CUT
Actions speak louder than words
edit: To be explicit. Undistributed bytes are being given away, but not to the speculator/investor who already bought bytes, they recieve nothing from the remaining pool but it does go elsewhere. Thus the supply is being inflated elsewhere or another way, the value of the unit of byte being diluted. Therefore for the speculator/investor who bought bytes their investment's value is diluted. For the steem user who got some free bytes they don't care the value was diluted, they didn't buy them. It was a windfall. For the speculator / investor who did buy them, now they see that there are more bytes flooding the market. Their own bytes that they bought when they were scarce are not so scarce anymore, the value goes down. It is very basic economics. The speculator/investor has been shafted. To rub salt in the wound, the rug was pulled away without warning. Previously the speculator / investor was standing in line to benefit from airdrops. Surely you see how this is an explicit negative for the speculator /investor? It isn't a tweet, it is a very definate action against the speculator / investor, an act of hostility.
Sure investors don't get any coins anymore simply for holding, and undistributed funds go to others, but that does not mean that investors get diluted. It all depends on what value Byteball gets back for these undistributed coins they spend on these projects. If value they get back is higher than the coins spend, it will raise the value of all coins in circulation, so the investors profit, but if the value is lower than the coins spend, then all coins go down in value and indeed you can call it dilution.
But a poor investment is not really dilution as it is part of doing business that you will sometimes pay people or projects that end up not delivering. Dilution is when one on purpose creates more units and gives to people that did not create any value, thereby indeed for sure diluting coin/shareholders.
Yes the value can rise and everyone happy even the shafted speculator/investor, if some amazing bull run occurs. Demand 'might' outstrip the increasing supply. So far we have not seen that, the demand has done the opposite and decreased while the supply has increased. Byteball has plummeted down the marketcap chart out of the top 100.
Looking only at the supply side for now, the supply
is being inflated by the air drops of undistributed bytes, can we agree so far? That is a headwind to price. Not because of anything to do with byteball but pure economics. The price is determined by supply versus demand. As I said basic economics. Increase of supply without any change in demand means price falls. And it is necessary that the supply increases, because the bytes have to be distributed. That was the premise from the beginning.
Looking at the demand side now, byteball like most crypto is very very speculative. This is because it is such a fledgling technology. There are very few things you can do with your bytes except share some with friends. Or speculate that the amazing tech will become valuable. Maybe you can buy a pizza somewhere? I don't know. I haven't seen any real adoption of bytes yet myself and haven't found a place to buy a pizza with my bytes. Therefore we are at a time in byteballs history where speculation is very important. That is currently, wether you like it or not, its main use. And yet the byteball powers that be have decided to shaft the speculator / investor in order to try and grow the network by giving freebies to other crowds while simultaneously diverting away from speculator/investor, ie shafting the main user.
It seems like you byteball techies are amazing at tech but clueless about economics. The proof is in the fall that byteball took down the rankings. Even in a crypto wide bear market byteball suffered much much worse. Because it failed to observe basic economic priniciples about supply and demand and/or failed to see where the demand was coming from at this time in the byteball history. You can't have an entire working ecosystem spring into existence like a magic trick. It has to grow. Speculators are a vital part of the process.
* I made a couple of additional minor edits to try and clarify certain points.
