I've always wondered if high-frequency trading in the forex markets have anything to do with improving the value of its currencies. So I Googled a question and found this in Quora:-
HFT is often bandied about in the media as a greedy activity that produces no real economic value. It's an easy to believe argument - certainly no ipods are directly created and no minerals are mined. The argument doesn't seem like a proof though.
Is HFT creating economic value via creating liquidity or some other value or is it truly just theft and why?
Personally, I think high-frequency trading can be made to produce value. Look at it as high-frequency social activity. Our ancestors used to trade, buy, and sell. Now Steemit is speeding up this process between people (or more abstractly, markets) with the use of post, comment, and vote - soon to be made limitless.
A Call for Minimum Viable Culture (MVC)
If we're going to have a useful, valuable currency - it should be used frequently, right? Preferably with a minimum understanding of value - it's subjective, perceived. I think the following quote is very profound:-
Interaction first, transaction second: the new control is trust. Therefore, I propose that our thinking — and then, our actions — must urgently head in a different direction. Here is why: transactions are always a consequence of attention and attraction, interaction, communication, engagement, and trust. It is never the other way round.
by Gerd Leonhard
No matter who you are, just Steemit by posting, commenting, and voting.
- Be contributory.
- Listen / Learn / Adapt.
- Have fun (optional).
- In one word, being social.
If you need to bot things up, I would suggest giving a follow on accounts that seem to exhibit this Minimum Viable Culture. Such characteristics would improve perceived usefulness / utility for the network, which in turn should also improve the value of STEEM. That said, I'm glad there will be a focus on communities / engagement / stickiness down the road. The STEEM blockchain is designed to be fast and frictionless too, which helps with this line of thought.
So if value is based on belief, then widespread and frequent usage of said currency gives it value, am I right? I have a feeling there may be a rock & roll phase coming soon, whatever that means.
