Why current STEEM market cap makes absolutely no sense. //+ thoughts by Warren Buffet//

Lately i have been thinking about STEEM a bit more after having invested some fiat.. Not deeply in a way that i looked at code, but rather deeply in a way of dissecting in my mind the core aspects of the platform.

If you look at some of the traditional markets then there is a very simple and easily understandable aspect of them that makes far more sense then what is happening currently in the crypto world..
And for that reason i invoke one of the most hated individuals by the crypto enthusiasts.
Mister Warren Buffet..

I dont agree with him on most points but there was one interview where he made a statement that stuck with me because i could see some truth in it. Im going to link the video so its more clear what im talking about. I cut up the video because after that its mostly BS.

What Warren basically says here is that if you look to find a sound investment for your self, a smart thing to do would be to look at the potential of the asset to produce something of value. He gives a great analogy of a farm that produces crop which in turn you sell, etc and get a return on your investment.
This same logic can be applied to the stock market. You do not buy stock only because you think some other guy will buy it from you at a higher price, you buy it based on multiple factors, but in all cases something of true value is at the core going down the ladder.

With Bitcoin (and its clones) he mentions here, that is not the case. And i completely agree with him. Bitcoin is a tragically bad investment from that point of view. Now you could say: "Well if i buy at 5k and sell at 10k, how can you say it was a bad investment".
Well i can, because you do not determine if something is a bad or good investment based only on someone else giving you more than you paid for. There is more to investing then only that aspect. You need to look at it from another point of view.
If we look at a simple definition of investment:

An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future.

While anything really could be called an investment a good investment would be that which will both generate income and appreciate in the future.

If you are basing your decision to buy Bitcoin based on an assumption that you will eventually be able to sell it to someone else for a greater price you are a gambler.

And Warren is completely right in this case. If you think like a traditional market investor, Bitcoin (and its clones) isnt a good investments you can make because it produces nothing and creates nothing.

BUT

....

Warren decided to emit one thing. Not all people that hold Bitcoin are "shit investors". Some hold it for another reason. And that reason is that they do not see Bitcoin as an investment. They see it as a fiat replacement. They see it as something that will maybe one day replace the US dollar, the EURO, etc..
Not something to sell to a "greater fool" but to use as something that is far superior to the fiat we use today due to its unique qualities. Now i am of the opinion that BTC isnt the answer and there are far superior crypto out there in absolutely every way but thats a story for another day.
The core of this being:

People choosing their own preferred way to conduct transactions with complete freedom and no restrictions.

So as you can see, while i think BTC and its clones arent good investments, and when i hear Roger Ver and Vays arguing what a better "investment" is, based on the projected USD price increase, i cant but think they are looking for the "next greater fool"; i still believe that another thing is at play here.
Cryptocurrencies arent what you would just call "investing", they are the change in how we will conduct business and money transactions.

So how does STEEM come here in the picture?

Steem, imo, is a completely different beast then most. While you have platforms, like lets say "Stellar", that are superior to BTC, those blockchains still fill basically the same area of the market. They do one thing well, the transacting aspect, but fail again to fill the categories for what a good investment is.

Steem blockchain is not like that. It does the same thing as they all do, but adds on top of that the missing piece. Generating income.
A few points....

1. It has a working product
2. It offers a decentralized currency and transactions that far exceed the capabilities of fiat as well as BTC (and its clones)
3. Future, Internal SMT economy with a possibility of a fee-less decentralized exchange dapp (just an idea)
4. ROI through curation
5. It creates an earning opportunity for individuals/creators
6. At its core has something of tangible value. Content

And because of these very reasons folks, the current STEEM market cap makes absolutely no sense whatsoever.

Now of course you could name some problems. "Well, trending page and passive whales, etc"..
True. But the fact of the matter is that STEEM even at its worse is far superior to most crpyto that is out there currently.

Ill go into the points a bit more but just ask yourself one thing... What blockchain out there has a built in, functioning economy at this scale?
A skeptic might ask:

"Ok, sure, you have this blockchain thing. I get what it means that its decentralized. Cool. But show me what it can do better then current things i have access to."

So what will you do? Show him Bitcoin and how its just a much shittier decentralized version of Paypal or show him STEEM with some actual improvements across numerous fields?
Anyways, you get my point.

So lets get to the points i mentioned here.

1. and 2. It has a working product..

This is a extremely important point in my opinion because for all the talk of innovation rarely do we see a project that is actually in use for something. BTC (and clones) apologists might say:

"Well if only people would let us pay them in BTC, if only stores accepted payment this way, well it will be faster to transact in the future, it will be cheaper to transact in the future. Youll see, we will make it better".

Nothing but ifs and maybes.

MOFOS, LOOKY HERE, HERES SOMETHING THATS ACTUALLY IN USE RIGHT NOW AND WORKS GREAT!

Now to be fair, one day BTC might have a max tx/s of a 1 000 000 instead of 10tx/s it has now. And maybe the fees will get ever so low, and maybe the volatility will go away. MAYBE.
But maybe, as well, @pechichemena grows some wings and learns to fly. :D

Another thing important to mention is that the STEEM blockchain wasnt created with the sole purpose of increasing the efficiency of money transfer, but it does it well, so what is stopping me from using that aspect of it?

How far-fetched is it that someone creates a front for his shop, tied into some kind of fiat gate, at first, with a decentralized Steem dapp that confirms token/product trades? Is that really out of the realm of possibility?

Anyways....

3. Internal SMT economy with a possibility of a fee-less decentralized exchange dapp (just an idea) ..

Now its pretty clear what possibilities SMTs open once they launch. The monetization aspect is clear. But...
If SMTs are a success they will add to the already existing internal STEEM economy that will offer amazing opportunity for investors, creators as we as well as "gamblers". As i said, its an idea only, maybe a foolish one, but this could eventually lead to someone creating a decentralized exchange dapp on the STEEM blockchain allowing easy fee-less trades... That could bring tremendous value to everyone, even though exchanges base their profit on fees and there would potentially be none here. Still, Steemians made a lot of "free shit" already so why not this as well?

4. ROI through curation.

Now we all know about curation. You power up your STEEM and you get some return over time by curating content. Pretty simple. The returns arent much but if you look at the ROI during a yearly period then its clear that powering up offers a much higher return then anything you would get by either putting it in a bank, more then from stocks on average (10% yearly from 1926) or from bonds (between 5%-6%).
This is one of the things STEEM offers that rarely any other blockchain does.

5. It creates an earning opportunity for individuals/creators

Another thing we are most aware of is that you have a legit earning opportunity here. Ofc not everyone will earn something, as i said in my previous posts, most wont, but the opportunity is here even if you arent destined for greatness. (MB, Smartsteem) Since STEEM has a well thought out economy the curator gain depends on the content created. Without content there is no wealth distribution nor gain for anyone..
Work has to be done and effort put in for there to be any earning opportunity for both sides.

6. Something of tangible value.

For all we know "value" is just something that constitutes importance, worth, usefulness.
Does that exist here? Yes. If content didnt have value then no one would pay for HBO or would advertisers pay youtubers money.
And thats the aspect many other crypto projects lack. A creation of something of tangible value and everyone earning a return from the shared reward pool... Without a product there are no earnings outside the "greater fool theory" and gambling on someone else buying your asset for you for a greater price you payed for it..

Conclusion:

Steem itself is a platform that is valuable simply by existing, but beyond that (and i skipped the part about creating dapps on the STEEM blockchain) it creates opportunity for a wide spectrum of people. From the large investors to the small creators. It offers a return on your investment, it can potentially create job opportunities, it connects people and incentives them to participate in productive ways... STEEM has created a miniature self-sustaining ecosystem that can cover far more then it was originally intended for.

So truly..

CURRENT STEEM MARKET CAP MAKES ABSOLUTELY NO SENSE

And thats it.. Kudos if you read all this. ;)
Ill see you around.