I think Jerry's attitude here is just a perfect example of how a decentralized system brings out our true nature, the desire to help each other and to share our positivity and good fortune.
We are in now in an environment at Steemit where we are not being taken advantage of by the system itself, but instead we are feeling empowered. We no longer feel disgruntled and hopeless, because this system isn't rigged against us. Totally the opposite! So when we have abundance, and it keeps coming, then 'feeling good' is a very desirable thing.. Who want's to be rich and miserable!? It's MUCH more fun to be rich and share it so we can enjoy our time with others.
I DO wonder though, how far can this go and still be stable. What i mean is that it seems to me that we will have exponential growth of the amount of money in this system as time goes on. Therefore at some point it seems to me that a LOT of people would want to cash out and sell their Steem. What i wonder is how the price of Steem can stay up if there are so many people going to want to sell so they can spend some dollars!? Who is going to be buying All that Steem? I'd LOVE to hear a good response to this question!!
@eco-lax How do you reach the conclusion that we will have exponential growth in the supply? Isn't the steem that's paid out in rewards due to the 9.5% inflation which is decreasing every year?
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?
What about inflation? The numbers I share are based on today's voting power and actual inflation because all the rewards produced come from inflation and because most Steem Power is not used for voting! The more voting power used, the less each vote is worth meaning that if every single user only upvoted themselves, we each would receive an interest payout equal to our Steem Power at the current inflation rate. When considering the SBD conversion rate which effectively adds 20% or more to every reward payout at 50/50, the amount of rewards are actually higher than what I show here. As more whales get excited with the ability to vote comments up for $5, $20, and $100+, the value of voting power is likely to continue to drop and get focused at the top more meaning that it will take longer realistically than 180 days to double money with no change!
I'm so glad someone knows their numbers!!!
I will digest and assimilate
thanks for helping clear this up.. its not so obvious some of the details and implications
Thanks a LOT also for the upvote yesterday.. now you can have a few days off Steemit whilst your power recuperates ;-)
Superb explanation.