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RE: I Called John McAfee & He Won't Join Steemit Because Of This Flaw...
"In fact, the gentleman that I was looking at acquiring has about $600,000 in [Steem Power]. You just can't get it out. There's no liquidity."
Please explain to me how you can withdraw 600k in steem power in one go. You can't. At most you'll get close to 6k per week, and yes, there is 10 BTC liquidity to do that.
If he thinks about STEEM, instead of SP, then STEEM is the wrong investment (SP is the correct one due to dilution protection). You don't hold STEEM when you can increase them through SP at a very fast rate.
oh duh ok it was steem power, not steem im stupid. Well, i mean with the steem power its just an issue of flat out liquidity.
Youre buying something for value that you won't be able sell (for whatever reason). That non-liquidity makes it worth less than it otherwise would be.
His problem is he can't cash it out if he wants to. That decreases its value. I actually had the same issue recently when i was considering buying some old miners, but decided against it.
Im not neceessarily saying i agree, but pretending his liquidity concerns arent founded is still absurd.
Hes basically forced to hold his investment regardless of how he thinks it will perform.
Yes, hes remunerated for this with SP incentives, but thats cold comfort with double digit %age drops happening every few days.
As an example, i recently was talking to a guy about biuying a bunch of miners with around 100btc worth of SP. I passed on it for essentially the same reason... because he was only offering me a 20% discount on their steem balances and it wasnt worth it for the reduced liquidity.