RE: Weiss Ranking System: How STEEM Got Such A High Mark: Do Not Touch Bitshares???
I've said it before, but I'll say it again.... reading your posts TM, is so refreshing in comparison to the usual doom and gloom everyone else posts about. Everyone here is an early adopter of a platform and technology that has a huge daily intake despite no marketing or advertising.
I'm sure that once Steem Inc have completed the next fork they'll be shouting about Steem from the rooftops, and then the uptake will likely be meteoric! Most of us will have some decent stake by then.... it's really exciting.
Weiss are just reporting on what they see, but we do owe them a lot. The best way to repay that is for us all to continue building and expanding this Blockchain so that when the masses arrive they'll have a great time.
Question for anyone.... I haven't quite figured out how a token created through SMT gets its value. I realise I'm still thinking about value in Fiat terms... but how would a company launching their own SMT give it value?
I do also don't get the complete picture on the SMTs. I do think that the new SMT coin (each different for each SMT) has to be funded in first place with Steem. I did read the white paper but did not find the answer.
The token wont be funded with STEEM but the owners can fund the purchase of STEEM with the token...they require STEEM to purchase bandwidth.
STEEM is paired with each new token for liquidity but it doesnt give it the value. That is up to the users of the token.
Thx for claring this out!
Same way all tokens get their value...based upon usage. If a site is active and have many users, like NY Time (as an example) then it has value. Bob's Bread Making site, while an ardent bunch, probably isnt going to achieve the same value.
Metcalfes Law is in play with tokens....the more that use it, the morevaluable.
Thanks TM... there is still a gap I'm not quite understanding...
If the NY Times releases a token using SMTs... what stops it from purely being a sticker? A cute thing with no value? Does NY Times have to then offer products or services using those tokens? If NY Times has a blog on Steem, and I make a great comment and they award me 5 NYTs... surely they have no value until either someone else wants it, or I can get a product for my NYTs, or they offer to exchange NYTs for cash?
Sorry, I realise I'm being annoying, I'm just not quite sure how it all fits.
The 5 NYTs can be exchanged for STEEM....that is where the liquidity comes in. If you had to wait for a buyer of the NYTs, it wouldnt be liquid.
As for the value, NYT could have an ICO and then have it traded on external exchanges or only STEEMs....either way, there is a price set.
Since NYT (and all tokens) can be exchanged for STEEM, you will technically be able to buy whatever you can with STEEM using those other tokens. It might require a conversion first.
Realize not every token created is going to have value. NYT and HUFFs might but Bobs Bread Making probably wont unless that type of site has a ton of traffic I do not know about.
Ahhhhhh, that's the gap I wasn't getting. I completely forgot that the SMTs would be easily exchanged for Steem... it all makes sense now.
Basically NYT would invest $50,000 USD into Steem... then create and buy their own NYT tokens to give out to their readers, that say, contribute a photo. Their readers could exchange those tokens back to Steem to power themselves up or buy goods and services.... we all better get those Steem shops up and running!
Thank you Taskmaster for taking the time, once again, to explain everything to me. I really, truly appreciate it.