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RE: STEEM Dilution Rate - MUCH higher than you might think…

in #steemit7 years ago

I remember reading £1 GBP in the 70's in 2012 think it was was only worth £0.08 from what I remember reading. This shows how money can become so inflated @hisnameisollie.

Thanks for adding to the facts. It is good to know how inflationary is an issue but often is workable as we find in our economies since the change from gold standard to fiat currencies backed by promise.

Something you don't cover, and I think perhaps it might be because this feature was added later than this post, but I am a new member so not sure. The promoted section requires payment and this is sent to @null which essentially helps ease the supply. As more people advertise then this helps reduce the supply. The ability to store and get back steem over time is also another way that can ease the flow. Also you don't factor in people losing coins and people not using steem or trying to earn but just using steemit.

These are all sieves which over the long term matter as those things remove coins. In the case of promoting that coins are not coming back into supply. It is only a portion that is traded, especially with prudence after seeing exchanges such as Mount Gox go down and I believe all these will factor in providing an ease in supply.

Overall, what I can see is that though supply is an issue, demand is also an issue. When I look at DOGE coin, it used to have a declining reward over time, however they changed that when I last checked where DOGE coin will continue to provide an ongoing excess. Now when I look at DOGE coin this infinite supply has not effected its price. In fact I still see it hit highs and lows as it had before.

Good observation btw. Always important to look at all different points.

Create a great day,
@kozan