In our owned words

in economy •  5 days ago  (edited)

Two weeks ago I wrote a post/rant about the upcoming hardfork and got a few unfollows for it. That is okay, I will recover. Now we are 14 days out...

I am actually not in much of a rantish mood so I don't think this will satisfy those looking for some drama, but who knows, perhaps someone will read this and get something out of it - perhaps I will since it is a freewrite like most of my posts and therefore, I have no idea where it will lead either.

What I do know is that today I was talking with one of my onboards from over a year and a half ago, a person who never posted and while interested at first, couldn't find the space in his life to participate - and today he was asking more about it, asking about investments into crypto, talking about watching The great hack and questioning the way things currently are in this world we have created.

He and I have been friends for about 13 years now and when we talk we can speak openly and honestly without fear of ridicule -it is refreshing. He also doesn't mind putting his two cents in, questioning my thinking and trying to understand, even if he doesn't get it all.

I find it hard to speak about Steem to people in the non-Steem world because I have spent so much time on Steem, thinking Steem, living Steem that I am not sure where to focus the conversation as there are so many things to consider, so many things happening. This is a problem that the applications should be aiming to sort out and hopefully with the shift from Steem being contributor-centric to owner/user centric, they can focus on building the user experience, without having to worry about the issues of investor considerations.

It was always going to be a rough start to lump everyone into the same open space and have them build their experience themselves as, people have different lives they live, and desires to be filled. While it may be great to build Steem to be "fair", it is an impossibility because of the base starting point - none of us are starting from scratch.

This isn't just a comment on our economic position, it is also our background, culture, skillset, access to resources, education, intelligence, personality, willingness, energy levels - you know - everything that affects our experience and influences the decisions we make. However, each of us can affect our future outcomes through our behaviors at this moment, the next moment and the one after that.

This upcoming potential hardfork will be the 21st since the beginning of the Steem blockchain and unless cataclysmal in its effect, will not be the last the Steem blockchain or its users will face. What an investor in Steem needs to get comfortable with is that the type of investment and the return it provides is a variable and always will be - something the earners need to face also. It isn't easy to face uncertainty and once someone holds something, they do not want to open it up to risk. As my friend said today;

People like something tangible in their hand

This is actually a hurdle for cryptocurrencies because so many of the people compare it to cash and, cash they can hold. This sets up the illusion that they own that money, even though they have no control over the money itself, only what they purchase with it. The funny thing is that while something tangible like cash feels tangible, real crypto by design is actually more real in terms of ownership as whoever holds the keys, owns it.

The general public do not see digital money as being anything more than zeros and ones, even though that is all fiat actually is these days as most of what is out there, does not and will not ever exist physically. The other thing that they don't understand is that someone can own digital real estate in the same way that one can own land or gold, with the difference being it is not subject to the limitations of physical things.

I have posited that if all the Jewish people in Germany had their assets in digital forms that traveled like crypto does, most would have left Europe before the real persecution began. I would also say that if we all had ownership of our wealth and it was highly mobile, governments would have to work much harder to encourage us to spend our money locally, instead of moving to greener pastures. Mobility is a resource, and immobility is a detriment.

Are you mobile?

Would you continue living where you are living if you could pick up every bit of value you own as well as the income you regularly get and move to a nicer area? How much of what you own is transportable to that degree? Probably not much, unless you are a digital nomad with the ability to earn on the go.

What I think has to eventually happen is that we as participants in this world will be forced to reimagine value and economy and shift away from the models of the past and create something altogether new. With the growing utilization of AI and automation, the shrinking number of jobs, the decrease in skill need and diversity and more people unable to participate in earnings and the increasing shift of wealth to the point, many of the systems are going to systematically fail.

Remember, failure is inherent in the design of the economy, otherwise we wouldn't keep crashing every decade or so. And due to the way business and bank have commandeered to own most of the assets, these failures are going to continue. When was the last time banks bailed out consumers for their mismanagement of personal funds? Perhaps taxpayers should have charged credit card interest rates on the bank bailouts of 2008.

Own to use

I think that with the upcoming global economic failure, more people are going to be exploring ways to secure their wealth and while many are going to move into Bitcoin, BTC itself doesn't have the mobility of many of the cryptos and is not the kind of blockchain to handle something like fast and free transactions at high volume. This will be up to others.

I also think that Steem investors are going to have to rein in their earning potentials on RCs as while there is a very high possibility for them, the first order of business will not be to earn on the delegation of Resource Credits, it will be to use them to empower new users to be able to post and interact as much as they want, to support applications to bring on the masses to earn distributed tokens and encourage the smoothest transition from a world of renter, to owner.

Light accounts would go a long way to easing this process as will the coming delegation pools, but I believe the investors are going to have to be patient. However, once it all starts to come together, once the mindset of the individual translates into a paradigm shift for the masses toward ownership models, real value starts getting generated.

At the moment the crypto market is tiny

The market cap of all crypto assets is around 290 billion dollars and while a lot more than you or I are likely to see in our lifetime, is a drop in the ocean of zeros and ones.

Yes, a staggering 5.9 trillion dollars, but still only 1/4 of the US debt. Remember that in order to have debt, someone must have spent something somewhere. Also note that BlackRock took in 264 billion of new investment in 10 months and increased their funds by less than 5%. Pretty amazing.

Just think what happens if they choose to diversify a percent or two into crypto

And I believe they will increasingly do so because more and more their customers are going to demand it and, they are going to want a piece of the investment opportunity that has massive upside potentials. They don't need to believe in it, they just have to be able to sell it and, investment companies are very good at selling opportunities - real or imagined - to create a self-fulfilling prophecy. Of course, they take a bite out of the profit apple too as well as draw in profits from the investments that people purchase and the interest people pay on their loans. They have their own economic cycle going on and, it makes continually increasing profits, but they come from someone somewhere.

Users pay, owners earn.

Will people wake up to this fact and recognize that in order to balance the economic books, users have to also be owners of their experience? I think some are and I think that Steem is well positioned to attract the early adopters of the new economy yet, even many on Steem struggle with the concepts of ownership over merely earning. But, it seems more and more are slowly building their knowledge banks.

Investment is hard when one doesn't even have the vocabulary to speak about it and finance isn't a language well taught to the masses, but it is learnable through participation in the economic conversation.

Own your words.

Has a nice ring to it, doesn't it?

Taraz
[ a Steem original ]

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  ·  5 days ago (edited)

People like something tangible in their hand

This seems to stop the older generations and people who like the feel of money, but as you say

real crypto by design is actually more real in terms of ownership as whoever holds the keys, owns it.

How to get that message across without the person opposite falling asleep or being mind blown is tough.

... Steem investors are going to have to rein in their earning potentials on RCs as while there is a very high possibility for them, the first order of business will not be to earn on the delegation of Resource Credits, it will be to use them to empower new users to be able to post and interact..

Ideally yes, depending on how full/empty the pools are looking. BT's buildawhale delegation could be adjusted when RC delegations come to leave the SP there, but decide 30,000 account claims is probably enough for a bid-bot and chuck those in a pool earning what he does now for them, nout.

  ·  5 days ago (edited)

Yep, it is tough to explain without sounding like a crazy person.

Do you think there will be a different price for Steem delegations with or without RCs? I think at first it will not matter but with RCs having value, a person could charge for both.

  ·  5 days ago (edited)

Today @laputis and I visited my parents-in-law and there we met our nephew. We talked about many things and at one point I casually mentioned @actifit and how we are getting paid to move. And just before saying good bye I asked him if he wants me to open an account on Steem for him. He said he can do this himself probably meaning he is not that much interested. But then I said if he would have to wait for 2 weeks for account approval whereas if I created Steem account for him, I could do this instantly. Then his eyes opened wide... Maybe this elite instant access could be our selling point?

Maybe this elite instant access could be our selling point?

This is something that I think also. Not just the wait times but the fact that it is premium to have a Steem account. I think this is going to be a selling point for the differentiation between a light and a named Steem account. For a dollar or two, you can own your account with th name of your choice and start earning. Everyone loves exclusivity and personalization.

  ·  5 days ago (edited)

BTC itself doesn't have the mobility of many of the cryptos and is not the kind of blockchain to handle something like fast and free transactions at high volume

I noticed this, and remembered why I didn't like BTC that much: the withdrawal fee from Binance would've been about $5 dollars for about $70 dollars worth of Bitcoin. I don't understand why they have it so big, because doing the same on Coinbase (withdrawing ~$100), the fee was only a dollar. They really like Bitcoin there on Binance or something...? Fine, I'll just set up buying orders for STEEM then that has a withdraw fee of, was it 0.01 STEEM, or something along those lines.

  ·  5 days ago (edited)

Yep, I don't understand why there are such big differences in fees for it.

Its no mistake that we're encouraged from childhood to spend most of our working lives investing in a house; the most expensive, least mobile asset a regular person could ever own.
They've started rolling out solar catamarans. Still over $2 million each, but like anything, the price comes down and the quality improves. It won't be long before pre-loved vessels like this cost as much as a house.

Not only expensive and immobile, also generates a great deal of interest payments.

I get seasick... But perhaps I can learn if on the water long enough.

Greetings friend @tarazkp.

I find it hard to speak about Steem to people in the non-Steem world because I have spent so much time on Steem, thinking Steem, living Steem that I am not sure where to focus the conversation as there are so many things to consider , so many things happening.

Wow friend, I see that you are passionate about steemit as much or more than me. I have also spent many hours of my life here.
From the beginning I focused on people and on achieving greater interaction and commitment.

Inevitably if we want to grow here we must also address all these technical aspects that are developed within the steem blockchain.

... the first order of business will not be to earn on the delegation of Resource Credits, it will be to use them to empower new users to be able to post and interact as much as they want, to support applications to bring on the masses to earn distributed tokens and encourage the smoothest transition from a world of renter, to owner.

This is the right vision we should all have. We must be fully aware that we are in a community and not think individually.

Thank you for sharing these valuable thoughts.

All best, Piotr.

  ·  5 days ago (edited)

Part of the issue with having everyone lumped in together is that not everyone understands the needs for development or the order in which things come. Many want to earn of course, but that is secondary to making sure the platform and economics operate well enough. This all takes time.

In mainstream one of the first things I would look at is the track record of the management team and past successes.

We've had 3.5 years to see our stakeholders in action.

Best predictor of future behavior is past behavior.

I love Steem. I love the blockchain.

I no longer understand what our goals are and how they might be achieved.

Are we a ponzi where stakeholder call the inflation ROI?
Are we trying to onboard the masses?
Are we social media?
Are we content discovery?
Is it a utility coin for the Tribes, SMTs and Communities.

I have no idea and based on communication neither does anyone else.

I know crypto is high risk, but that just adds to the risk.

I have no idea what these guys will put in the next hardfork.

  ·  4 days ago (edited)

Maybe we are going about it the wrong way if users and instead should:

  • find what we are interested in
  • find people we like being around
  • and do what we are interested in with them

As an investor, perhaps it is the same thing and we should stop seeing this place as a business with a management team and instead a very large canvasanyone can paint upon.

  ·  5 days ago (edited)

Definitely tough to talk about Steem to outsiders and I think if I can hardly convince my wife to post or even browse, I may be missing something. However, I think it will take time for the ecosystem to broaden so that everyone can find a community or Tribe to relate to and the interface needing to be more seamless. In the meantime, we need to build it together as early adopters.

  ·  4 days ago (edited)

I think wives are harder to convince than others :D

Actually, I think this is true because for the most part people do not credit those they know as much as strangers, even though the accreditation can be the same. I have been a trainer for 16 years, my wife still doesn't consider my advice as one of a professional, which is strange because I have skin in the game when it comes to her well-being.

  ·  5 days ago (edited)

I am actually not in much of a rantish mood so I don't think this will satisfy those looking for some drama, but who knows,

Hmnnnnnnnnn.....Sort of a tempered rant, as it turned out? That's okay though...it is the norm on Social Media Platforms :>) I do it often enough myself...

It is good to have a rant from time to time.

  ·  5 days ago (edited)

I guess you're right...but...just guessing...I mean, it's not like I researched your claim or anything like that!?!?! Maybe I should; learning crap is fun sometimes.