Why Steem Is Much Better Economy Than What We Presently HavesteemCreated with Sketch.

in #busy5 years ago

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It is no secret that the economic structure we present operate under is awful for most people. Look around the world and it is easy to see how so few share in the wealth that is created. No matter what the economic/political system, the average person is not doing so well.

In the United States, the conversation centers around the income inequality and the distribution of the wealth. We now operate under a system where the golden rule is applicable: he with the gold makes the rules.

Most people have issues paying their bills. Some might say excessive spending is the cause of this although that is only a fraction of the problem. Real wage growth was non-existent for the past three decades for most people. This is a situation I feel will only get worse as automation enters the picture.

While the world focuses upon the gloom and doom, I feel we are sitting upon the ideal answer. Crypto-economics is going to change everything. It is an economic model that attacks the two main problems that are the cause of economic uncertainty for most.

There are two things we see taking place on Steem that are different from what we see in the traditional economies.

Growth/Expansion

It is a simple premise that, over time, the goal is to growth the entire economy. Some countries, like the United States, traditionally did fairly well in this arena. Others, such as the Soviet Union or Cuba, failed miserably.

The idea is to keep creating more value and grow the whole. As the entire package gets bigger, everyone can share in more. Those countries that excelled at this saw the standard of living increase over time. The ones that did not, they lagged behind greatly.

Of course, everyone does not share in the pie evenly which, traditionally, is okay. Not everyone is making the same contribution yet most are benefiting to some degree. Again, look at a country like the United Stated from the end of World War II through the turn of the century for an example of how this worked.

The challenge is when it does not work.

Economic Distribution

Countries like England and other socialistic countries, over the years, offered a much better system of income equality than what is presently being seen. The challenge here, for the most part, is that it usually came at the cost of growth. In some ways this might be good except for the fact that we are seeing a situation where the growth in many of those countries is heading towards the negative. Even flat is a problem when you have an expanding population.

This situation is taking on added meaning because it seems every economic system is headed that way. Without getting into the economics, when you have so much going to servicing of debt along with financial engineering, things are not going to end up well.

Whatever happens, we know the distribution over the past few decades is only getting worse. Asset pumping benefited the select few while leaving the masses out. Technological advancement did wonders for society yet also helped to squeeze wages. It is difficult for workers to see wages increase when technological options exist to replace jobs.

There was an article that I came across last week that caught my attention. It talked about the fact that Ethereum created more unaccredited millionaires than all IPOs. The article was a bit of a clickbait yet it makes the point that Ethereum investors were not millionaires before investing while IPO investors (accredited investors) are millionaires.

https://www.cryptotapas.com/ethereum-made-more-unaccredited-investors-millionaires-mashinsky/

This is an example of crypto-economics at work. It allows the average person to participate.

Steem is a prime example of this and we see it happening. So looking at the two variables, we see both taking place on here.

The first is growth. We see the Steem ecosystem expanding. The value is going up on a consistent basis. We are seeing more users join along with an increase in development. Each new application adds value to the system since it is something else for people to use.

This is something we are going to see for a long time into the future. As long as we have a dedicated team of developers, which keeps expanding, we will see the value of the Steem ecosystem grow. Our virtual "pie" will get bigger.

Compare this to what we see with the global economy. This is something that is slowing, if not contracting, in most areas. While I do believe we will see a massive explosion over the next decade due to technology, the odds of it being outside the hands of a few is unlikely.

Which brings up the second point for the Steem ecosystem.

On here, we are seeing the distribution spreading out. Not only is this true for STEEM, but there are a number of other tokens already created that are tied to this blockchain. @steemhunt and @dlike are already offering IEOs on different exchanges. Steem-Engine is open and creating tokens. Each day, people are not only earning STEEM but also application-specific tokens. Depending upon how the application fares in the future, these tokens could provide people who are presently earning them with a tidy sum.

Crypto-economics is an incentive based system. This is very important. As the first variable is addressed, growth, the second MUST also follow along. It is impossible to have an significant growth without the distribution of tokens. They go hand in hand.

The reason why there is growth is because there are tokens distributed to those who are adding value.

They cannot be separated. We are well aware of how much value attention and activity provides. The question is who profits from it. Presently, the mega-corporations listed on Wall Street take the lion's share of the money.

On Steem, it is a much different situation. The tokens created by the different applications are distributed to the users. People are able to earn different tokens for the activities they engage in. The value they bring to the ecosystem (and sub-ecosystems) is rewarded. Tokens provide the ability for direct reward.

This is what crypto-economics is all about. We will see more applications being built on here which will attract more users. As the user base grows, those people will be adding to the value of the different platforms which will earn them tokens. This will lead to even more development, once again, drawing in more users.

It is a wonderful upward circle that occurs.

So while the rest of the world goes nuts about the economy, income inequality, and slowing growth, I take solace in knowing that crypto-economics is growing on a daily basis. We are seeing expansion all over the place. At the same time, on Steem at least, more tokens are flowing into more accounts on a daily basis. This will only increase as more applications come on board.

At the end of the day, the goals of both developers and users are aligned. This is something, for the most part, that does not take place in the traditional economy.


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I have not seen better ecosystem or economy among all Blockchain Networks yet.

I think that we will have a better economy in the future as more people get involved and the distribution balances out more. At the moment however I can't see that much difference between steem and the outside world as the minority hold most of the power and make the rules. That is changing thankfully but not there yet.

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That is true although I think with the other tokens being created, like HUNT, are changing that. Each day we see other tokens distributed to holders who do not have a ton of STEEM. And these tokens are evening out quicker than SP.

Ya it's changing and has changed massively since I joined here bit still a long way to go. We can however see what could be possible in years to come.

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It is not an overnight process and the pace is slow. That I will not deny. Things could move quicker but they are moving.

Another year, things will be further along than today. And two years will move past one year from now....and so on.

I absolutely agree with you but don't see this improving whatsoever. The most powerdul players are the tech minded intelligista and people supported with well payes 'real' jobs.
Tokenisation is being supported by delegations from the already SP rich who get more favourable terms and bonuses thus exponentially increasimg their holdings.

I still after 18 months here see nothing more in the future other than a change in the higher orders from old money fiat wealth to new order crypto wealth.

Who is to say their aims are any more humanitarian than than those of the old world order?

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It sad you see that because I regularly do a post each month that shows how the distribution in SP is changing.

To believe that it is not is categorically incorrect. There are plenty of examples of people who are not technocrats who are on here pulling in more SP on a monthly basis.

And this is only SP...this does not include those who are using the applications on a daily basis that pull in tokens. Actifit has over 43,000 different token holders at this point according to their website. Those are not all large SP holders...in fact McFarhat told me most of that the largest percentage of their upvotes go to smaller accounts. Those are the people using the application.

So it is shifting over time. This is the big difference compared to the old world order where the flow of wealth/money is in the opposite direction.

We all know that money makes money and getting in early makes a huge difference. That will never change. I got in a year ago and that gives me an advantage over the people from three months ago.

The difference now is that the people starting off have a much better opportunity to grow and earn than I did at the start. Back then a couple of people held all of the power. That distribution of power is shifting, that's a fact. Now take @actifit as an example. If I join today i can instantly earn both STEEM and AFIT tokens without stake and without needing to beg for votes. It is entirely done through my actions letting me grow directly in proportion to what i put into it. That is where the change is coming from.

The growing automation situation is exactly why I forsee the rise of investing in bots for profit. This can hugely impact people who become displaced due to the automation. Different types of bots and automatons are already being used across an array of industries and I believe people should be able to take part in this growth financially. You can see the writing on the wall.

The industrial era is long gone in my opinion, we are now in the wake of AI and information age. Those who have information and creator will get on top I guessed!

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The divergence may not be far behind as the efforts and benefits of tokenizing the world from assets to products will be a cross that provides opportunities to both sides while still fostering the ability to those segmented from the current economic systems.

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Wealth distribution in steem is actually much more than in the US. In the US the top 1% owns 38% of the wealth. In Steem the top 0.008% owns 48% of the wealth. Also, only the top 0.75% of accounts earn any income at all.

The system in the US has been in place for over 100 years....Steem for 3 years.

Give it some time.

Yeah, maybe it just needs time. Fun fact, you have the 58th largest income!

Yes @samuel-swinton. It does take time....the pace is slow and does not show signs of changing overnight.

Thank you for the tidbit on the income...how did you come across that.

Thank you so much for participating in the Partiko Delegation Plan Round 1! We really appreciate your support! As part of the delegation benefits, we just gave you a 3.00% upvote! Together, let’s change the world!

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