RE: Ripping off my pants and running through the streets: Steemit halts programmatic selling for one month!
The infrastructure needed to run the full nodes, the steemit api, steemit.com, hosting images, the developers salary, etc, etc are costs that need to be payed every month...that is something that can't be avoided and waiting for a bull run is not an option. They could have done a better job managing their finances and this has been discussed alot in the past. At this point we are beyond that discussion.
One good thing that came out of the bear market was that steemit had to buckle down with their finances and they made two very important developments in MIRA and Hivemind that are huge in terms of cost reduction. The inclusion of add revenue to cover the operational costs (instead of programatic selling) will be in my opinion a big boost to the price in the long run as it removes selling pressure on the external markets.
Bootstrapping with minimal capital reserves is probably one of the hardest things that all entrepreneurs in dire straights have to deal with... but plucking the fruit from the tree to early will only kill it. This is a decision based around inexperience. Steem is a radical idea... and reverting back to an advertisement business model is NOT the way to build our confidence to the other investors on the platform no matter how you look at it.
Stepping back to focus on getting the fundamentals of the Blockchain right is a first step... balanced with a financial plan outside of the Blockchain to balance budgets makes far more sense when their is this much crypto blood in the streets.
Things will turn around... but it’s going to take wise decisions. a supreme amount of patience, and a lot of hard work.
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I have to disagree, using advertisement as a means to procure funds is one way of connecting steem to the real economy. As an investor I have to ask myself where is the monetary value coming from. The add model has proven to work in the world of social media. If Steemit Inc can avoid offloading their stake on the market to fund it's operations that reduces the selling pressure and increases the value of my holdings.
A business model that does not connect to the real economy and only relies on speculation is not a recipie for growth and is destined to fail.
Then we all might as well throw our hands in the air like we just don’t care and go back to Facebook and YouTube... The whole premise with the Steem business model is to demonstrate another economic solution. As investors we have invested in Steem because it’s a way to do social media WITHOUT using an annoying advertisement based business model. We don’t need to tie into the existing online economic model because we are creating an infrastructure outside of the advertisement/marketing model.
As an investor... that’s what I sold my stocks to invest in. If we are going to then turn around and plug back into the old way of doing it because it’s easy and that’s how everyone else does it... well we have sold out on our vision for the fundamentals that this project was initially designed around. If that’s the case... why don’t I just wait for the stock market to crash and put my investment money back into social media platforms like Facebook, etc.
Look... Steem is a way to put content back into the hands of the creators, value and broadcast attention for that content based on stake and influence, and avoid an annoying advertisement based economy. That’s the fundamentals.
Thinking that adds are going to lighten off the need to sell Steem to stay afloat is only going to undermine the principals people invested in the platform to begin with. It’s circular reasoning and it’s not going to support a new and innovative way to do social media... it’s going to undermine it.
We innovate or we run the risk of being washed out in the wash because we are like everything else out there!
If that’s SteemIt’s intent... then maybe they should sell off their stockpiles and put the power into stronger hands and brighter brains.
The real economy is the only one that has value (the one where the goods and services are produced). Facebook uses it's platform to gather people and it gives a place where the companies that produce those goods and services can showcase them with advertisement.
By itself I don't see anything wrong with that. The problem with the Facebook's of the world is that it takes all the value generated by having a large group of people in one place and keeps all of it to itself.
Youtube shares part of their revenue with the content creators but problem with them is that it's entirely up to their discretion and they can shut you out whenever they want.
If we do not connect the apps built on top of the steem blockchain to the real economy then we are only relying on speculation to give value to the token. Might as well go to a casino or play the lottery.
Now, advertisement is one way of connecting steem to the outside world. Another way could be to build an app that is used in the real world that requires recources credits. But the app needs to have a real use case in the outside world.
Steemit Inc is a private company and if they choose to use advertisement to fund their operations I am ok with that. If another entity goes a different route I have no problem with that either. Steem is an open protocol and no one needs to ask permission to build anything on top of it.
Steem is not Steemit so it's not the end of the world if they have adds on their site. Besides you can always block them, use tor, brave browser and/or a vpn if you need to have a little bit more privacy.