Remember that Bitcoin used a fixed 300 BTc per hr for the first 4 years. That meant it's inflation rate was on the same curve as steem.
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Remember that Bitcoin used a fixed 300 BTc per hr for the first 4 years. That meant it's inflation rate was on the same curve as steem.
That's good to know. The information on $USD in the White Paper was very useful too. For anyone that missed it;
(Extract from page 36) https://steem.io/SteemWhitePaper.pdf
From August 2008 through January 2009 the U.S. money supply17 grew from $871B to $1,737B, a rate of over 100% per year and then continued to grow at about 20% per year for the next 6 years. All told the money supply in the U.S. has grown by 4.59x over less than 7 years. During that same time, the value of the dollar relative to goods and services has fallen less than 10% according to the government's price index18. This real-world example demonstrates that supply is only one component of price.
i have a very small account but I have watched a $62,000.00 dollar SP account go down to $44,000.00.
I was thinking it was mainly because of the seven (7) day price reduction and average . I thought it would level off after the seven days, because the price was holding in a range. Now, if I am understanding correctly, what your saying is that this will basically continue to drop based on the dilution over the next year.
Sorry, I am a hard learner and there may be a few others....... Lol
Based on the extract from the White Paper on USD, not necessarily (Dollar fell 10% on 459% Dillution). If demand outstrips Dillution, the price could in fact rise...
Lots of if's and but's ;)
Thanks ... Still attempting to understand the dilution. Thanks for your time and response. :)
This. Many people don't realize how inflationary BTC was and still is. The difference is that Steemit has found a much, much better way to distribute the inflation.
But the thing with Bitcoin is we know how many will exist. The US government is still able to print money like paper.
Yes, that is why BTC will become a store of value. All western governments are stealing value from their citizens via fiat, and Bitcoin will give people a way to opt out. Many of the smart citizens are already doing just that.
Glad to have people like you filling us in who are newer to cryptocurrency. It's really reassuring to know that steemit is on the same track as bitcoin. Bitcoin is the gold standard, but steemit has the true potential to bring the masses to crypto and introduce them to bitcoin as a legitimate form of currency instead of only connecting it to the silk road and illegal activity and super volatility.