RE: Are You Really Playing The Steem Long Game?
SBD pump was ignited by an organic transactional demand. Voting bid-bots was on the rise. There are only 2M of SBD tokens in circulation and open bid-bot software was accepting them only. So the community was in need of roughly 20-30 mln of SBDs in circulation while having less than 2 and being too lazy to modify bidbot code to accept STEEM tokens. The pump was ignited by this demand and continued on exchanges which were far from rational on bitcoin all-time highs.
Flash-forward 5 months we are still in need of 20-30 mlns of transactional SBD mass but having not 2 but 9.5 millions of them. So the exchange rate is still far north of the peg. Right now SBD price continue quickly inflate at rate of 500k a week. In late summer we will reach the transactional demand and SBD price will hit 1 USD. All thing will return to normal.
What lesson should we learn? Simple and essential economics. If you want to peg something to USD you need to hold or be able to create token mass large enough to meet any demand.
The rational strategy for steemian right now.
- Exchange all SBD you have to STEEM asap.
- Buy some amount SBD once they hit 1 USD to meet possible increased deman in future.
The pain is that MANY new steemians get used to inflated rewards and probably will leave the platform as soon as the get back to normal.
Yeah i agree completely. I've been redeeming most of my SBD already and holding some just in case. I've been around long enough to see before the pump and new something was fucky. Your explanation clears most of it up!
Thanks for the clarifications, I agree with pretty much everything.
I don't know how "painful" this would be. And I refer to us, those who are hustling here since STEEM was 10 cents.
Do we really need "wow, nice post" comments to clog the blockchain just because we need "users"? I don't really think this is the kind of adoption that will push the platform up. On the contrary. With all due respect to the efforts of many of the newcomers, I would really think we would be better off in a smaller, but more articulated company.
NO
Ten times NO.
We desperately need a simple quantity of user even if we sacrifice quality a bit. The sheer numbers is the power of any social media. Numbers drive adoption further and bring businesses into the network. Right now I prefer 1 million spammers to 10k genius-level crypto-folks. Because no single company will expand its social-media efforts into the space where are 10k active accounts.
I'd said no matter how much I love Steemit but if we won't reach 1 million active users this year I get my investments off the table.
(from here)
Have a look at the first 4 years. reddit followed pretty much the same exclusivist / elitist community style steemit tries to implement. Also, this charts really shows what I understand by "long game'. The first 4 years on reddit were absolutely rubbish, I agree, because the community was so elitist. But that core of elitist members generated a stable-explosive growth once they got enough "weight".
Numbers never lie.
Of course, we can gently agree to disagree.
Nice chart. But steem has much less than 8 years to reach 1 Mil of users.
what is it at right now? user total?
58k active users...
https://steemit.com/steemit/@penguinpablo/daily-steem-stats-report-saturday-march-10-2018
Thank you!
So are we on year 2 right now?
SBD pump and dump started happening every Saturday night through Sunday night since August.
But, I'm all for getting rid of voting bots and automated voting.