How Big Can The STEEM Blockchain Be??? Let Us Look At The Numbers That Are Out There...They Are Big!!!!
Too many people confuse Steemit with STEEM. This is a major error which drastically undervalues the potential of this blockchain.
STEEM is the token on the steem blockchain. Steemit.com is an application (the first one) that is really nothing more than an interface to the blockchain. Everything that you post on Steemit.com is on the blockchain. However, Steemit is not the only way to read this data. Busy.org and chainbb are other interfaces which can be used to post in a similar fashion. While each is different in its design, they all access the same information.
This is one of the primary advantages to the blockchain. The ecosystem is the blockchain and what is built upon the top of it. Unlike the traditional model where applications like Google, Facebook, and Amazon are separate from each other, on this network, all are intertwined. It is the blockchain which you are accessing with your account regardless of the interface. That is why the same log in keys work regardless of the app.
The US Stock market is in earnings season so there is banter about the numbers certain companies are going to report. One interesting tidbit that I came across is a new rule that is going to force Facebook and Google to announce what impact, financially, Instagram and YouTube have on the corporate entities. For most companies, this is going to take place this year and many expect FB and Google to follow suit.
Nevertheless, many analysts have taken some shots at what the worth of these entities are.
YouTube is the behemoth on the block. We know this is a gold mine for Google even though we are uncertain of the exact numbers. Nevertheless, the estimates are very impressive.
MKM Partners analyst Rob Sanderson wrote in a note to clients that YouTube revenues are going to reach $26 billion a year by 2019, and said the business should be valued at $150 billion by the time Alphabet reaches a $1 trillion value by market cap, as he has predicted.
$26B in revenues by 2019 (which is next year)? $150B valuation?
That is mind blowing. These are also numbers I am not going to argue with. While I cannot say if they are true or not, the fact remains that we know how important this medium is for Google. One does not have to spend much time on there before realizing that you can go two, maybe three, videos before getting hit up with an ad. Considering all the hours people spend on there, I am sure the advertising is enormous.
As for Instagram, that is a little more challenging to decipher since it is an ad-sales arm for Facebook. As one of the most popular apps of all time, this helps feed advertisers into the Facebook ecosystem. And since mobile is only getting bigger, this means Facebook is aligning itself to where the market is going.
Overall, analysts model $40.22 billion in 2017 revenue for Facebook, of which about $34.44 billion is from mobile ads, according to FactSet. Of that revenue, eMarketer, a market research company, expects Instagram to generate $4.1 billion in 2017 ad sales. In 2018, eMarketer expects that number to grow 93.5% to $7.94 billion.
But Morgan Stanley is much more bullish on Instagram’s 2018 upside, estimating the unit will generate $16 billion of revenue, after a $10 billion haul in 2017.
For full story detailing these projections:
Not as impressive as YouTube but still a pretty big deal. For argument sake, and since I like round numbers, let us use Morgan Stanley's projections. The analyst of YouTube used a multiple of 6 to get valuation from revenues. If we do the same for Instagram, we see this entity is worth almost $100B.
Thus, these two applications combined are worth a projected $250B.
In comparison, the steem blockchain is wroth $1.5B.
When talking about this blockchain, the money factor is thrown out with great regularity. This only makes sense since this network was designed to reward content creators. Obviously, with some of the issues these two companies are creating with censorship and changing the reward pool, this could be attractive to those creating content.
However, is money really what will stimulate users?
Perhaps it could. Yet there is something else that I think is overlooked and that I have not seen mentioned. When you use an app on the steem blockchain, not only do you have the ability to earn some STEEM but you also have NO ADVERTISEMENTS.
How often do you go to watch a YouTube video only to have to sit through a 10 or 15 second commercial? $26B in projected revenue for Google from the YouTube brand; that is a lot of advertisements.
Here is a little secret: D.Tube has no ads. People can watch the content put up there without interruption. As the application keeps improving with each new update, I believe this will be a real force in the video content world.
Advertising or No Advertising? Which do you think people will prefer?
As for the Instagram situation, we are seeing a new app going through ICO by the end of the quarter. Appics announced today that it will host its ICO on March 28th. This is an app, if I am understanding it correctly, that could potentially give Instagram a run for its money. Actually, since Instagram is nothing more than an advertising lead-in for Facebook, I guess it is more accurate to say Appics could take a lot of money from Instagram (Facebook).
Like D.Tube, Appics offers the same incentives to content creators. The major difference is that most anyone with a smartphone becomes a content creator for an app like this. In 2016, there were over 1.5 trillion photos taken, the vast percentage on smartphones. This means the average user takes pictures and shares them with others. Appics looks to target this market.
Therefore, not only does it have the ability to incentivize people, there is NO ADVERTISING.
Again, advertising or no advertising? Which do you think people prefer?
And for those who want to know what will stop either Appics or D.Tube from adding advertisements down the road, why would they? This will only needlessly tarnish their product.
The founders of each of these platforms is looking at the tokens for the value. That is how the revenue streams are created. There is no need to move to the old advertising model. The content/reward system that is inherent in the steem blockchain has a means of offering the applications a revenue stream. At the same time, the people involved in these projects own tokens, which means they profit from the appreciation just like other token holders.
When dealing with this system, advertising revenue is not needed. The system itself creates the revenue for all involved.
So how big can STEEM become?
Just using these two applications, if it can take even 5% from YouTube and Instagram, you are looking at a value of $12.5B. Considering we are less than 1/8 that value now, it puts the price of STEEM at $51.
The question is will millions of people want to send out photos and watch videos without ANY ADVERTISING?
Oh and get paid for doing it too.....let us not totally skip over that part.
Who says "yes"????
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ADs are no concern to me ADBlock is on and I newer see ads on YouTube or FB.
What is really relevant for me is - no content censorship. And I own my content. And no one can ban or silence me. THAT is huge.
I hope Im wrong, but sometimes it seems Steem Inc is too quick to sell the Steemit site short. FB has a market cap of over half a trillion bucks!! We need a rock solid mobile app like yesterday. We need to fix the bandwidth and on boarding issues. You dont wait a week to join YT or Insta
This really shows the huge upside in STEEM. If conservative estimates of dtube and Appics brings STEEM to $50+, just imagine what the aggressive targets look at. Granted, these 2 apps should encapsulate the majority of the value, there could be many more uses for the STEEM blockchain that we haven't even thought of yet.
The potential is definitely there. The question is how quickly it will take the masses to start adopting. No ads while getting rewarded for social media?! Sounds like a no brainer to me!
I know YouTube's revenue is high, but I do not think they are profitable... somebody correct me if I am wrong please?
You are correct. With Ads, YouTube is not profitable, and is running at a lose, but Google gets its money from user information
Ah, good point, and now that most view stuff through their telephones, it's guaranteed user information from them, since you pretty much sign your life away to them when you agree to use the application.
Google never says, but estimates are that, yeah, youtube is highly profitable.
I did not know that, I always though it wasn't.
I don't support with your answer because steemit is being a place for rich people only. Just buy some SBD and use those bots to get you upvote.
Many steemians are doing this and I don't think an ecosystem will run like this. People posting quality content are having pain in their ass because all people who use bots earn and those who don't won't.
I think eventually people will be upset to such and extent that they will leave.You have a well established account and you don't know what's happening. But people not having much money aren't earning and if it continues this ecosystem will fail.
I don't mean to say steemit will fail but I think steemit must try to stop those bots or make their official bot which is the only legal bot and it won't upvote to make people profit but only to get visibility. And clean all those people using random bot !
Nope, buying votes from bots only most of the time will only gain you the extra visibility of your posts. If you think that one can earn much from a bot then you are dead wrong. Those bots are there for a reason but definitely not for charity.
And the reasons that you stated to ban the bot is like asking people to stop doing SEO for their websites for a better rank in search engine. Simply impossible. The world is a free space, as well as Steem. Learn the rules and survive or quit the game.
Cheers!
My point is that many people are just posting crap and using bots and they are really earning. I don't think this is healthy for any ecosystem. This is making rich people to get votes for nothing. I won't quit this game my friend and rules may sometimes bad and an effort to correct it is not bad !
I think you are engaging in hyperbolizing. While there are a few posts on the trending page that are "crap", most are what I would call quality content. So you are exaggerating in your debate from the start.
Also, you want to limit things....where is the line in the sand. I use an autovoter for a few people so I dont miss their posts. Should that be allowed?
And what about the ones who design the bots? Should they be forbidden from engaging in free enterprise.
The problem many people have is they cry about censorship and wanting freedom, until they get it....then they cannot handle it.
If you want rules and restrictions, other sites excel at that.
And I have posted repeatedly how the rich are getting richer on STEEM is a fallacy...so stop trying to spear untruths.
They are not in trending and you don't know them because you are big here. You will find many beginners suffering from this. Personally if I use bot I will gain more because I have SBD constantly flowing not much but I can multiply by bots. I may be unclear about it but I think bots are decreasing Healthy competition !
I like how you prefer to talk on my behalf and tell me what I know and do not know.
Just to let you know, I spend more time on there than probably 5 people put together scouring around this site seeing what is going on.
I am well aware of what is taking place.
As for beginners, here is the fact: they earned nothing hence deserve nothing. The system is in place to reward those who are contributing to the blockchain.
Someone who comes on here, writes a post, and expects to get a huge amount of money, for what? Because he or she wrote a post. That isnt how it works.
If someone wants to excel, he or she should spend the months posting, commenting, and upvoting. That is what the others did.
I agree that the fact that content is not filtered at all by many of the bots does lead to an increase in junk getting voted on. Junk in general gets voted on and it distorts the economy and visible content on the website, both of which are bad for the long-term.
What do you think is their any way to filter quality post by bots?
I partly agree with you. It's true some times some posts that are not worth it are getting a lot of upvotes through bots, but the legit ones does overcome that as time passes. It just takes a little time.
How do you think it will happen @ajmaln ?
The system is already making that happen.
Look at the numbers....
The Top 1% is losing power (as a percentage of the whole) each quarter. They were down 7% in the last 90 days alone.
Their piece of the pie is decreasing although it is an increasing pie.
I dont use the pay bots but I do not bemoan those that do. Many have found success in doing that, especially newer people. Is it worth the money is my only question but I guess people need to work that out for themselves.
Overall, I dont like the practice yet I do not feel we should hinder those who do.
And one challenge you have is that everyone can use these bots...there is no exclusivity to them. Thus, when you attack the "rich" for doing it, the "poor" could do the same thing. In fact, many minnows do.
I don't think you know about many communities who just post crap and use bots to gain profit.
The lack of advertising is huge for me. I developed the habit of avoiding products that I recognize from advertisements - because if all that money had to go into promotion, it certainly didn't go into creating a more valuable product for me.
In many ways, Steemit is a return to the gift economy of more traditional societies, and I think this appeals to people in a big way too. Especially as jobs disappear and meaningless labor becomes a thing of the past, people are eager to find ways to give and contribute. Steem allows them to do this both through their time and creativity and their investment.
After a few months of my stay at Steem. I'm very much out of touch with advertising, I used to miss her. And now, when I look with the cartoon son, she irritates me very much. Thanks for doing Steem - the Best. Good luck to you and Good.
Thanks for this @taskmaster4450. I actually just did a post about Metcalfe's law and the rate of growth of Steemit, funny how we both did something around the growth of Steemit at the same time.
Its funny, I forget about the other features like no ads. I think I spend enough time browsing here that I've started taking some things for granted. The other day I was getting someone excited about censorship resistent social media on a blockchain. He was excited, but then he became concerned about its affordabilit, he didn't want to be spending dollars a day of the crypto. lol. Anticensorship isn't something you pay for. No ads isn't something you pay for. Normally you get paid for those kind of things, what bizarro world are these people living in?
We do need to find a way to break the steem-steemit being used to mean the same thing. Maybe I need to go on a shill campaign for busy or something, not even let a group of people know about steemit until they are on the platform.
Steemit is growing day by day and developers are working on new apps and integrations that will make it more popular and easy to use.
Even without advertisement the platform is growing. There are enough video on youtube talking about this community and many articles on google.
The future can be only better!