STEEM DOLLAR CHART FOR ALL TIME
Not going to make a long post, but going to keep it short and up-to the point. I have put a lot of work into this , so I would appreciate if this post reaches to large number of steemitians.
Economics is a big topic and most of you must not be knowing the typical economic terms, So that is the reason I am keeping it simple not bringing in the technicalities.
One simple question why there is a difference in the value of steem and bitcoin?
The answer to this simple, the amount of work that goes behind creating new steem dollar or bitcoin.
Assume someone is offering me 10 biscuits for one bitcoin suppose (i would get ton of biscuits for one bitcoin though lol!) and he is offering me 5 biscuit for one steem dollar. What the reason that the person is offering me different amount of biscuits for each one steem dollar and one bitcoin. The reason is amount for work done to create one steem is different then the amount of work done to create on bitcoin.
Most of us know bitcoins are created when a block of transaction is added to the preexisting blockchain. The miners have to do the hashing to get the block added to the blockchain alot of work is done to get the blockchain added (electricity is used )
So mathematical work is done to create more bitcoin. And no single person has the right to create bitcoin .
BITCOIN CHART FOR ALL TIME
In the case of Steem new steem dollars are created when new digital content is created, the new steem dollars created are reward for the work that is been put in creating the content by the creator. The other steemtians decide the content is legit or not by upvoting it. ( upvoting it if they think the content is good and good amount of work is done by the content creator).
But there is one thing different in case of steemit, the power of the vote is different of different accounts. The account which has more steem power has vote that has more value. Such accounts are called whales.
We as Steemitians expect the whales to use their power wisely. but that is not the case. what if your government says that you can print the currency . How many of you will be using this power wisely? Very few most of them will use this to print currency for themselves . (There are whales how are not in this kind of activities but even one fish can pollute whole tank.)
Same is the case on steemit , the whales end up upvoting their own content which is not worth , the upvote they make. IN such case money is created even when the amount of work is not done worth the money .
THIS THE REASON THE VALUE OF STEEM DOLLAR IS DECREASING !!!!!!!