Instead of STEEM DOLLARS how about STEEM GOLD?
What happens to STEEM DOLLARS if the US Dollar tanks? The USD is a fiat currency after all, which means that it is susceptible to being trashed if the politicians of the day (whoever they might be) decide to devalue it for whatever reason. The USD may currently be the Reserve Currency of the world, but the days of King Dollar are numbered and the writing is on the wall for anyone who bothers to read.
Posters impression of what the US Dollar should actually look like
The US government debt is currently over $20 Trillion and if you believe that’s ever going to get paid off then I have some sub-prime mortgage bonds you might be interested in buying!
This is not sustainable and it's only getting worse
As it stands we are only one crisis away from another round of Quantitative Easing or Helicopter Money….also known as Money Printing.
Government Solution : Print Money -> Distribute -> Profit!?
You only have to look at Venezuela today to realise this kind of thing never ends well and it’s pretty safe to say that if the US Dollar tanks then the STEEM DOLLAR goes down with it. While that isn’t necessarily a bad thing for the STEEM rewards pool, it is probably not a great thing for the platform as a whole. All those users holding STEEM DOLLARS because it is safe and stable against market volatility…..well they won’t be too happy to see their savings on the platform evaporate.
Regular readers of my blog might be confused by the fact my last post was singing the praises of the STEEM DOLLAR as an ideal crypto for mainstream adoption, and I do stand by everything I said there. This commentary is more about the use of STEEM DOLLARS as a stable store of crypto wealth which is one of the important features it can have in a volatile crypto market.
With all the recent talk about introducing Smart Media Tokens to STEEM and the possibility of having different micro-economies happening on the platform I wanted to ask the question :–
All that would be required is an extra price feed for the witnesses to publish and STEEM GOLD could function exactly the same way that the STEEM DOLLAR functions. STEEM GOLD would be a new debt instrument, denominated perhaps in milli-ounces and each unit of STEEM GOLD could be redeemable for one milli-ounce worth of STEEM from the rewards pool just like STEEM DOLLARS are redeemed. It would just be a new, more reliable asset to peg to that isn't fiat and isn't controlled by any government.
In the future this concept could be taken even further, with other fiat currencies or commodities being pegged to STEEM assets to give users a wide choice of options for both safe haven and stable medium of exchange. For instance I am based in Australia so I’d love to see a STEEM AUSTRALIAN DOLLAR that I could actually use as currency locally. A STEEM EURO would also make things easier for European adoption. Even a STEEM OIL or a STEEM SDR (Special Drawing Right) for when that thing might become the new Reserve Currency of the world if the IMF gets its way….Note to self - I might need to find another frankenstein pic!
The possibilities are endless and the technology implementation is really the easy part. All the building blocks are there for these STEEM Assets to be implemented quickly and easily as the demand arises. All we need is the desire and determination to implement them.
Let’s be proactive and not wait until the next Global Financial Crisis hits
Images and Credits
http://earthsfinalcountdown.com
https://au.pinterest.com
http://valtenbergs.com/
http://www.zerohedge.com
http://www.alphamaleblueprint.com
http://www.livebitcoinnews.com
https://www.cartoonmovement.com
http://www.cartoonistgroup.com
http://www.freedomworks.org
That post was GOLD mate! I am all for this a gold peg.
I wonder how Goldmoney is doing these days - maybe they need SMT to increase take-up - maybe a joint venture between Steem and Goldmoney could lead to an actual physically backed gold crypto. NICE!
Thanks @sirknight. I am not really familiar with Goldmoney but I like to keep an open mind.
This is crypto-world, anything is possible!
Nice thought, but SteemGold would be no better than the GLD ETF.
Unless you can hold it in your hand, it is a digital illusion of the real thing.
Spoken like a true die-hard stacker. If you don't hold it, you don't own it. I do agree.
But it would be better than a GLD ETF because it won't have the same counter-party risk. There is always the chance the company behind an ETF can go under. The STEEM network is totally decentralised with witnesses all over the place, so where is the counter-party risk?
Sounds great, but I think we're going to need to wait until SMT's are active, before we can create our own non-inflationary tokens backed by gold/silver/sand
Soon ™Thanks and, I agree.
SMTs are going to be big and will get people thinking a bit more about what tokens or assets we can use on the platform. This might be a logical next step beyond that. From my understanding the SMT functionality will be more about alternatives for using STEEM and STEEM POWER on the platform with voting etc, but this functionality will require witnesses to provide a new price feed(s) to the outside world and be coded into the platform so that it can be "backed" by the rewards pool like SBD is.
At the risk of copying BitShares functionality (eg bitGold) I think STEEM can do it better since on BTS the assets are only backed by trader collateral instead of an entire community of value-add users via the rewards pool. The lack of trader collateral has caused a few "Black Swan" type events on the BTS platform that STEEM would be able to handle.
Is this why bts is in the crapper? Damn! I wish i had steered clear...
Possibly. BitShares is a brilliant platform but the lack of liquidity and the black swan events are a real put off for me. I would buy bitGold if I could get a fair price for it and there wasn't a risk I'd be left holding a bunch of cheap BTS instead when the market tanks.
Fear, Uncertainty & Doubt -- is coming in the air tonight, oh lawd!
😁
I vote Sand!!!
Great Idea, I would feel more save if the steemdollar would be actually backed by gold. Maybe sometime in the future will bring out there own coin backed by gold on the SMT plattform.
You're probably right, someone will attempt to create a SMT backed by gold but it would have counter-party risk like an ETF does and so it would come down to the trustworthiness of the issuer.
Still, I'd like to see that happen if we can't get STEEM GOLD implemented as I'm suggesting here.
Yeah, I am liking this idea. Steem Gold is a solid concept.
Steem clone Golos has Gold tokens (GBG) instead of Dollars (SBD).
One GBG is worth roughly as much a milligram of gold.
Wow, I didn't know that! That is awesome, it means it's probably not that far fetched at all.
I haven't used Golos because I thought it was just a Russian version and I don't speak Russian. I might have to have a good look at its technical specs to see if there are any other differences.
It would not be hard to add Gold token to Steem blockchain with same properties in addition to Steem Dolars.
That would be awesome..
Brilliant my Friend...
Cheers, I appreciate your kind words.
@buggedout - sounds like a great idea if Steem dollars can be backed by gold, it would actually drive more investment into the Steem platform, it would become a safe haven asset as well as the most useable crypto on the market.
At some point in time there is going to be a major Stockmarket and US Dollar will collapse and there will be few places to hide which will be unaffected by price collapses. It would be great if Steem gold could be implemented to provide this protection.
You hit the nail on the head @cryptoandzen
I am trying to find exactly those "few places to hide which will be unaffected by price collapses" but at the same time have a diversified portfolio. It's a tough assignment but I have a few options and STEEM GOLD would be a nice one to add to the list.
Scary Iceberg chart! Yikes!
Glad i'm packing metal 😜
Great post B!
A picture tells a thousand words.
I don't know how anyone could look at that chart and NOT be concerned.....
For realz! The sheeple look but they don't see
Indeed it's all in plain sight. People don't WANT to see it because then it means they might have to do something about it.