LIQUID STEEM vs STEEM POWER
Following yesterdays successful and seamless HARD FORK 19 I thought it would be a great idea to share this slide with you and hopefully help those new to STEEMIT understand what is likely to happen with the price of STEEM.
Regular Readers of my Blog will know that I always like to break things down into an easy to understand explanation as I know how frustrating it can be at times to try and get your head around the nuts and bolts of the system.
To keep things very simple, think of two types of coins: "Liquid Coins" and "Locked In Coins".
- Liquid Coins - Spend today
- Locked In Coins - Spend in the future
STEEM and SBD are effectively "Liquid Coins" that you can draw out today and spend.
STEEM POWER is effectively the same, but you have locked it away and cannot spend it until sometime in the future.
What Hard Fork 19 has done by giving you more voting rewards on your STEEM POWER has effectively INCENTIVISED you to "Lock In" your coins..!!
This incentive to “Lock In” your coins in STEEM POWER has the potential to drive the price of STEEM up as there will now be less "Liquid Coins" available to buy..!!
This lack of availability of "Liquid Coins" will most like provide the catalyst to drive the price of STEEM higher..!!
For me the timing of Hard Fork 19 has been practically impeccable and faultless as it has tied in PERFECTLY with the uptake in New Users..!!
Think about it this way, we have just increased the number of Users at the same time as incentivising people to take their "Liquid Coins" off the market.
If this is not a stroke of genius, nothing is..!!
Thanks for reading.
Stephen