Inflation/Deflation and STEEM #video

in #steemit8 years ago

In today's video I use a simple analogy to explain how I think about inflation and deflation as well as how the Steem-Backed Monetary System addresses these two economic issues that have proven problematic for every single monetary system ever created, mainly because they are still widely misunderstood by even accomplished academics.

You may notice that at one point in the video the audio shifts dramatically. Unfortunately that portion was not recorded properly and I had to use the audio retrieved by the internal microphone on one of my cameras. Still trying to get a handle on my work flow :)

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I love your post , your like our Elon Musk, thanks for all the educational posts :)

Thank you sir, but I prefer to think of @dan as our Elon :)

It does seem like a lot of people don't know the difference or what is inflation and deflation. I had a few questions myself, but your video helped shed some light on my questions.

Thanks for sharing with us your in-depth video @andrarchy!

Glad it could help. I want to do some more stuff on this that is even more clear, so I'm glad to know there would be some interest.

I say go for it @andrarchy!

I'm sure that a lot of us on here would love to learn more on the topic of inflation and deflation and how it affects Steem.

Thanks for the reply and the upvote.

I really enjoy your explanations Andrew! Keep up the good work!

Thanks! Glad you like them :)

I have said it once and I will say it again. You are the best god damn teacher I have had in my life!! Please make more and more videos on various topics. I just love learning. So thank you very much :)

Yesssss thank you thank you thank you

Always killin with the explanations! Your videos will go down in steem history. Thanks bro.

Thanks man! Better ones coming. Shorter more scripted

I really like what you said at the end, if someone is explaining it in a convoluted way, then they're probably not trying to spread knowledge. Too true.

I've spent years studying law, reading Brian blumes, restatement second, and so on just trying to figure out what the hell was going on. And that's it, it's all contracting, from associating with a govt to private ordeals it's all contracts, terms and conditions being the law.

I love your little rant about attorneys in the beginning as well. If an attorneys job is to attorn then I often wonder, what are they attorning.

I still haven't figured out whether the value of a vest is going to go up or down though so if you have that question answered I'd be happy to see a video on that as well.

Ether way awesome video man and as always I do appreciate it. Thank you.

Thanks! Glad you liked it!

I think I give you everything you need to know about the monetary system in this video:

I don't think it makes sense to say "the value of a vest." "Vesting" is how Dan chose to refer to Steem Power as far as an investing category. Steem Dollars are liquid because you can exchange them for Steem today. Steem Power is "vesting" because you cannot exchange them for Steem today. The value of a unit of Steem Power (a vest) will be whatever the market price of Steem is based on when you decide to power down and the pay out schedule (I believe each weekly pay out is based on that current price of Steem). As I say in this video, I believe that the productivity of the population combined with the growth of the population will outpace the growth of the Steem money supply which means that there will continue to be greater demand for the currency than supply. This should mean that the price of steem will go up over time, and so cashing out your SP in the future will always net you more money than if you cash it out in the present. However, predicting the future is impossible and this discussion is only relevant to removing your capital from the Steem Economy. If you do not see the long term benefit of the ecosystem then that means that you believe that the price of steem will go down over time and so you should cash out as soon as you can. If you believe that the Steem monetary system, steemit, and any products and services that will be built on top of Steem will create tremendous value in the future, then you should keep your capital where it earns the most interest: in Steem Power. It really is that simple. Hope that helps! :)

Why do you say that SBD is a currency and BTC is not.? SBD price fluctuates and is not really backed by USD. Right now 1sbd = 0.8usd and it changes daily

A currency is the official medium of exchange of a population (at least that's the most sensible definition I find for the word). The steem dollar is the official medium of exchange for steemit. The price is stable it is not STATIC.

😁😁😁 Hey man! :) I watch all of your videos on YouTube I absolutely love them. I saw a few where you seemed nervous, but once you got going, SO MUCH VALUE keep up the good work and stay awesome!

Listening to your post as I type this, I am always pretty impressed (secret code word for overwhelmed) by the information. Definitely good and I like your points you make and how you explain them. 40 minutes to watch still.... but I am a multitasker lol

haha yeah, I'm working on condensing my stuff ;) I have no issues with people multitasking, watching it in pieces, or straight up ignoring it haha.

Nope. Watching the whole thing (Cat popped up about 26 minutes in lol) One thing I would ask.... in the future maybe having cliff notes after the video? I enjoy the video and your explanations of the matter... It's a newer subject matter to me so I am going back 30-40 seconds here and there to have it firmly understood. I enjoy the material a lot, just a thought.

Yup, that's a great suggestion. I'm probably going to be scripting these more going forward, so creating notes should be much easier.

Wow thank you for sharing, Steemit white paper.. I started reading it and though this would be good content to make video's talking about the white paper in sections..

I enjoy your videos. Thanks for posting :)

Will take your word for it, lawyer-guy .. because I have no f'n idea what you were talkin bout. :)

I watched this, and forwarded to my nephew for his high school economics class. Your explanation of "DEFLATION" (i know there is multiple versions) was something that I am glad i saw. Thank you sir! Subbed on youtube!

Happy to help! I think I'll be doing done more that are shorter and more scripted

In terms of the audio for this, it sounds like the camera doesn't have an external mic. I would recommend keep the same set-up, but add an external mic, with a windsock, on the second camera. The windsock should help with the echo in the room.

And of course your wireless mic, is attached to the main camera.

Great video of course.

Why don't the organisms just share? :)

They do. They come up with abstract tokens to represent the amount of value they are transmitting back and forth. Economic exchanges are sharing. To believe otherwise is to believe that money is something other than a creation of the human mind, which is objectively false.

Exchange is based on receiving something in return. Sharing does not require that one gets anything back. Why did the organisms have to barter?

Because scarcity was a real issue back in the day perhaps?

That's all I can come up with is people had a fear that there wouldn't be enough so they began to hoard as much as possible instead of taking the other route of sharing.

Human wants and needs are infinite while resources are limited. In addition, different people have different skills. We trade, barter, and share so that we can all take advantage of our relative strong suits. I am not good at making clothing so I have to acquire clothing from someone else. Since clothing is hard and unpleasant to share, I purchase it.