The post doesn’t have anything to do with more STEEM on the system in the slightest.
The rewards pool is set, and based on inflation. There is a set amount of inflation in the pool for each round of voting (the payout window).. whatever posts happen in that time period split the inflation pool, based on what votes (by stakeholders) were allocated to it.
The Burn posts simply take their cut of that pool and send it to the null account, which is essentially taking it out of circulation (burning it) as it can never be sold. So, less STEEM that is in circulation, the more scarce it is and therefore more valuable.
Yes, if no one Is buying STEEM the amount circulating doesn’t matter much.. but supply and demand is a thing, the burn post is simply addressing the supply aspect.
I’m speaking of the Burnpost (doesn’t have anything to do with SBD). I’m not that familiar with the SPD Potato project other than they are attempting to use the STEEM to buy SBD to help the price.. sort of how you are explaining. They are actually using the rewards to purchase SBD, different than the burn post.
Yes, i understand the idea of the Burn post, but they have been happening for what now? 2 years?
The model doesn't make sense, because on the Steem blockchain, the supply will always increase. It is an inflationary coin. It will be printed forever.
You know what people miss about the economy of Steem? Is that it's tokens aren't supposed to increase price over time. What happened in 2017-2018 was an anomaly, caused by the cryptocurrency frenzy of that time. And since supply of Steem/SBD at the time was very low, prices moved fast.
It doesn't matter how much Steem they burn. There will always be Steem entering the system, and the supply will always increase.
A better use of this burned steem would be to use it to make real improvements on the whole ecosystem.
Donate to projects, create projects, pay already popular creators to encourage them to join the platform... there are way too many better ways to improve the economy than fight against something that can't be beaten.
Many would say that those things are already being done... perhaps, right now, there are no projects or creators they feel add enough value to support. So they burn until there are. That’s a pretty simple concept.
Also, yes STEEM is inflationary, and that inflation is supposed to be decreased over time. Distribution is a main reason, as well as supporting content and projects as you said.. but maybe the increase in burn posts lately is a good sign that it’s time to decrease inflation or push some efforts to actually make this place attractive to outsiders, so they will come. I personally don’t think just handing out the inflation has been helping much.. I don’t see any projects or creators who are bringing people in, and those that are are being supported. So while we wait for more .. I guess burning is an option.
No one is trying to beat anything, it’s just a simple way to remove some of the supply when some investors don’t see enough worth supporting I guess.
Then it is doomed. No one will invest in it, and the price will crash from however many people want to cash out (even if it is a relatively small number).
You absolutely need buyers to maintain a price in the presence of sellers, and for there to be buyers the investment has to be at least somewhat promising. If and when people believe that the price isn't supposed to increase, the entire project will be a complete and rapid failure. Thankfully that is not entirely the case at this point, but unfortunately there are many doubts.
In reality, the amount of inflation matters. The market may well be able to absorb say 1% inflation but not 8%. These numbers are of course hypothetical, but it is clear that less inflation is easier for a market to absorb for a given level of demand.
Do you invest in USD or any other currency? No you don't. You speculate it's price will appreciate or devalue against another currency. That is how SBD is supposed to work, like any other currency. Or you trade against another currency because you need that foreign money.
What increase the price (long term, not short term) of a company stock? Increase of the value of the company. That is how STEEM is.
So, SBD doesn't have an utility except speculation, therefore there is no reason for anyone to buy it.
And why would people buy a share of the blockchain (STEEM), if this place is totally unnatractive for the general people?
Why would I invest on something that it isn't increasing in value?
Unless those that have the power (big stake owners) get this instead of squabbling over things that doesn't matter, steem will keep on sinking. And this is not speculation. It's a fact. A basic economic fact.