This may finally answer the question you had as to how an investment in SP is possible to grow in value despite the inflation.
I don't really said that that your SP investment can not grow, people are mostly compensated for the inflation when powered up so their balance might not necessarily lose value. What I said is that if you have inflation the price is going to push lower and lower which means the rewards on the platform will go down which means your SP investment is probably not a good investment since there is no room for the platform to grow( less and less rewards)
A vest is essentially a share of Steem Power, and the actual number of shares that you own is not diluted by the inflation.
There is about 10% inflation used to pay for rewards and witnesses which you are not compensated for so your VESTs will be diluted by 10% every year.
STEEM being added to a vest
steem are not added to anything, it's the supply that is increasing and the price of steem at the time that makes the price of VESTs go up or down.
Imagine you own 1 % of a cake. Now someone brings another cake. That means that you own 0.5% of both cake. Now if you want to own 1% of both cakes you will have to buy another 1% of the second cake. ( this means you will have to buy 2 times more steem to own the same percentage because the supply goes up)
As a speculative investor though, one is gambling that the price of STEEM actually goes down at a slower rate than the inflationary effects, or that it even possibly goes up
This is very unlikely because when the price goes down the rewards on the platform goes down and so people are not going to buy more steem if they see that rewards are shrinking
As long as the number of STEEM added to a vest
Adding steem to a vest make no sense man, just think about this. Imagine the current supply of steem represents a company. Say this number is 100 steem and is equivalent to 1000vests. You own 1 steem which is 10 vests .Now the company decide to issue another 100 share, so this means that now the company is 200 steem.
This means that 1000 vests is now 200 steem so if you own 1 steem you only own 5 vests instead of 10, you have effectively been debased by 100%.
I am 100% positive that my first statement was correct.
As I have said in my other conversations with you, I really don't have any interest in getting in a 'debate' with you. I have done a lot of research on this, and I am happy to try and explain things to you so that you can better understand the platform, but I am not really interested in "proving that I am right" to you. I can tell that you actually have some misunderstandings in the way you think this works, which I have tried to explain to you, but you seem convinced that you understand it better than I do. You are welcome to continue believing whatever you want. Sorry, but to avoid this turning into an argument I am going to end it here.
Ok I know what you mean , number of steem rewarded are also increasing. The problem is that when you print even more steem to compensated for the price it is very likely to decline even faster, which is what happens the last few months.