super powers and steem is my liquid fuel, day to day funds I need to pay bills..... the more people on this site, the more people will refer others to this site which further increases demand, which reduces the supply of steem, and drives traffic, paying the content creators for their time.
Now where is the supply? Who is selling? The answer is: speculators which accounts for at this point a very small portion of all buyers. The owners of steem power/dollars don't have an incentive to cash out because they know their fortune today will be worth 5% more tomorrow. Why settle for pennies on the dollar when you can let your profits run into infinity? Why sell an asset that will appreciate?
And that's why steem is a good investment, because once you realize that there is no incentive to cash out and that there is a huge untapped, undervalued market, you'll buy some steem, and hold it, and tell your friends, power up, create more money through content creation, and so the cycle continues.
STEEMIT can potentially do everything REDDIT does and FB...and much much more.
Take a look at this quote: "As for the deal, the $50 million round would be for about 10 percent of Reddit, according to Re/code’s sources. That would give the company an estimated $500 million valuation. Last year Reddit was also rumored to be raising a funding round, just $1 million for a $400 million valuation. Investors included in the alleged new round would likely include Andreessen Horowitz, Sequoia Capital, and even Reddit cofounder Alexis Ohanian, who rejoined Reddit as a board member years ago." They have been re valued and now REDDIT is valued at over 4 BILLION USD! That was their first initial valuation.
http://www.breitbart.com/big-journalism/2015/07/16/ellen-paos-ouster-preserved-reddits-4-billion-valuation/
http://www.worthofweb.com/website-value/reddit.com/
http://venturebeat.com/2014/09/08/reddit-reportedly-raising-50m-at-a-500m-valuation/
http://www.breitbart.com/big-journalism/2015/07/16/ellen-paos-ouster-preserved-reddits-4-billion-valuation/
Are we worth more than Reddit? Lets hear from the community.
STEEMIT IS STILL IN BETA
One major thing to keep in mind is we are still in BETA. As is our current market cap is around a quarter billion dollars. We still have not even fully mapped out and linked our site. Their are countless features that will bring more value to this platform and further empower all of us, such as Profile pages, friending, following and chat. We cant even think of all the implications this has yet.
HOW MUCH STEEM IS AVAILABLE TO BUY?
For people who are new to trading in the alt coin space I want to clear up Steems coin supply. The economics of Steem can be hard to decipher so I hope this helps you guys. From what I understand based on the following math this is the amount of liquid steem available on all exchanges.
if you look along the right hand side of steemd.com
current_supply and total_vesting_fund_steem are the relevant ones
current_supply - total_vesting_fund_steem = liquid steem
1 - (total_vesting_fund_steem / current supply) = ~97.1%
115,797,075.616 STEEM - total_vesting_fund_steem
112,480,690.235 STEEM
= 3,316,385.381 LIQUID STEEM avail across all exchanges as of writing this article
There is less STEEM in circulation than Bitcoin or Ether at the moment. Keep this in mind. See @dan's post here
https://steemit.com/steem/@dan/supply-of-steem-decreasing
That's powerful. Pretty much my thoughts when I heard about Steemit on LTB podcast. That convinced me to sign up immediately.