RE: An Argument for Long-Term Rational Self-Interest Versus Short-Term Irrational Value Extraction
Let me just admit and say this from the beginning. The people who started riding the crypto train like me after mid of 2017 aren't the most faithful of the believers. We sway too much and act hypocritically.
It is like a panic syndrome that has settled in our brains that we want to ride the crypto train when it goes up but get out as soon as the downtrend begins.
Same idea can be extrapolated for Steem. We are here but do not believe in it. We want to extract as much as possible in the shortest amount of time and get out before the Armageddon is brought upon us by the government.
Weak faith of newbies can be too a large extent attributed to lack of knowledge. Sure mainstream is against crypto, but we as newbies don't understand that how much potential the mainstream sees in the blockchain and how much they too want to get in on the action.
Several points stuck with me as I listened to you:
- Short term value extraction vs long term thinking
- Separate pool for downvotes - a potential idea
- Bot voting to get visibility - Trending page is...........Let's just say that I only visit it when I accidentally click the trending tab (so almost never)
- Bots are rarely profitable.
- Token holders have the responsibility need to take up initiative on projects that have long term potential in helping the Steem blockchain grow. A responsibility shared on a volunteer basis
- Read this book 'Towards a zero marginal cost society' :-) Just joking
You also mentioned something that is very close to my heart - Comments (from 10:35 onward). I just wrote a post about it yesterday and have been writing about the importance of meaningful comments that add value to the post for past two months.
Thanks for sharing all this man! It's good to hear from you :D
This is a good explanation of one of the reasons that expecting everyone to just "work together, we're all in the same boat" is not realistic nor a useful approach in this context. Because we are really not all in the same boat. We have different backgrounds, perspectives, different goals and time horizons, different investment views and objectives, etc.
To get people working together toward a common goal requires an economic system where working together is viewed as rewarded, even by people with a short term time horizon and longer term skepticism. Because there will always be such people and we can't even say objectively that they are wrong.
So the economic incentives need to be direct and short term, not relying on a particular long term vision that not everyone shares. Only by getting those incentives right (or at least, more right than now) can we coordinate a large group of people with diverse perspectives and goals to actually work together, not because they want to or are told to, but because their individual self interest unambiguously depends on them doing so.
Yeah diverse perspectives play a big role in individual participation level. I was listening to @lukestokes during the video where he mentions the idea of volunteerism. People need to come forward to take up responsibility. The system is not perfect but we are trying to approach the idea of just rewards.
Greater the voluntary participation the more is the long term reward.
There is also the fact that reward is not just a one time payment, it's a stake in the system which incentivizes further participation.
Way to be an example of what you're talking about! Great comment, thank you.
A lot of new entrants in cryptocurrency haven't gone through the regret of selling and missing the boat. I've heard so many stories of people making 100x returns, selling, feeling like a genius, only to see things go up 1000x+ after that. Can you imagine selling Bitcoin at $2 after buying for pennies? Seems like a good trade at the time, but later you'd deeply regret it. That's why it's important to have a solid future valuation for cryptocurrency in order to trade it.
Thanks for the appreciation man. I still remember your "Digital Time Capsule" series - one of the greatest series that I have followed on steem. The idea of sharing those past tweets on BTC prices and related events was so epic. It really put things in perspective for me. To buy at $30 and sell at $150 might have looked good for a few months then only to turn into regret a few months later.
Personally I have not experienced this kind of thing till because of my relatively short time in cryptosphere but I have an inkling about the extent of that regret. I am hoping to get as much knowledge and experience I could under my belt this year and see if I am suited for this space for full time.
Once again, thanks a lot dude.
Exactly! This is why I'm trying to help people get a different perspective and think like a long-term investor.
You're very welcome. I'm glad what I'm posting is helpful. Thanks for the encouraging feedback.
A pleasure and an honor!