Open your Steemit Wallet. Click refresh. Make a note of the exact amount of STEEM Power in your Wallet. Now wait 5 minutes, and refresh. Notice the difference between the number you saw before and the number there now. That is your interest. If you wait longer to refresh it grows more, so you can see how fast it is growing.
It is really amazing how this all works. The money supply increases but interest is earned on held money to offset the effects of inflation. This allows for an economy with unlimited growth and none (or at least not as many) of the side effects of an inflationary currency. It's really genius.
The Interest actually is the inflation. About 90% of the inflation goes to interest, and about 10% of the inflation goes to Content creators and Curators. And like Bitcoin, everyone knows that it is going to inflate, so every coin made doesn't actually inflate the value, because it is a prescribed inflation, and won't ever change. It won't inflate in unexpected ways, so the value of the coin is already based on that inflation and will not be effected by it.
I get excited every little bit I get.
Far out.
Wow even better than I thought!
Thanks. This simple explanation helped.
The problem is when you have 5 STEEM Power, the growing rate is really small, so if you don't find support to grow at the beginning, the impact will not be that great. Everyone is talking about finding a whale but what I'm interested in is how can I achieve more through hard work and dedication?