The problem is that currencies, do not need a high inflation, bitcoin and ethereum for example. Imagine what people would rather choose to hold, ethereum which is low inflationary (and maybe even deflationary in the future) vs a coin which has 2-5% inflation.
You are viewing a single comment's thread from:
The problem is that their is no problem. does it matter if their is 100% inflation if your return is 200% a year?
Yes a lot lol, because most people are not able to make a 200% return a year. If your system has 100% inflation it's going to collapse. I get your reasoning, it's basic economics for one individual. As a system you have to look broader.
I guess you could say that by being active at some capacity means that you are out pacing the inflation rate. I can understand that Hive may actually need an inflation rate in order to encourage the generation and curation of content. It’s utility means that it’s not just a coin to hold it’s meant to be utilized.
What about holding HBD’s? This should be another viable way to out pace the inflation rate as well.
I guess what’s concerning could be the rate of inflation and how easy it is to earn and offset that inflation.
If central players control increasingly more of that it will perpetuate group think (Hive Mind) and that erodes the freedom our accounts were originally founded upon.
I’m not even going to get into how the Downvote is being used for malicious intent and is a direct attack on ownership of Hive accounts that have less governance Token poweredUP.
Great observation you made here. And great point to illustrate to people who think hive has no intended utility. The problem is that the hive that is given out (by centralized big stake holders) do not equate to extra hive most of the time. Most of the rewards go to content creators, who don't bring in people or capital from outside Hive, which is why this system is not sustainable if authors don't bring in external capital/eyes. And they rightfully don't do so, because they are incentivized to please whales and big curation groups.
Great view, I am quoting this in my next post.