Supply and Demand - An Inconvenient Truth.
My Dad always explained it like this:
- There is one plumber in town
- He is really busy and is able to raise his prices
- He buys a Lambo (Dad didn't say this)
- Other people see this and they also want to be a plumber
- They go to Plumber School.
- Now there are 10 plumbers in town.
- There are only 9 backed up toilets at any given time
- The plumbers are cutting their rates and looking for work
- Nobody wants to go to plumbing schoool
- Eventually, there is one plumber again.
- Repeat
It is an oversimplification, but I like it for just that reason.
You can replace the word plumber with Authors, Artists, Thoughtful Bloggers, Singers..
If money wasn't "A thing" the plumber would still be needed, and people who need him would try to gain favor with him as long as his services were needed or desired.
Before Money the tie-breaker was brute force.
Some say they would prefer "First come first serve".
That is unfair to the old and the slow, and it creates situations like "Black Friday", where people stampede to get cheap things. It might even be a factor in Steem's current distribution.
There will always be Supply and Demand and some form of cultural solution to get the things that many want.
There are 736,566ish Steem printed per reward pool.
There are a lot of people here who want to earn those Steem.
If the price goes down, more people want to sell them then hold them.
(not enough demand)
They are earning Steem through blogging, singing, cleaning, memeing, programming, selling, renting, etc.
Exactly the way humans treat things of value
Looks like we are starting to build an economy to me!
This is developing nicely. Less than a year ago there was only about 150,000 accounts when I joined and now almost 1,000,000! Just keep working it and talking to people about it. I don't worry about the price right now just keep collecting Steem.
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Thought I'd leave a comment for you, while everyone is reading Dan's long post on medium.
There's gonna be a million plumbers soon :)
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The number will continue to grow for sure. That will be good. I actually think the community gets better when we have more people around.
Steem isn't going to get easier to earn though. If it does, that will not be a good thing.
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Agreed. We're on the way somewhere. Will it be somewhere good? I think so but we will have to wait and see.
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The one thing I like about steem is the powerup factor.
It basically locks up the available supply so it can't be sold on a whim (crashing value). Therefore supply won't get flashflooded all of a sudden by crashing markets..
That's a win right there for me.
ps. nice analogy
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Everybody wants to post, to earn, to trend.
Far fewer want to curate, vote, and respond. To support other people and to focus on their community even if it means not getting personal hype or glory in the short-term.
Right now Steem is overloaded with content... you could call it a "bubble" of content. There is still plenty of room for excellent creators, but a lot of not so good ones will have rough time in the future.
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I guess that's why we're starting to see upvote pools or authors regrouped by theme. But in the end... money brings money.
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I'm excited. :-)
I've just been roaming around looking at old bloggers that I haven't been paying attention to. It is amazing how much some of them have accumulated over time. Dedication, persistence and hard work.
About time I started copying them. :-D
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Exactly this... The more demand we get, the more people will come.
It will never be easier to earn Steem than it is right now. If it gets easier, that is a big problem. :)
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Agreed! An economy is built over time and it is ever changing. To assume it is an out of the box concept, or set it and forget it model, one will be left in the dust as the innovations come on in rapid succession. It's all pretty exciting.
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Hi Whatsup,
Stating as it is.
So, the best is for Steem and SBD to raise in price to help all Steemians look like?
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If Steem is to create a demand, it will never get easier to earn. People can spend their energy hating Supply and Demand, or they can spend it figuring out how to earn it, the way it is.
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Good analogy. Supply and Demand - I believe it is also the underlying cause of it getting harder to earn money mining, specifically cloud mining. Returns from Hashflare and Genesis have also fallen off sharply.
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Agreed.
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I think so too, kinda looks like an eco-system :)
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This post has received a 25.57 % upvote from @booster thanks to: @whatsup.
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Nice creatived its i saw, very interested
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The chain of Supply and Demands i read this theory in the general economics when i was at my university level. Your father explained it more beautifully than my professor. If we scarce the supply demand will be increased and vice versa.
Hodling the investment is one of the best thing in my view point @whatsup :)
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Throughout history there was a debate about the human being treated as merchandise. I believe that the cryptomonedas, can positively alter this, decentralizing the power, which is in the hands of a few, the cryptomonedas came to stay. Nice post. Regards.
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It will be really interesting to see what the next couple of years will mean for Steemit. I do hope we are heading in a good direction.
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Ha! Agreed! Such an awesome way to explain it!
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