well.. im not 100% but in my mind since we can all upvote and create money out of thin air.. this will cause exponential supply.. IF when we upvoted our actual steem went down then supply would remain the same.. but it doesn't, SO for example if i give 10 upvotes to person A B C and D in one day they each can have more power to pay that forward.
i might be missing something so thats why im hoping someone can set me straight or else confirm.
thanks!
@eco-alex Every year, new bitcoins are created out of thin air because miners are spending money to burn electricity, unlike bitcion steem rewards content creators with new steem tolkens. I don't see an issue with the way that it's setup, obviously Dan spent a lot of time thinking about all of this when creating the blockchain.
im SURE Dan is an amazing person!.. im not criticizing.. im Trying to understand.. It's hardcore math to me..
Let me try to clarify.
The point of exponential money creation happens the moment you upvote.. SInce you just gave lets say 10 dollars, but you didnt lose the 10 you had.. we now have 10 dollars more in the system. If i do that 10 times i have manifested 100 dollars to various people.. I didnt lose anything and so this $100 is new money (right?) Then each of these people with their extra power and reputation will do the same...
So therefore we seem to have a Lot of money creation happening .. at least in my logic we do.. so what am i not getting!? The original point being that if everyone has loads of money then there will be a lot of cashing out / selling going on..
Please persist if im not being clear! This is quite important to me, as i DO see the unbelievable potential of Steemit. I have a lot to give, but i do want to understand what is going on exactly
thanks!
@eco-alex The way that I understand it is the curation rewards for the comments and articles is pulled from the inflation rate of 9.5% per year which is decreasing at 0.5% per year. As time goes on it will become harder to get curation rewards, because of the decreasing inflation and increasing amount of users.
ahhhhh!
okay
i think i get it
i need to start reading more i think.
thanks a lot that really helps already..
No Problem
So the curation reward is set to decrease by 0.5% per year. Still we have good time to make solid rewards as it is just the start and it is going to be huge.
so basically we have quite a few years or decades before the curation reward become significantly lower?
There might be some changes in future . Lets see how it goes