RE: Basic Game Theory: Why Steemit Whales Won’t Sell Past a Certain Point

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Basic Game Theory: Why Steemit Whales Won’t Sell Past a Certain Point

in steemit •  8 years ago 

Humans aren't robots. We cannot assume enlightened self interest. As far as the price of Steem goes, will it matter? If Steem gets very cheap then it becomes more attractive for people who want more Steem Power. It allows people who have Steem Dollars to sell it for Steem and Power it up in the hopes the price goes up again.

Steem used to be 20 cents, and there is no reason to believe it wont go back to 20 cents again or at least under $1. We have to wait and see but I expect it to go under $1 for a brief while.

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In fact, experiments have shown the opposite, people aren't entirely self-interested. Game theory has it's applications but they are limited. I can't say I ever ran across one that wasn't just something shoehorned into a situation. One of those was a game theory model trying to model systemic risk in the financial system, nice exercise but not very convincing. It most common in commodities for producers to do the opposite one might think. If prices are down, they will cull the herd and sell it off either for slaughter or alive. This is because their expectations are for prices to stay low, not just continue the trend necessarily.

The scenario here is a bit different. Whales have their profit and want to preserve it. Each downtick gives them angst and the future uncertain. Mkae of that what you will.