RE: TIL: Today I learned about the Steem White Paper (Detailed Post)
As a negotiable instrument needs to be back by something of value and most currencies are backed by gold. STEEM is backed by the user base.
As the user base is the only ones selling and buying STEEM it would be backed by the user's own pockets. This would entail that STEEM is VERY VERY VERY fickle, but also measurable in worth.
As there is a supply and demand of STEEM there is also people who are willing to pay in other forms of currency for STEEM, this would also back its value more.
As far as a concrete financial worth, and backing of what we know as STEEM, there isn't really one.
I do feel that as the platform grows and develops further we might see someone or something backing STEEM to give it real value, but for right now I only see the user base supporting STEEM's value and worth.
I am glad you see me as a good person, I strive to be the best I can be, not just for myself but for all those who come in contact with me.
Your words are meaningful and very much appreciated my friend, thank you!
~ @Timbo
I very much appreciate what you say, my friend! There is more truth in your summation of the value of steem than I have heard elsewhere.
To me steem has a value based upon the future value of steemit,
There is no other basis. It is very much like an equity valuation, net asset backing plus a discounted projected cashflow formula.
My concern is that less than 400 names hold 90% of steem so which analyst is going to stick his chin out and profess a value?
Decentralisation outside steemit is what I profess as well as within steemit but the copies are going to be along very soon and 'busy' is just a sham.
Ah, yes indeed. I can understand your point clearly and I would have to say that I agree.
If you think about the way USD is though 1% hold 99% of the wealth in the USA, this causes most people to barely make it with their heads just barely bobbing above the surface, I can only imagine the suffering.
Here on Steemit, I feel that this is more of a "Test Run" but as we also see Bitcoins, being highly valued all over the world for their anonymity as well as their use in exchange for just about anything worldwide.
BTC is not backed by anything either yet, the uses it provides gives it real value.
Wow, very good points, and conversation thank you for this my friend.