Money doesn't hang on trees.
The world we live in right now can't allow everybody to be rich.
If some people are wealthy, others must own less. Supply and demand dictates the value of money, goods and services. If one thing isn't as valuable as something else, it's simply less desired.
There is no easy way to become rich. It does happen occasionally, but that's definitely one in a million. That's not just a figure of speech. Most people will try to become wealthy for all of their life, but few actually succeed. And that's a necessity. It's the essence of everything, that demanded things are more valuable, if there is a limited supply of said thing.
What makes Bitcoin so valuable?
Nothing. Literally nothing. Bitcoin has no real value. Sure, decentralized blockchain technology will be useful in the future, and there's a whole lot of potential in this technology. You shouldn't believe the hype and be blinded by potential profit, however. If everybody is profiting, then who's losing? Once someone starts to sell off their currency, it will alter the supply and in effect lower the value of the currency. If you know anything about stock, this is kind of similar, in my opinion.
Blockchains are a fancy new technology with a lot of potential, but it's mostly hype that's driving the price up for cyptocurrencies such as Bitcoin and Ether.
Cryptocurrencies are huge bubbles ready to burst.
What we're seeing right now, is a magical bubble of cryptocurrencies rising in value. Bitcoin is a prime example of why this cryptocurrency hype will go wrong very soon. Money will be lost. People who invested more than they can afford will get ruined.
The image below explains how market crashes usually work. There's no set definition of how these work, but this is a great guideline of what a market bubble looks like.
Credit to the source of the image.
First off, it gains media attention, then the public knows what it is, and then when it's already too late to join in, greedy investors get on the hype train. People invest more than they can afford because they think it's a magical answer to everything.
Nothing will rise, and rise, and rise forever. The bubble will burst. Maybe very soon. Maybe later. But it will burst. And people will lose way more than they can afford to lose.
Why steemit won't solve poverty, ever.
Sure, steemit is a good platform, great even. I really like steemit and the idea that people are paid for being on a social media. And the fact that it's done using blockchain technology is absolutely amazing.
I've seen a few posts that proclaim how steemit is the solution to poverty. But what some people don't consider, is that everybody can't be bloggers and make loads of money off of it. The value of Steem Dollars, or the amount of Steem Dollars writers would earn if everybody in the world was a user of this platform, would be close to nothing.
Why do I believe this?
This leads me back to my point. Money doesn't hang on trees. Supply and demand is key.
Nobody would want to sell you a pair of sneakers or a new handbag for Steem Dollars, if everybody made a living wage off of steemit.
It's very simple. It would literally make no sense, at all, for shop owners, car dealers, real estate agents or anybody else to sell actual necessities to everybody, if they could just write blogs and make loads of money themselves.
Don't get me wrong, steemit has loads of potential. I believe that the demand will increase for steem. Quality blog posts and informational content is really valuable.
However, either the supply of steem will increase relatively to the amount of users on the site, or users will be awarded less steem for posting. If the amount of steem increases too fast, the demand will drop, and so will the value of Steem Dollars.
I might not be right, but I'm definitely not wrong.
Feel free to disprove my post. There's at least a good amount of truth to what I mentioned above, however I won't say that I know everything, and thus I encourage anyone to comment on this post and let me know.
If you like my content, please follow me on steemit. My username is @tundraxd.
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