The price of Steem is very worrying, the amount of inflation is eating up the value of it, and it is tanking day by day. The developers have implemented some austerity measures to slow down the devaluation, but it is not helping. What do do now? Panic? Nope.
THE SOLUTION
I have experience working as a quantitative analyst / market analyst for quite a few years, and I have studied Austrian Economics thoroughly, so I am quite privileged with economic knowledge ,and I know the markets very well. Let me share my ideas with you and possibly with the devs if they read this ( @ned @dantheman, please read!).
First of all we know that capital controls/austerity doesn't work, even the Keynesians agree with this, but their approach is to just spend/borrow limitless amounts, which is nonsense on their part , which in our case would destroy Steem, as the price is already falling too badly.
So what to do? Well we need to stabilize the price of Steem, but without restricting spending. This is tricky, because if people are powering down constantly and cashing out into Bitcoin, then this won't help us. So how to do it?
BBS - Bitcoin Backed Steem
It is quite easy, create an asset, for the Steem platform that is backed 1:1 by Bitcoin. It could be a smart contract or built on Bitshares, I am sure @dantheman can pull it off, after all he founded Bitshares.
We all know that Bitcoin is like a reserve cypto-currency with real value, while Steem doesn't have any real value yet, It will have once Steemit will incorporate P2P trading or other valuable systems, but for now Steem is only backed by speculation. This is not good.
If the devs would create an asset that would be backed 1:1 by Bitcoin, and swap the Steem Dollars with this asset, it would fix Steem's price collapse.
You would have to buy Steem in order to get this asset, so Steem would have a positive trade balance, and the asset would be exactly like BTC, so Steem would gain value proportional to Bitcoin.
We could also have a 1:2 peg or 50% reserve ratio, so that it can be more flexible, and then the daily curation rewards would be limited by Bitcoin's value increase, + 50% if for example Bitcoin's price doesn't increase that day.
It would be a more realistic / conservative method than it's current limitless inflation. Steemit is technically in hyperinflation now, so adopting this Bitcoin based asset, would be like returning to a gold standard or a 50% gold standard.
We are all libertarians/anarchists here, so let's actually use the Libertarian Austrian Economics theory, and not just pretend. Austrian Economics will save Steem, but it needs a reform of it's monetary policy.
- So either create this BBS onchain and replace the Steem Dollar with it
- Or create it offchain via Bitshares, but Steem Dollar has to go either way (I explained why in my previous post)
Make Mises & Rothbard Proud!
Upvote, ReSteem & 
