If Steem has 100% inflation every year and my Steem power returns 90% of the 100% every year, Aren't I losing money 10% every year? I hear some people say that we are getting 200% back from our money? Does anyone care to explain?
A question about inflation
8 years ago in #steem by schrade (36)
$0.05
- Past Payouts $0.05
- - Author $0.05
- - Curators $0.00
Steem Power is linked to VESTS, which is like an ownership share. You may be losing some value in Steem, but this is more than counteracted by an increase in value of the platform. If Steemit really takes off, you can expect your Steem Power to double, triple or more in one year.
I think you are losing 5% each year if you hold in Steem Power. If you hold in Steem Dollars you will get 10% interest. If you are holding Steem then you lose 100% each year possibly but all that depends on where the price is at. It is complicated. I just upvoted you! I just posted steemit's first pool meeting where I talk about my initial thoughts about it. Check it out! https://steemit.com/steem/@brianphobos/first-pool-meeting-on-steemit-initial-thoughts-and-advice-from-someone-who-has-made-money-online-since-2008
1 voted you back, and I'm a 4 penny whale!
Because the value of Steem fluctuates, it's impossible to predict how much "inflation" there really is - but SP has value above and beyond the Steem that you get back over a 2-year period if you decide to cash it out. It also makes all of your actions on steemit weighted that much more heavily, so you earn larger payouts over time as you contribute.
Those who "cash out" lose influence and future earnings on the platform, in more ways than one.