Good to see +3000 new accounts joining!!
Although I love Steemit and got a fair share of investment in it. My main worry with Steemit is that we also need enough investment coming in and I am not so sure the two come hand in hand as the reward pool get's dilluted more and more whilst the marketcap remains the same. More people joining doesn't seem to equate to higher marketcap at the moment.
Perhaps it takes time.
In order for Steemit to work I think the idea of allowing only 1% per week to power down is not going to make for a healthy economy especially as 80% is being held by topwhales.
Either the whales have to make a commitment to Steemit and promise not to collapse the system on itself, or there has to be an adjustable system so that if for instance there are to many people powering down ( right now it seems quite balanced on daily average) the 1% a week become 0.5% a week. Allowing for a better chance for steem to pick up it's paste and not collapse on itself.
I know that Steemit will then become a possibly very long investment idea, but I feel a lot of people are worried about investing when chances of inflation are pure dependant on how many people will power down versus people that buy into steem and perhaps power up.
I can quite easily foresee a massive imbalance with the current system.
Not wanting to hijack your post but interested to see what your view is on this.
No problem. You have to disconnect STEEM and STEEMIT to look at the bigger picture. What we have at the moment is Blogging site that has a Crypto Currency. In the future we will have a Crypto Currency that just happens to be built around a Blogging site. This is a massive difference. The fun will come when Pension Funds start buying STEEM. You have to give it at least 3-5 years before the real party kicks off..!! Stephen
Thx for the reply Stephen and I like your vision!
As you mentioned in the blog marketing is the way forward.
As we are still in the very early stages and most startups 90% fail not talking about crypto % might be higher, I think all possible safeguards need to be taken place to make sure that
the price of Steem thus the marketcap is protected up to a certain level as otherwise the reward system is pretty much useless. The main appeal right now is that everyone has a chance to make a little bit of money. The lower the marketcap the less appeal Steemit wil have imo.
In the meantime getting your family/ friends involved to have a go at Steemit is probably one of the strongest ways of spreading Steemit apart from getting some famous people over to start blogging on here.
Does the inflation rate on Steemit change as a function of power up and power down? I didnt think it did. But could be wrong
Well the amount of steem available on the free market ie. steem that can be bought drives the price down. The same effect as quantitive easing has on the normal currency markets.
Steem that is powered up is not part of the amount of coins openly available on the market until they are powered down.
So in terms of that I would say inflation is variable dependent also on the amount of power downs that are happening.
It does depend onhpwhat your definition is of inflation so let me know if I see this wrong! 👍
OK, I see how you are thinking about it now. Makes sense