RE: The Need to Consider Utility When Deriving Valuablity
An verry important aspect of behavioral biology and psychology which most people don´t know. Utility.
You described the utility of the currency STEEM and I agree, but additional and I think more important is the utility of the network (Steem), which is derived by the number of useful connections (utility) a node/user can make. This is what Metcalfe's Law describes: with linear growth of users, a network gains exponentially in value, simply because the number of connections grows with the power of two/n²/users² (or more correctly n log n)
5 users = 10 connections, 12 users already 66 connections. It's not only nice to know, its scientifically validated (for Facebook, Tencent, Usenet, Bitcoin, Dash, Ethereum) (Alabi 2017) that the network value/number of connection/utility correlates with the price or even more: when the price exceeds the network value, than it indicates overvaluation and the formation of a bubble. (Cermak 2017)
On the other hand, network splits or the loss of users can be more detrimental than most people think. With a linear loss, the global utility of the network decreases exponentially. Loss of 25% of users already means halving of the network value (Vitalik Buterin 2017)
resteem and have a blessed sunday
Most briliant comment I've ever read by far definitely, I really did think about this and I was brought to the limelight by what you've eventually just said now, I think it's utility can even be further ensured with your entailed explanations, I may even finish up and do a stance on your reply/feedback. Thanks for this.
I´m glad that you find it interesting. To hear your opinion would be very nice. I have come to no conclusion so far. Its not an easy topic.