RE: We Are All Bankers Here On Steem
This post is gold because it presents a great way to think about things. I love that the article talks about coin-flow. Yes, we are all bankers to a degree. The central bankers are our elected witnesses.
For me, the value of a currency is how it denotes value exchanges within a community. In any functioning economy, value exchanges are not zero-sum, each side should be getting greater "value" from the exchange than they are giving. So, internal coin flow, coin churn, whatever we call it should be a sign of a functioning economy. Coin-flow in/out of the currency is a way to measure the overall health of the economy and exchange price to BTC or USD is a reasonable proxy for that - mostly.
I think we reach similar conclusions, that what steem the community really needs is more opportunity for value exchanges denoted in steem. Incidentally, the above reasoning on value exchange is why I think that there is not a good case for many altcoins or SMTs because they have no plans to bootstrap a functioning economy.
The altcoin sits in a weird place where it tries to act as both a denoter of value exchanges and a method for funding a project. That's a weird place to be at unless you either have the power of a government regarding the altcoin and its issuance. Most altcoins have fixed issuance, but approximate government -like power with a large founder/premine.
I'm rambling. In my defense, that article was thought provoking.
Final rough thought: As internal value extraction exceeds internal value exchange then the coin collapses into a ponzi. SP slows this for steem and arguably we have some basic value exchange. But agreed we need a much richer palette if steem is to do well.
Probably number a biggie is having reasons for external parties to come and burn some steem, or at least lock steem up for a significant amount of time (SP).
Thanks! let me comment on just one thing, for now: I see the blockchain economic algorithms as the central bank, but perhaps the user-as-banker can be pushed further in that it is the collective votes for witnesses that can allow that economic code to be changed.
However, so as not to make the economic system worse, would be really useful to have a steem economic committee - SEC (jokin!) - that can advise and propose suitable changes. There are some tweaks that have not yet been tried, but I'll leave it at that for now.
Yes. I prefer your interpretation; algorithm as central bank. Witnesses as central bank governors then?
Though, the wrinkle for Steem is that a large amount of tokens are held in just a few sccounts. Amounts that grant the holders de facto central bank powers because the can increase the coin supply.
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In theory, the governors are the whole collective of stake-holders. In practice, it is weighted towards the large accounts. With the current large shifts in public stakes, it is worth discussing the roles of the accounts of the exchanges.