The old financial paradigm required intermediaries to act as a means of value transfer. These banks were needed in the past, but no longer. It’s now possible to send transactions in very small amounts multiple times and typically make up for a single big transaction without transaction fees. The above service currently uses Twitter to transfer Steem, but the future will see this on many different social media accounts in many different cryptocurrencies and use atomic swaps.
In the same way that bitcoin started to disintermediate Western Union and Paypal in the 3rd world, Steem will begin doing the same thing, particularly in more developed nations. As a software business owner, I’ve always had a lower limit that I had to charge when using credit cards because anything below $5.00 just wasn’t feasible. Anything less than that would get entirely eaten up by the banks in the form of various fees. With Steem, there are no transaction fees whatsoever, so one can send anywhere from a hundredth of a penny and up.
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I know what you’re thinking… too good to be true. I’ve been like this too, since the 60’s with the big black boot of authority on the back of my neck. Long term this will turn most people into cynics. I still don’t trust advertising to this day and have long since avoided anything that’s been overhyped on the media. I always think “scam” first. If I didn’t happen to already understand the underlying technology this is based upon, I would still be a hard sell.
The old paradigm came with strings attached, particularly KYC (Know Your Customer) which acts as a form of financial censorship that gives some people permission to trade and not others. One achilles heel of the banking industry is that they can’t handle micro transactions because they have to charge fees as intermediaries. Steem has already solved this issue as well as Bitshares and soon to be released EOS.
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In the future one will be able to buy something on layaway for a period of 60 minutes using a smart contract that pays the merchant 120 times over the course of one hour 50 cents each time for an item that costs $60.00. Why would anyone want to do this? First of all, because the old financial system can’t handle the backlog and second of all because it sidesteps KYC. Small is the road to freedom.
Once everyone on social media has received a tip in Steem which will be in the hundreds of millions, the accountability of the KYC system will collapse. It’s a bad system and it’s worse than useless.
Two Diametrical Trends (Large and Small : Global and Local)
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This is the basic lesson. The mass media has been trying to associate two ideas together, that “globalism is good” in the minds of the public as a means to manufacture consent for large government. The idea is that if we have a single system which everyone is under, that it will be more efficient and make everyone happy. This is far from the truth. Uniformity is known to introduce depression. Change is what keeps us alive. And lastly, having everyone under one roof is totalitarianism.
The reason this mistaken idea is promoted is because globalism, which is like a large transaction, allows parasites to scrape more off the top in fees. When business is localized and non-hierarchical, it has the effect of eliminating middlemen. When transactions become small, but many, the middleman is forced out.
Donations (public bitcoin address):
3FwxQsa7gmQ7c1GXJyvDTqmT6CM3mMEgcv
The banksters will try to criminalize this. They will fail.
We really live in an amazing time. So few people realize that everything is changing.
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The more micro transactions, the greater the tracking nightmare. When authority is finished writing code to aggregate these into summations of accounts, that's when full encryption, Schnorr sigs and other disintermediation techniques will need to be implemented.
They've got a habit of being a couple steps behind as evidenced by several senators questions of Zuckerberg. They are clueless and primed for the fall.
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I'm still a bit confused about the point of breaking up a transaction into multiple micro-transactions. How big of an advantage can that really be? If privacy is the goal shouldn't we put more interest into privacy coins?
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The idea is not to hide your tracks, but create so many of them that they cannot deal with them anymore. Its great because you can always say that everything is out there in public :)
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It comes down to the fact that one cannot do manual calculations of taxes on library of congress level output. They get drowned in the details. Not nearly enough manpower to handle it.
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Heh. When I was doing my taxes, I talked to my CPA about crypto and my possibly confusing situation with a gazillion micro transactions related to Steemit. She said the IRS is laying people off in droves and has only a vague idea of how to track crypto. I reported my taxes as best as I could, be she was not concerned about minor discrepencies.
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Same here. My accountant said they have no idea how to handle their "crypto" problem and said "new legislation will be coming soon".
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Woooooo! Lay them ALL OFF :)
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She said layoff but she probably meant they’re slow at replacing those who leave. Same net effect though.
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I read your comment on SteemTipper, this makes a lot more sense now. Almost seems like a shade of peaceful protest... very interesting. Compound their incompetence and greed with a flood of information that they have to sift through to enforce their antiquated and unfair laws. I like it.
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Wish we could have more exchanges in the less-developed countries. I earn Steem dollars and the middleman takes a lot of my money. But it is a great service for the future indeed.
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Maybe instead build up Steem Power as much as possible. I can understand the need to siphon off some SBD for a short-term income stream, but converting some to Steem Power with a long-term view might be a smart move.
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That's a great Idea. Thank you so much.
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How does that help you take out your earnings with less fees?
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It doesn’t. But I think that Steem has so much potential upside that I would only convert to fiat now what was absolutely necessary. And long term, the need to convert to fiat may be less of an issue, as crypto goes mainstream.
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currently it can be hard to offramp, but I think that in a few years p2p (smartphone) payments to merchants will be as usual as cash.
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That will be a great news for me at least and for all the steem users. Looking forward to that. Many opportunities waiting for us
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Blockchain is the future, I don’t care what my friends have to say. HLOD
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HLOD? Hold Long or Die?
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oops HODL
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It would be desirable that the leaders of all countries adopt adequate laws on crypto currency and allow it to be used everywhere.
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I also study new technologies for using money. It used to be difficult to use a bank card, but now it's used, It's become commonplace. We will also learn new technologies!
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bitcoin is very powerful
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