RE: Why is the price of Steem dropping. And why it is to be expected.

[sork]

Steem has an inflation rate of 100%, which means there is 2x Steem created each year. In practice, it's even more..
So, a whale can stay on Power Down selling Steem throughout the year, while being rewarded enough to maintain her bag for future earnings.

Morever, Steem Power represents 90% of the market. The price on the exchanges reflects only the last 10% real Steems...

Comments

[picokernel]

Steem does not have an inflation rate of 100%. Steem has had an effective inflation rate of ~10% for several months.

[sork]

"STEEM is constantly increasing in supply by 100% per year" in the whitepaper
https://steem.io/SteemWhitePaper.pdf

[xtetrahedron]

The White paper is not updated, there was a change a while back to ~10% inflation yearly.