I do not understand this very well, however, does this mean that SP mitigates the effect of inflation?
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I do not understand this very well, however, does this mean that SP mitigates the effect of inflation?
No. Only a 8.77+% interest rate in savings would mitigate the inflation rate. Currently, we have no way to gain interest off of our steem/steem power.
The amount of STEEM being stored into SP (a long term contract) which is non-liquid is far larger than the liquid supply of STEEM. I don't agree that inflation is an issue. If you want returns of your STEEM, then convert it to SP and blog. Don't hang your hat on getting interest gains on that SP even when the market is great and the liquid supply is low.