Hi @booster916
SBD was meant to stay around 1$ but that is not the actual situation. If SBD would remain at 1$ there would be no problem with inflation.
You are correct. When SBD is near $1 there is almost no inflation. It can be seen when viewing the SBD graph on Coin Market Cap for most of its life before 21 November 2017.
And Steem will be printed less, the higher the value.
I have read somewhere that the inflation (please bear in mind I am referring only to inflation due to an increase in circulation supply) is 10% per annum (I think it is in stated in their white paper).
I also guess that the inflation of steem is not that high, compared to the mining of other coins.
Agreed it comes down to 10% annually which is insignificantly small.
But can you image buying into SBD in December last year and holding on till now. At the same market cap your SBDs would have devalued considerably.
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10% a year is really pretty low when I think about how many steem is generated daily with all the posts on steemit.
"The rate that new tokens are generated was set to 9.5% per year starting in December 2016,
and decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. The inflation
will continue decreasing at this rate until it reaches 0.95%, after a period of approximately 20.5
years."
This is what I found in the bluepaper. It is really a pretty awesome system. @Dan really knew what he developed
Great! Thanks for the information @booster916 I was looking around for this information to try and crosscheck my calculations in the post.
10% is so small you can neglect it in the bigger scheme of things. If you put in effort on this platform you can make up the 10% inflation easily within the first few weeks of being here.
And in the future there will be much more people and investors join steemit that will also increase the value of the platform, but also of steem and SBD
Agreed, and I trust that it will go that route, hence the reason I have invested in this platform. It is really a great platform if we could just sort out some kinks here and there.
Also, be wise when dealing here. I always kept SBD available and I don't do that anymore because of the current high inflation rate on the coin. I never knew this till I peeked at the graph on CMC.
I am still not sure what to do with my SBD right now. Normally I trade them into STEEM but right now the ratio is pretty low. A few weeks ago it was much better. I hope it will rise again so I can buy some more STEEM with my SBD
The answer is really not simple, I feel your pain.
Like @vimukthi explain in the comments above. There is not a lot of SBD coins in circulation and a small influx into the Steemit ecosystem can lead to a considerable increase in the value of SBD and also have good potential for profit.
It is however a decision you have to make because you are gambling on the possibility of the Steemit platform drawing more attention (increasing the demand for SBD) whilst your SBDs are devaluing at a very high rate.