Where does the Money Come From?
Have you heard that Question?
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Shirley you have.
I've been thinking about it. Here's what I think.
The Steem eco-system (what else would you call it?) has this think called Steem.
It's a crypto-coin. There are lots of other crypto-coins but this one is ours.
There's a thing called an 'exchange'. Lot of them actually. There are exchanges that buy and sell stock, buy and sell commodities, buy and sell fiat currencies (dollar, pound, Frank and Peso forex)....and crypto-coins.
The market..those who engage in that activity...assign a value to what they buy and sell. Be it gold, hog-bellies, cattle, Botswana pula, BitCoin or Steem. The market assigns the value.
That's it.
That's where the money comes from.
Exchange for or with a currency- Steem- will generate some value. The more people use it, more safe it will become. Eventually as a huge number of people consider it OK to pay or receive Steem- its value will rise and rise in comparison to other currency.
more people =/= stable blockchain.
you also need a somewhat decent spread SP wise.
we all hope so.
So basically as long as there's huge demand from the market there will always be a value
ANY demand, huge or small.
then there will be value.
Yeah, it all started when people thought exchanging gold for food/services is more convenient than changing food/services for other food/services. Then paper money replaced gold because it's more convenient.
And then paper money's value started to get un-backed by gold because of what you mentioned in your post (or maybe some conspiracy?)
And now we are at this stage: Is cryptocurrency more convenient than paper money? I think it is but only the future can prove.
It's gonna be a fun ride which ever way it turns out.
If you make some money off of 'uninvested' Steem
you're ahead.
You can't lose.
very good answer , I came to the same conclusion
People make it SO complicated.
kinda simple really.
yup
You are right, the market assigns the value of whatever. Wish there was a money tree to get money from... :D
steem IS a money tree.
all you got to do is harvest.
Actually true ;)
Exactly true,,, its very simple and brilliant think,,, but, I think if the money is present because it is needed to standardize the value.
The money comes from the value? Still confusing.
economics 101
economics is not my favorite subject. LOL
then you will ALWAYS be at a disadvantage and people WILL take advantage OF you.
there's no time like the present to brush up on the basics.
Will do. Thank you!
High demand brings about increase in price of any goods or services. If more people need steem or SBD the market value will increase and every whale steemian we smile back. The problem in steemit i have come to realize is that we have greedy whales who only use it for business but don't want to promote steemit. People are getting duscouraged everyday and many have given up and more to come if this problem is not adressed. Thank you
I suggest that you attend to your own knitting and leave everyone else to attend to theirs.
steem would be damn near a billion bux market cap and $3.35 if people were getting discouraged.
Unless you are the federal reserve of course - but that's a whole other story!
Dollars are no different.
the Fed is similar.
econ 101
No, the fed prints money and decides the values through interest rates. - zero to do with value. For value to be found, you cannot have fiat money controlled by a central bank, who prints the money, and also deciding interest rates.
econ 101
Isn't the USD traded on the international financial markets?
(real life)
....is this a serious conversation?
definition of money - means of exchange paymenyt and store of value - currency and money are not the same.
if someone decides interest rates and prints money- they alter the valaue of the unit - therefor by definition,not making it money- just currency.
the value of the dollar since 1913 has dropped 98% ish - making it not money ( still legal tender) but manipulated currency...
you can trade your dreams with my unicorns if you like - it doesn't make it real.
There has been no reality in US markets since Jekyll island ( and before).
Debt based monetary systems have to implode. It math.
... they last 40-70 year cycles - this one has lasted longer than normal..(due to changing the petro dollar as backing the US dollar, and leaving the gold standard in early seventies)
I wasn't being condescending, btw - I can give you pointers if you don't know - lots of stuff on you tube to explain it.
I was assuming you knew about this stuff - soz.
Happy to go through it all..in 10 hours or so...
not to be condescending.
but I have two business degrees.
YouTube does not impress me.
Okay, cool. I have got zero degree's....
(... but a masters from the school of hard knocks... boom! boom!)
...so, if by market - you mean free market- (there really isn't any other type - or it's not a true market).
then value of anything (true price mechanism), can never be employed.
Not If there is a centrally controlled authority issuing the money and that authority is deciding the value of it. (interest rates).
...And that's before we get into fractional reserve banking with interest! lol
I know of 2 bankers who I had to explain what money was - and wasn't.
One of them had a degree in economics! Once you got past Keynesian economic theory, he was lost.
Seriously.
I went to the hard university of hard knocks too.
graduated sigma come loudly.
Steemit seems to be acting up.
Half my replies won't fly.
I'm gonna go take a nap.
talk to you later.
if you differentiate between money and currency (most people don't) then I concede your point.