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RE: Vlog 423: The current downtrend on Steem is taken many to the brink and beyond but not me.

in #threespeak5 years ago

There is less bitcoin sold from mining than steem inflation. Steem inflation is around 8%. Mining inflation for btc is a bit lower than 4%.

Also, Steemit, Inc is selling millions of steem per year, which if I remember correctly represent half the amount of the inflation.

So steem selling pressure is 12% of the supply per year.

More importantly, trading volume on bitcoin is very high, so any selling pressure is going to get eaten up by liquidity. But the steem markets are totally illiquid, so selling pressure will get the price down.

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Sure, I agree.

But with bitcoin, you also need to pay for the electricity. That certainly puts selling pressure on the miners creating new bitcoin.

On STEEM, there is no such selling pressure. There is the inflation, and indeed Steemit Inc. selling their portion gradually.

The liquidity and velocity of bitcoin certainly help to absorb this more easily.