The old financial paradigm required intermediaries to act as a means of value transfer. These banks were needed in the past, but no longer. It’s now possible to send transactions in very small amounts multiple times and typically make up for a single big transaction without transaction fees. The above service currently uses Twitter to transfer Steem, but the future will see this on many different social media accounts in many different cryptocurrencies and use atomic swaps.
In the same way that bitcoin started to disintermediate Western Union and Paypal in the 3rd world, Steem will begin doing the same thing, particularly in more developed nations. As a software business owner, I’ve always had a lower limit that I had to charge when using credit cards because anything below $5.00 just wasn’t feasible. Anything less than that would get entirely eaten up by the banks in the form of various fees. With Steem, there are no transaction fees whatsoever, so one can send anywhere from a hundredth of a penny and up.
source
I know what you’re thinking… too good to be true. I’ve been like this too, since the 60’s with the big black boot of authority on the back of my neck. Long term this will turn most people into cynics. I still don’t trust advertising to this day and have long since avoided anything that’s been overhyped on the media. I always think “scam” first. If I didn’t happen to already understand the underlying technology this is based upon, I would still be a hard sell.
The old paradigm came with strings attached, particularly KYC (Know Your Customer) which acts as a form of financial censorship that gives some people permission to trade and not others. One achilles heel of the banking industry is that they can’t handle micro transactions because they have to charge fees as intermediaries. Steem has already solved this issue as well as Bitshares and soon to be released EOS.
source
In the future one will be able to buy something on layaway for a period of 60 minutes using a smart contract that pays the merchant 120 times over the course of one hour 50 cents each time for an item that costs $60.00. Why would anyone want to do this? First of all, because the old financial system can’t handle the backlog and second of all because it sidesteps KYC. Small is the road to freedom.
Once everyone on social media has received a tip in Steem which will be in the hundreds of millions, the accountability of the KYC system will collapse. It’s a bad system and it’s worse than useless.
Two Diametrical Trends (Large and Small : Global and Local)
source
This is the basic lesson. The mass media has been trying to associate two ideas together, that “globalism is good” in the minds of the public as a means to manufacture consent for large government. The idea is that if we have a single system which everyone is under, that it will be more efficient and make everyone happy. This is far from the truth. Uniformity is known to introduce depression. Change is what keeps us alive. And lastly, having everyone under one roof is totalitarianism.
The reason this mistaken idea is promoted is because globalism, which is like a large transaction, allows parasites to scrape more off the top in fees. When business is localized and non-hierarchical, it has the effect of eliminating middlemen. When transactions become small, but many, the middleman is forced out.
Donations (public bitcoin address):
3FwxQsa7gmQ7c1GXJyvDTqmT6CM3mMEgcv
