Where does steem money come from? (explained to my daughter)
1 of my 10 steem will be lost within one year!
This is what a 10% inflation rate means : If I bought 10 steem for 10 dollars, I will be able to sell them for 9 dollars in one year from now. Meaning I lost one dollar in the process.
This dollar is what will be used in order to pay the authors for their work.
It is a great thing to invest in this platform. But I think a lot of us need to understand that we are paying for the rewards and that the money doesn't come from nowhere!
Eventually, the value of steem is growing because more investors are getting to know the platform. In order not to lose money, steem increase in value has to beat the inflation rate.
How much value could steem reach in the end?
What if steem capitalization were to reach facebook one's?
Facebook market capitalization lies at 520,4 billions right now. Steem max supply is 263,2. This would lead to a 1977 dollars per steem. Crazy isn't it?
What if steem capitalization were to reach twitter one's?
I like better this comparison. Twitter market capitalization is 15,67 billions. This would give a 59,54 dollars per steem. I would buy it also!
And you, what do you think? Is steem geared to beat twitter and then facebook?
I believe Steem will continue its growth due to its platform to allow many of us from all walks to express ourselves without fear of be discriminated against like Twitter or Facebook - it is also a great place to become informed on many things that are just coming about like crypto currencies etc. So yes I believe Steem will rise to the occasion
I'm pretty confident about steem rise, but I wonder where it will stop. I think its model will have to change eventually!
Its a very hard subject to explain my parents thank I am insane...
Maybe is it more difficult to explain to your parents than your children!
I would believe so, my parents are finally comfortable with the stock market...
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I like that example. The market moves the price of the currency. The more people that are active and posting good content the better off we all are for the good fo the community.
we will see if this model works better than facebook :)
Nice article ! Thanks !
thanks for the compliment!