Compare blogging with Bitcoin mining.
- Investors buy Bitcoin on the market
- The price of Bitcoin rises
- Rewards for Bitcoin miners go up
- Bitcoin miners receive Bitcoin for mining blocks
- Miners dump their Bitcoin to pay their electricity bill
- The price of Bitcoin falls
- Investors buy Bitcoin on the market
- Meanwhile, more and more Bitcoin gets in the total supply (until 21M)
- The price of Bitcoin keeps rising because demand is increasing faster than supply.
You also need to put "network effect" into this equation.
https://en.wikipedia.org/wiki/Network_effect
But can Steemit demand increase faster than the supply?
This image is from @fyrstikken
Only time will tell...
As @ocrdu said, demand is key. If Steem could be used to advertise on the network for example there would be more demand for Steem. In my humble opinion we should have more reasons to buy and hold Steem than just curation rewards.
This depend whether people can simply click on your image to view the original or they need to figure out that they need to right click and choose open in new tab.
(The UI sucks)
What are these number from ? 0.95 inflation ?
Demand is key here, I think. Maybe the only way to get and keep the price of Steem up is being able to buy things with it in the real world directly in stead of through Bitcoins. Speculation and buying Steem just to be able to get a ROI through curating doesn't seem to be working well.