RE: STEEM price should be $109

Interesting, I am trying to get a deeper understanding of the internal workings of this platform/blockchain, initially I thought STEEM was a limited crypto, but yeah maybe I was a bit stupid/naive but I thought pretty much all cryptos where limited after the "mining process", as a way to solve the problem of hyper-inflation that "normal-money" is sometimes "suffering" from...@socky

Please correct me if I am wrong!

But STEEM is different and I guess the different Apps based on the STEEM-blockchain all use the system of "user SP"?

And the "SP" system is good since it creates a scarcity of liquid supply?

So less liquid supply higher demand?

I really hope STEEM based apps can take a large part of the marketshare for social-media. This would be awesome because the value of STEEM would probably potentially skyrocket????

(Just slightly paranoid about the possibility of some kind of future STEEM hyperinflation)...

Please someone reassure me this cannot happen?

The creation of new currency is always happening, but the market value of Steem will dominate the currency. Not inflation.

The big things that influence price are:

Supply and demand. Bitcoin has a very small supply which causes the unit price to be very high. The reality is that you can buy fractions of bitcoin. It is only a psychological phenomenon that people value bitcoin more due to the high unit price.
Trading pair: bitcoin, ethereum, litecoin, bitcoin cash, and Tether are common trading pairs on exchanges. STEEM is not.
The number of exchanges the currency is listed on. STEEM is listed on Binance, which is arguably the largest exchange in the world, but it is not widely available elsewhere.

If inflation worries you, then fiat currency should have you shaking in your boots. But don’t worry, as any economy grows, there needs to be new currency created to keep up with population and economic size. In Steem, I don’t believe that the growth of the currency will keep up with the population growth. People would literally have to quit the various Steemit apps in groves to be a problem. It would be difficult even then to kill Steemit as people quitting would make it more profitable for those who stick it out as their share of the reward pool increases.

Ultimately Steem is social media which is immensely popular. The Steemit platform is a little more difficult to get use to, but so was the internet when it was new. Now we can’t live without it. Steem will become ridiculously popular as many other social media platforms have. It also has so much more potential as the options for different apps are limited only by imagination. Compare that to other social media platforms where they have their theme and they are stuck with that theme.