Tuesday ~ 4/16/2019 @00:32am
The value of Steem is $.41 per token... Ranked 52 in CoinMarketCap.com. The value of Steem Dollars is $.99 per token... Ranked 329 in CoinMarketCap.com.
I remember some years ago, before the turn of the twentieth century, talking to a numismatist about real money. The premise at that time was the Y2K computer clock glitch that was going to wipe out the fiat currencies on deposit in the central banking accounting system, and the world civilization would collapse into mayhem. It of course turned out to be nothing more than a hoax!
All the pandemonium over the collapse of the financial world resold the ancient old idea about money ~ It is the tangible precious metals of silver and gold.
One of the discussions at that time I am reminded of was the difference of price and value. It wasn't hard to understand the reality of silver and gold coin, and the practical application to a modern day lifestyle.
One thing I remember the numismatists at that time were saying was, coin is real money. Fiat paper money issued by national government authorities was not. The whole of the global economy is going to collapse because we abandoned the gold standard.
They also made a very clear argument, that silver and gold coin maintain its purchasing power over time. Whereas the fiat is subject to hyper-inflation. One example I remember was going to the grocery store and using the one ounce silver coin minted by the U.S. Mint ~ certified weight and content. No question the U.S. precious metal coins were king!
In the example, based on a real financial crisis, the merchant would accept the coin, say the One Dollar Silver Coin ~ the Silver Eagle... And the coin would purchase as much as $20 USD! The rationale for the merchant accepting a one ounce coin engraved with $1 in exchange for $20 USD of goods is because it is real money, and the fiat paper was not.
However, the honest analysis concluded that the Silver Eagle, although it is real money with say a $20 USD value, could only really purchase $1 USD of goods. The merchant without a financial crisis with hyper-inflation, is only obligated to apply the engraved $1 USD in the exchange of goods. Therefore, price and value are NOT the same.
This is the same general perception that kind of gets dismissed when applied to cryptocurrencies. The price of Steem and the Value of Steem are not the same thing!
In my opinion, it may be a critical error to allow the Steem reward payouts for producing blog content and performing stakeholder actions like curation, to be directly tied to the market value of Steem.
It would stabilize Steem reward payouts. The blog content produced would have a standard price upon publication which is based in Steem Power. The same type of pricing could be applied to curation... A standard price for upvote would be based in Steem Dollars.
The value of the rewards become a factor when you cash out of the cryptocurrency into fiat ~ say USD or Euro. The market value of Steem Power earned would be different than the price for the Steem blockchain commodity ~ the published blog content. Likewise the price of Steem Dollars earned from curation would be different than the market value of Steem Dollars.
I think much of the attrition and retention of active Steem accounts would be resolved. All of the community initiatives to deal with that 90 day window would be a lot more effective. That major improvement of the Steem blockchain would make a radical change in the perception of Steem's market value.
I believe it would cause the market value of Steem to trend higher... Steemians would receive the benefits of higher market value payouts when they cashed out their earned rewards as an Author and Curator.
The Steemian Confidence Index will dramatically improve. When it does, the draw or attraction to the world's #1 social network will reflect a parabolic curve never seen in the blockchain ecosystem.
It will be impossible for the rest of social media networkers to resist on boarding to the Steem blockchain... So let the Steeming good times Steem On with Godspeed!
Thanks Steemians for taking the time to visit my thoughtful reflections.
Happy blogging Steemians!
