Blaming DEC for STEEM's price going down isn't an overstatement
What is happening
Most of the crypto profit going to steemmonsters is held or traded off for fiat at an increasingly lower price
This escalates as DEC continuously holds value as a consistent way to earn more STEEM because it's price drops
Which means more steemmonsters cards / DEC is bought and more of steemmonsters profit is sold off
This goes on until steem dies due to not being worth anything while steemmonsters milks it to the very last drop
Please correct me if I'm wrong
It doesn't matter if it is intentional or not. What matters is steem could be dying because of this.
When was the last time you sold your cards and the STEEM you got was worth less? Didn't you regret it?
Have you ever wondered why the market does not offer a way to pay for cards with SBD, which is secretly USD-backed behind the curtains? (Or did you really think SBD price not going down is a coincidence?)
Write your opinions / facts / corrections in the comments.
well i haven't had a good chance to use this in a while...Very interesting.
Resteemed because i want to follow up with what people are saying.
!dramatoken
Thank you, I really want to hear everyone's opinions on this, both positive and negative.
Here's your
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DRAMAgo to steem-engine.com.To listen to the audio version of this article click on the play image.
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Interesting theory. But what about the impact of new Steem Monsters players buying Steem to purchase cards & DEC. Are Steem Monsters sales of Steem really enough to be depressing the price? Seems like a general altcoin thing to me.
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The lack of transparency from an account like @sm-usd and how annoying it is to dig up transfers and final usage of tokens that go through steem-engine for a non-programmer like me are the things that make me worry (not accuse).
SBD isn't kept stable because it is secretly backed by the USD. It is a stablecoin by design whose production depends on its value (it's more complicated than that but that is what is essentially happening). If it's value starts to drop too much, less is produced and authors who get a 50/50 split start to get steem instead of SBD. The idea is to moderate production such that the value of 1 SBD is always close to $1 worth of steem. So no, SBD not going down is not a coincidence, it is by design but that design has nothing to do with USD backing.
I cannot say that argument holds ground. When steem inc was desperate for new investors/ideas when their costs were getting out of hand (right before MIRA), sbd went down all the way to $0.30.
It's not an argument, I'm just telling you how it works (at least at a high level). It's in the design in the whitepaper for Steem. It's the whole point of a stable coin and why SBD exists. SBD was always intended to be worth approximately $1 but not by backing it, secretly or otherwise, with anything other than Steem.
Here's a very good and much more detailed explanation of SBD and how it works: https://steemit.com/sbd/@timcliff/sbd-explained
Yes, SBD has dropped well below $1 and it also went all the way up to nearly $14 at one time. The algorithm doesn't guarantee that the price stays at $1, it just puts pressure on it to be at that level. There have been changes in hard forks that have tweaked how SBD works to further increase stability. There were changes in at least HF14 and HF20 and they are described in the link above. It isn't magic (though it is complicated) and the code is open source.
At any rate, being secretly backed by the US dollar wouldn't keep the value at a dollar anyway. People would have to know about it for that to work. How does one secretly back something and have it affect the market price?
Make the exchange available only for the biggest holders.
This exploit has since been fixed. A whale was doing it.
When steem inc was desperate, right before mira.
That can only happen if backed
Whether you're right or wrong with your assessment I think it would be worth while to quantify a statement like "Most of the crypto profit going to steemmonsters is held or traded off for fiat at an increasingly lower price" with some factual statistics, from a credible source. Or If it's just a wild guess than say so :p
From my reply above:
Ideally, I should not be able to make wild guesses like that.
There's 1 million steem in Steem-Engine.. that's a whopping 0.02% of the total circulating supply. Steemmonsters market cap and steem-engine market cap combined are a tiny fraction of circulating supply. A grain of sand on a beach.
These guys are single handedly trying to save STEEM. Imagine no SM and no Communities, STEEM would have FUCK ALL going for it. To blame this game for the drop in price is nonsensical. I don't know why people attack one of the only things that actually adds value to the steem network.
Out of everyone who replied in this post, you're the only one who took it as an "attack".
Interesting theory, i think there is certainly a link between people cashing out of SM and steem drop as theonly way to cash out is buy sellingdec/cards for steem (off the exchanges) then dumping the steem and the price drops. I think we are in a downward spiral though, people are selling as the price is dropling so fast, i dont personally want to hold steem anymore, it seems if you hold for more than a day or two you end up losing a big % of your money. It could be the end of days for steem. Its going down and its not slowing down. I hope not since im so invested in it but everyday it looks more likely.
I don't think it will kill steemit but I think it could harm it over time.
You have an intriguing upvote pattern there. This gives me ideas.
STEEM will die because I use TRX to play SteemMonsters, convert my DEC to TRX, buy packs and cards with TRX.. what is this STEEM thing you speak of?
:p
I really should explore TRX further... I'll look at it today. Anything specific you'd recommend?
I'll let Billy Madison answer this:
I counter with https://steemit.com/palnet/@felipejoys/a-crypto-app-more-profitable-when-it-s-token-loses-value and
except make it "one of the only two."
why is sbi voting for my comments wtf
I also reiterate on:
by me
by me, combined with:
by mannaman
Last but not least, I ask you once again:
If you don't keep it logical, civil and productive, you'll be wasting both my time and your own. I don't think you disagree with this.
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