https://steemitimages.com/DQmdkN1PLxjjkZNxQQf1i847rWX5hC2pMjjT1BbyueB46ca/image.png
This question of mine has been on my mind for a while actually, but only until recently that it seems to be a more legitimate question. But my understanding of the system might not be entire correct, still it is a good chance for me to know if I am wrong with some knowledge about Steem. Naturally, any answers and corrections are more than welcome!! Please follow my thinking to understand it …
Steem Economy could be A LOT BIGGER than its current state …
You must have learned that Steem price has been pretty strong lately (actually very strong, you might refer to this), and it is a good time now for us to imagine a little bit. Many users join Steemit, perceiving Steem as a token of blogging and curating. That’s true, but there is more to the potential of Steem, as many have discussed during the BTCC poll contest - based on the Graphene blockchain technology, Steem has the advantages of free transfer cost, fast transaction time and the diversity of the backing community… etc etc…
Okay. With the entire cryptocurrency market cap still less than a tiny fraction of the traditional economy. I would say that once the world passes the turning point, all the coins will have a huge long term super growth. Let’s say that by future I mean 5, or even make it 10 years, Wouldn’t it be reasonable to assume that the whole Steem economy in the future could be at least reach the scale of today‘s big brother bitcoin? Seems very reasonable assumption to me… (some may say conservative!) …
Anyway, follow this assumption and based on today’s numbers,
Steem should be 39,725 (bitcoin market cap)/ 248.7(steem market cap) = roughly160 times more valuable in the future. Considering the inflation, let’s just roughly say that Steem price should be 150 times higher than now. Let’s be conservative, and make it just 100x current price.
So, the future Steem price could reach $100.
https://steemitimages.com/DQmXNrwmvdqkzUtufsJPAwaxRzkcKzSiocdTqsb2mRXw3vp/image.png
Doesn’t matter how soon you wish to assume this future arrives. 5, 10, 20 years… Keep reading…
Bitcoins have Satoshi, Steems don’t
In the Steem currency system, we only have Steem, the liquid and the main token, Steem Power, the untouchable Steem as an influence token and SBD, the Steem-backed dollar that is designed to peg the US dollar… Seems more than enough for an ecosystem of its own (some even argued that we should get rid of SBD).
However, if you have some experience with Bitcoin faucets, then you must know that although bitcoin has only one kind, one unit of bitcoin can be divided into 100,000,000 shares and people call it ‘Satoshi‘ to honor the mysterious bitcoin founding father Nakamoto Satoshi. By dividing, that means that the minimum amount that the bitcoin blockchain can deal with is 1 Satoshi. From a recent prediction, bitcoin price will reach $100,000 in 10 years, and that means 1 Satoshi is worth $1/1000, or $0.1 cent. Still quite a reasonable minimum unit.
http://bitcoinpricelive.com/wp-content/uploads/2014/09/0.jpg
What about us, Steem, in the future?
Here comes the Question: Is our minimum unit too BIG for growth?
From what I have learned during my almost one year with Steem, the blockchain can only process Steem or SBD to the 3rd decimal place. That means our minimum unit in the great Steem economy is one thousandth of Steem, or SBD.
If Steem is to reach the assumed goal of $100 in the whenever future, it means our minimum unit is worth $0.1 !! That is, 1000 times larger than 1 predicted Satoshi!!
From where I live (Taiwan, using $TWD, roughly 1/30 $USD), our minimum unit is $1 TWD, which is $0.033 USD. I think it is a reasonable minimum unit. After all, how often do you use USD pennies or nickels?
The above calculation I think is reasonable. Considering the economic development of many places in the world is lower than Taiwan, the demand for a lower minimum unit should be higher. Considering that Steem might actually grow much bigger than we assume above, the issue will be even more significant. Of course, unless there is something wrong with my understanding of the system or maybe this is not a big issue technically (maybe a HF can deal with it?) … Then, do let me know.
https://steemitimages.com/DQmatb8bS5An5nr2x8wNakmCvydmWwUUysgfEtqkTjMMnHr/image.png
If 1 Bitcoin equals 100,000,000 Satoshi, then let 1 Steem equal 1,000,000 Dan?
If we are to have a smaller minimum unit (I don’t know how…), maybe it’s time to discuss the name? :D
images sources: pixabay (1,2,4); 3 from here.
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