But this means that SP also gets diluted. So at constant price, if you're inactive, you'll be down after a year. (correct?)
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But this means that SP also gets diluted. So at constant price, if you're inactive, you'll be down after a year. (correct?)
Incorrect
https://steem.io/SteemWhitePaper.pdf
Steem power goes inflationary up with steem as vests
If you hold onto 1 STEEM you will have 1 STEEM forever.
If you power up your 1 STEEM into STEEM POWER your 1 STEEM/vest will go with the #inflation https://steemd.com
(steem_per_mvests 236.342 - this number goes up - you get more steem in time pased from the initial STEEM to STEEMPOWER-vests conversion)
and be in time powered down into more #steem while they are being inflationary created....
.
One would say its not being fairly distributed for time being but with more users the distribution will also get better.
Like $
If you hold 1$ paper bank note it will always be 1$ paper bank note. Unless you put it in digital form of 1 bankpower $ and get mouse size interests on it..
.
But if you only hold your 1$ paper bank note you might gain or lose on purchasing power over time.
And banks/federal reserve + other money creating plants makes profit by lending those newly created dollars/yuan.. to banks, people.... bla bla bla
So be the bank of your own
and by powering up your steem to steem power you act like the bank and "lend/distribute" those newly created STEEMs according to how much #power of #steem you actually have.
I might also undestand it all wrong
Ta ta
http://www.investopedia.com/terms/p/purchasingpower.asp
http://www.investopedia.com/terms/p/purchasing-power-loss-gain.asp
https://steem.io/SteemWhitePaper.pdf
P.S. you can upvote your post/blog and distribute a bit of that inflationary #steem to your self sofort :) ithink, or?
... of course 1 Steem stays 1 Steem, but it gets devalued against any stable currency. That's what I meant in my original comment.
Ahaa,mhm,aha :)
We can say 1STEEM wil get 50% devalued from 1STEEM - from being 100mil STEEMs to 200mil STEEMs.
But it doesnt necessarily mean this devalued 0.5 STEEM will get devalued in worth/value term against "stable" currencies...
Thank you
You are half right I guess.
Cant say it will get devalued for sure.. In year from now there might be 220.000.000 steems each steem worth 7.04$. 1B+ market cap and it would still not devalue against "stable" currencies.
Because if you hold 1 steem it is always 1 steem.
And because of inflation there would be more steems and you predict that the price of 1 steem will fall/get devalued againt "stable" currencies because there will be more Steems created...
But must consider factor of steem going viral and 1.000.000 people register. that costs man. costs much :)
And which of your choice stable curency would that be, that Steem is going to get devalued against.
Til now it gained value against "stable" currencies..
1 Steem=£ 2.68
And looks like it will gain some more :) 1STEEM=3.52$ looks like 1 $ got a bit devalued against 1 STEEM and gets more devalued by minutes being converted to Steem power or SBD ;) dont forget about steem based dollars...
there is 90+ % in steem power so that STEEM doesnt volatile much... Whale might ocasionaly dive a bit :)
"Stable" currency can get also unstable against steem: natural disaster, domino efekt, Brexit... and other unpredictable & predictable economic complications :)
http://www.investopedia.com/articles/investing/090215/3-reasons-why-countries-devalue-their-currency.asp
https://en.wikipedia.org/wiki/Devaluation
https://en.wikipedia.org/wiki/Currency_appreciation_and_depreciation
https://en.wikipedia.org/wiki/Currency_appreciation_and_depreciation
https://en.wikipedia.org/wiki/Currency_appreciation_and_depreciation