From the mumble today according to Dan:
Bitshare's network won't die... but it's hard to find justification for the bitshares token to have a higher market cap, even if the network does continue to grow.
Congrats bitshares holders, please tell me how bullish this is!
Well it's hard to have a justification till Nov 5th when they, the largest holders of PTS & AGS and therefore merger shares are likely selling.
However the primary business model for BTS continues to be SmartCoins imo but they do require BTS to introduce liquidity subsidies and continue to make the DEX as user friendly as possible. (I'm also in favour of Yield subsidies for the period of time SmartCoin growth outpaces it.)
If demand for Smartcoins (Backed by BTS) grow over time then demand for BTS will grow with it until such time as the SmartCoin market reaches maturity. (Possibly many years in the future.) At that stage you would monetize your customer base through transaction fees in order to generate a return for shareholders like a more a traditional business. (As well as sell them other related products and services on BTS.)
Another business model on BTS is also a pure DEX model with trading fees for a range of user issued assets. While less lucrative imo, with CEX's like Coinbase valued at >$500 million there's also some potential there by growing that market to become the leading DEX & monetizing that customer base.
This is stark contrast to Steemit, which I see as being sub $1 million/uninvestable.
Reddit hypothesized that its platform would be improved if everyone who contributed to reddit.com by posting stories, adding comments or voting were rewarded with a fair share in Reddit, Inc1. Steem aims to support social media and online communities by returning much of its value to the people who provide valuable contributions
It has an almost guaranteed constant loss making business model by paying users to subscribe and paying them again for content while having limited potential for future monetization as demonstrated by Reddit.
As of 2015, Reddit had 542 million monthly visitors (234 million unique users), ranking 14th most visited web-site in US and 36th in the world.[6] Across 2015, Reddit saw 82.54 billion pageviews, 73.15 million submissions, 725.85 million comments, and 6.89 billion upvotes from its users.[7]
https://en.wikipedia.org/wiki/RedditEven with those stunning metrics Reddit only generated $8 million in ad revenue in 2014 and less than $1 million from their subscription service I believe.
http://www.recode.net/2014/3/3/11624114/still-in-the-red-reddit-to-donate-one-tenth-of-ad-revenue-to-charityEven after 10 years REDDIT is still in the RED. (It costs them more to operate Reddit than they gain in revenue.) Imagine if they had to pay for all the good/popular content on top of that... (Try some numbers, it's scary
)
So it will take many years of work to get to a fraction of Reddit's size and even then the opportunity is not very lucrative plus their, (Steem) model adds a lot of additional costs.
(Reddit users are also fickle and attempts to monetize further have been met with resistance and loss of userbase. Reddit also donate 10% to charity for positive PR. This indicates not only the difficulty of monetizing something similar to a Reddit type platform but also the fickleness of the users and the importance of positive PR. Given the unpopularity with the way they launched it's unlikely Steem will have the positive public perception needed among crypto-currency users (which may make up a large part of its initial userbase/target market) to gain strong initial traction either. You could hope that adoption of your currency outpaces costs but again it would be unpopular and viewed perhaps rightly as centralized so is unlikely to be adopted to any meaningful degree in it's own right either.)
Topic: IS BTS dead? (Read 24854 times)
