What effect does the planned 1:10 reverse split play into the total amount of steem created? Does not not lead to the dilution being effectively less?
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What effect does the planned 1:10 reverse split play into the total amount of steem created? Does not not lead to the dilution being effectively less?
As far as i am aware, it plays no impact, as by such point, dilution is fixed at 100% per annum (In Gross Terms, a large reduction, but in real terms, no difference). I have only experienced reverse splits in the Stock market, however they usually have a positive impact on the share price of such stocks...
General observation I must say..
Well if R/S in stocks have positive impact is that not because they would effectively be reducing the dilution of the total number of units? You go from a diluted state to smaller number of steems, only then to be diluted again? Maybe I just don't understand it well enough.
You are not talking crazy, keep drinking those beers man, its friday night!
:) @justtryme90 You are correct, it is a psychological impact of lower gross prices per X, not a dilution (which remains the same) impact which has the impact I stated above. I would refer this to my reply to @dantheman above to get an idea of my thoughts...
Cool, I think we are on the same page about this then, judging by your above reply to @dantheman.
At least I'm not off in left field with my understanding.
I am too quite a few beers in the hole tonight, so forgive me if I'm talking gibberish ;)