Steem's scarcity in high prices, solving the problem of inflation that's affecting our traditional paper money.

in #steemit6 years ago (edited)

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Steemit is generally a platform where people blog for money issued in a cryptocurrency called steem.
So whatever we do on steemit, interacting, investing, the end goal is getting some of them.
Of course each of us has different goals and plans for the platform.
Anyone can make as much money as possible here on steemit, which i guess brings us to the purpose of this article.

For the value of steem to keep it's heights, we should be dealing with the demand and supply

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Just like the scarcity of gold or bitcoin gives them alot of value
Not everyone can own alot of bitcoins or gold.
So they have stored people's money amidst fluctuations.
When we look at steemit, i tried to understand how certain things are a certain way here on the platform.
Have you noticed something when the prices go up
I remember at the beginning of this year, when we had prices go past $10.
Many people started posting and voting alot to maximize on the gains. Had a friend who used to post three times a day and comment the entire day after.
And then he started getting bandwidth problems.
If you don't know about your bandwidth, go to steemd.com/@yourusername
So thought maybe it was mechanism built on top to prevent easy casting of steem steem on the prices especially when alot of people are using the platform.
Have noticed how your vote value has to do with how many people are casting votes on the platform at the sametime. Basically with our rewardpool we all have to share from this rewardpool, some one gets 1% from the rewardpool then others are going to share from the 99%.
Why i thought the SBD, we had the aim it should be pegged at the 1usd. To make steem more valuable to get. So basically when i receive a big vote on my post, whem SBD is about 1usd and steem is at 3usd, am likely to get almost a third of steem of the sbd.
That's why in sometimes a post of $200 can make only 20sp and sometimes it makes 70sp. Due to the changes in these prices.
So with them pulling off the sbd 1usd move it would make steem more valuable where by preventing unnecessary inflation.
Speaking of inflation
zimbabwe-cash-inflation.jpg
Inflation makes money less valuable and we all know it. When I was still a little younger i used to think to myself why doesn't the government just print out money to help the needy?
Have you ever had such a thought?
I used to.
Until i realized that when it's easy to access money it becomes useless to have lots of money.
Here is an example.
When am selling bread at $5, someone may want to buy it at $10, another one at $20 another will come to buy it at $100..so i might sell it at $100 right?
So i have sold it a $5 bread at $100 so i have made profit right? No
So imagine i want to pay my workers and i have to go and buy some clothes. The $100 will be less because everyone has money. It's likely that my workers will never do any work because why would they work when they have the money already. Who would make for us clothes to wear?
In that case money has lost value.
Money only is valuable if people work to get it
Sell and buy goods, innovations, creating stuff.
It can go alittle more technical than that but i think you get the idea.
Zimbabwe faced one of highest rates of inflation until people started resorting to bitcoin because atleast it's a limited source by design.

So cryptocurrencies are going to solve the problem of inflation globally
We shall not have some countries weep because their money can't import anything from outside.

Thanks for reading.
As always
@tesaganewton
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Thanks @tesaganewton when prices move high activity is high too here and votes come in regularly but when it goes low the people disappear I think activity has to move on

it goes low the people disappear I think activity has to move on

true, consistency through all the dips and highs is a good thing.

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