Reflecting on the Value of Steem

in cryptocurrency •  7 years ago  (edited)

At its peak in the Summer of 2016, steem was valued at over 0.006 BTC. Today that would equate to over $100 per unit of steem.

So while steem has risen in recent weeks in dollar terms, it is no where near its previous highs relative to the current $18,000+ price of bitcoin.

One must ask why this is the case, considering the meteoric and sustained rise of steemdollar (SBD) in the same period from under $1 to over $13 at the time of this post?

Let's reflect on this question while considering a recent tweet from Brian Armstrong, the CEO of Coinbase:

"In 2018 we get to see which crypto projects actually ship now that they have all this money. Common advice in SV but worth repeating: if you aren't embarrassed by your first release, you waited too long." - Brian Armstrong, 12/18/17

I would argue that unlike SBD, which has a circulating supply of about 4M , steem is constrained by its excessive supply of over 250M units.

Complicating things further, the disproportionate amount of steem currently in possession of Steemit Inc. is antithetical to the decentralized value proposition and corresponding predominant appeal of cryptocurrency to the majority of its enthusiasts.

Accordingly, I agree with the following post by @ats-david that calls for Steemit Inc. to burn a considerable amount of the steem in its possession to reduce the overall supply.

In doing so, it is my expectation that the broader crypto community will be more inclined to embrace the steem blockchain and the underlying potential of this platform as a first mover in promoting a social media experience that rewards users worldwide for their content contributions.

The debate about the quality of content posted on steemit and the negative impression that numerous spam posts have on the broader appeal of the site to serious writers/artists/etc. is beyond the scope of this post, so I will restrict my comments to the above for now.

What are your thoughts on steem lagging the price appreciation seen among its peers in the broader crypto space and how can this ultimately be addressed?

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  
Loading...

You got a 2.25% upvote from @postpromoter courtesy of @syncubate!

This post was resteemed by @steemvote and received a 33.08% Upvote

Interesting post. Very insightful.

Thanks for the feedback. What do you think about the proposal to have Steemit Inc reduce the supply of steem?

It would certainly cause exponential growth in the value but it would also add a lot of math to the somewhat confusing numbers to the brand new. The early adapters and hacker class can adapt. But for most steemit seems too complex

Ive been mining crypto since march. The learning curve is rather steep. Lullz. All in all im amazed by it all. My first coinbase was two ether @15 a piece. Within a week they were at 54. Wow yknow what a welcome.

Steemit takes some adjusting to. I've been in and out of the crypto space over the years. I just returned to it early last year after being introduced to ethereum. Steemit as a community was brought to my attention this past summer. I very much agree with the underlying intent of the platform to reward quality content, but I'm just not seeing it applied across the board.

A setback to serious writers/artists/etc. joining the community may be the way in which steem is allocated amongst a handful of whale accounts. Simplification needs to be adopted for the broader crypto world to fully embrace the steem blockchain, in my opinion. And in releasing it from its current constraints, perhaps the value of steem may finally realize its full potential.

@resteem.bot
Resteemed to over 6600 followers and 100% upvoted. Thank you for using my service!

Send 0.100 Steem or 0.100 Steem Dollar and the URL in the memo to use the bot.
Read here how the bot from Berlin works.
@resteem.bot

  ·  7 years ago Reveal Comment

This wonderful post has received a @syncubate 25.05% upvote from @hellowhale. Discord Channel: https://discord.gg/XG4y3mg Be sure to vote for witnesses at https://steemit.com/~witnesses

You got a 28.72% upvote from @votebuster courtesy of @syncubate!

The @OriginalWorks bot has determined this post by @syncubate to be original material and upvoted it!

ezgif.com-resize.gif

To call @OriginalWorks, simply reply to any post with @originalworks or !originalworks in your message!

Sneaky Ninja Attack! You have been defended with a 3.43% vote... I was summoned by @syncubate! I have done their bidding and now I will vanish...Whoosh

You got a 0.97% upvote from @upme requested by: @syncubate.
Send at least 1.5 SBD to @upme with a post link in the memo field to receive upvote next round.
To support our activity, please vote for my master @suggeelson, as a STEEM Witness

This post has received a 11.14% upvote from @lovejuice thanks to @syncubate. They love you, so does Aggroed. Please be sure to vote for Witnesses at https://steemit.com/~witnesses.

This post has received a 13.28 % upvote from @boomerang thanks to: @syncubate

@boomerang distributes 100% of the SBD and up to 80% of the Curation Rewards to STEEM POWER Delegators. If you want to bid for votes or want to delegate SP please read the @boomerang whitepaper.

This post has received gratitude of 1.21 % from @appreciator thanks to: @syncubate.

You got a 4.54% upvote from @allaz courtesy of @syncubate!

This post has received a 2.91 % upvote, thanks to: @syncubate.

0.58% @pushup from @syncubate

This post has received a 16.67 % upvote from @steemthat thanks to: @syncubate. Thank you for your support. Stay Updated And Use Cool Tools At SteemThat.com

This post has received a 1.28 % upvote from @buildawhale thanks to: @syncubate. Send at least 1 SBD to @buildawhale with a post link in the memo field for a portion of the next vote.

To support our daily curation initiative, please vote on my owner, @themarkymark, as a Steem Witness

iNTRO pIC-01.jpg

This post was resteemed & upvoted by @superbot - the Best Resteem bot on Planet !
Good Luck!

Follow for 10 minutes ,
Send 0.100 Steem/Steem Dollar and the URL in the memo that you want resteemed and upvoted.

So don't waste any time ! Get More Followers and gain more Visibility With Superbot

This post has received a 37.69 % upvote from @kittybot thanks to: @syncubate.

You got a 9.08% upvote from @upmewhale courtesy of @syncubate!

This wonderful post has received a @syncubate 23.57% upvote from @mrswhale. Discord Channel: https://discord.gg/XG4y3mg Be sure to vote for witnesses at https://steemit.com/~witnesses