Thoughts on...steemCreated with Sketch.

in valuation •  7 years ago 



Valuation....what is it worth.
.....................................................................................................................................................

I'm sure that you have all heard the saying
"That new car you just bought looses a thousand dollars in value the minute you drive it off the sales lot"
why would that be? The car hasn't changed one tiny bit in that length of time. It's still the same exact car.
.

I'm sure that you have all heard it said.
"The price of real estate is increasing...the value of that home that you bought ten years ago...has doubled."
why would that be? The house is TEN YEARS old...it's starting to show it's age. It needs some repair here and there...it needs some fixing up.

I'm sure that you know about computers. Once computers cost millions of dollars...and now they are cheaper than a set of encyclopedias.
.
Uh...you don't know what encyclopedias are?
.

.

Er...as I was saying.
.
Why do SOME items loose value and why do SOME items GAIN?
.
I'd suggest that before anyone scoffs at and are disrespectful about the value of Crypto
(especially Steem)
that they be
able to answer that question in great detail.

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"Valuation" is a mystery to me... I understand the psychology and the mechanics, and how to "use" that, but I am completely clueless as to the tangible underpinnings.

I know I could move to Salina, KS and buy a beautiful, fully restored and renovated 1920's Craftsman home, 1700 square feet, for $110K. I know that same pile of brick, wood, wiring and plumbing would cost $1.2M in Seattle, 50 miles from here. I know the LAND (aka "location") the house in Seattle sits on would be $300K, $20K in Kansas... so if the wind blows both down, the same pile of wood and nails would be $90K in Kansas and $900K in Seattle? I'm sorry, but carpenters and contractors do NOT make 10x more in Seattle... so something is "not right."

I call it "selling AIR." One of my pet peeves...

I don't understand it either.
which is one of the points I was attempting to make.
if two identical buildings have EXTREMELY different values.
then something ELSE is going on.
same thing with Crypto...it has value..but why?

One of the reasons I'm a proponent of getting a Steem based economy going-- for art, music, services, products-- is to create a tangible reason for the existence of Steem (the token) that few of the other cryptos have.

From where I'm sitting, commerce is the best shot we have at getting to build an alternative economy of sorts. Cryptos... without "something" attached to their blockchains, have (to my way of thinking) no more value than small pieces of paper with pictures of Ben Franklin. It's just an illusion. But if I can actually buy a bag of beans with Steem? Then it suddenly develops a tangible reason for existing. Even if "our economy" is just an agreement between... I dunno, 1/2 million Steemians.

EXACTLY....
oh...and don't forget 3D printing (plans)

Hmm. I'll take the bait. The car loses value because supply of new cars is effectively almost unlimited, once the care has been "used" it can never be new again, and there are lots of new to buy.

The house gains value - in many cases but not all, due to location, location, location. You can't replicate the location, assuming you have something reasonably unique and interesting about the location. Limited supply drives prices up.

Not exactly analogous to cryptos. Some of the crypto value is due to network effect. Value of houses and cars don't benefit from any network effect.

Steemit and steem can lock in network value if they can demonstrate that time to 2 million users is going to be 1/2 the time it took to get to 1 million users.

STEEM On!!
DaveB

What you say is true...BUT.
I don't think that's the WHOLE truth.

If I'm held to account to tell the WHOLE truth, i should just stop posting, LOL. Not enough characters on the key board

the best way to lie is to just tell enough of the truth to give the wrong impression.

Sir, I think you just accused me of being a politician. No need for that kind of crass language when we were otherwise engaged in polite discourse

I didn't accuse you of anything.
If I had accused you of something I'd have come right out and said it.
Do you deny that telling the partial truth and spinning it is a good technique for disinformation. (sometimes called lying)

Great post and made you think a little 😊 so true, some of the saying I'm sure we all have heard but mabye not really thought about the meaning of it.
Upvoted 👍✌️ Have a great evening

thank you.

You are welcome 😊

For all you puzzled millennials, my father's encyclopedia joke:
Now that your son is going to college I guess he'll be needing an encyclopedia
Encyclopedia me arse! He can walk the same as I did!

Capitalism. All while children are starving and food is being thrown out in the dumpter out back at a market near you.

Starvation is political
There is more than enough food for everyone on the planet.
because of capitalism
if children of a country are starving.
it's BECAUSE their political leaders caused it.
Capitalism is the best thing...EVER.