Prove me wrong then , why do people buy steem other than to speculate?
To get more sway and profit in content curation, genius.
Topic: Steemit how can this thing be workable long term? - page 37. (Read 32336 times)
To get more sway and profit in content curation, genius.
Prove me wrong then , why do people buy steem other than to speculate?
To get more sway and profit in content curation, genius.
Bitcoin is deflationary
No, Bitcoin has not (and will not ever be) deflationary in our life times.Bitcoin will inflate until approximately the year 2140.
For the first 2 years of Bitcoin’s life the network sustained an annual inflation rate of over 100%.
For the first 5 years it was over 30%, and for the first 8 years it was over 10%.
Bitcoin ... has real utility ( demand) which is the exact opposite of steem
That is your subjective opinion. Not an objective fact.
Prove me wrong then , why do people buy steem other than to speculate?
Bitcoin is deflationary
No, Bitcoin has not (and will not ever be) deflationary in our life times.Bitcoin will inflate until approximately the year 2140.
For the first 2 years of Bitcoin’s life the network sustained an annual inflation rate of over 100%.
For the first 5 years it was over 30%, and for the first 8 years it was over 10%.
The point is bitcoin inflation rate is going down while steem inflation rate is not.
Bitcoin is deflationary
No, Bitcoin has not (and will not ever be) deflationary in our life times.Bitcoin will inflate until approximately the year 2140.
For the first 2 years of Bitcoin’s life the network sustained an annual inflation rate of over 100%.
For the first 5 years it was over 30%, and for the first 8 years it was over 10%.
Bitcoin ... has real utility ( demand) which is the exact opposite of steem
That is your subjective opinion. Not an objective fact.
I ll tell you in a simple way why it does not protect you.
When you inject more steem into the system it makes your money worth less
When you inject more steem into the system it makes your money worth less
No it does not, and this is the source of your confusion.
Let's use another example here. I have 10 coins, you have 10 coins. Now we create 20 coins out of thin air (100% inflation!) and give you 10 and me 10. Has anything changed here? No.
As I said earlier, this is a stock split dynamic, and does not change anyone's purchasing power, despite that scary "Inflation!" word.
Steem is a little bit more complicated than this, but not much. Until you understand how stock splits work and why the "inflation" created by stock splits is only an accounting adjustment and has no economic relevance, you will never understand Steem.
Following your example then, assume there is only 20 coins total in circulation and the price of 1 steem was 4$ when we both had 10 coins, now that we have 20 each the price of steem will be 2$, next year again we get double more coins the price will be 1$. You may not be affected by the inflation but what about the system as a whole . The 10% inflation used to pay for rewards on the platform will have to increase if the price of 1 steem keeps decreasing ( which will inevitably be the case, again you may not lose money but the price of 1 steem may be less than a penny)Of course this is assuming there is no demand for the currency but that's my point, i am trying to figure out long term how this is viable, today the only reason people buy steem is speculation, when steem will reach its growth limit and people stop buying it because its price keeps going down what will happen then. Well exactly what i explained above, the price of 1 steem will keep decreasing and they will have to increase the 10% inflation in order to pay for all new content and new users post, upvote rewards.
Steem ... hyperinflation will be harmful to everyone in the long run.
If you consider Steem as hyperinflating, then I guess you feel the same way about Bitcoin?
Bitcoin's hyperinflation sure has been harmful to everyone. It has risen from $0 to $657. That is super harmful for sure. I feel sorry for all those greater fool n00b (that one was for Anonymint) Bitcoin early adopters.
Quote
For the first 2 years of Bitcoin’s life the network sustained an annual inflation rate of over 100%. For the first 5 years it was over 30%, and for the first 8 years it was over 10%. According to the tool for estimating future inflation included with the Steem source code, Steem by contrast will achieve an instantaneous annual rate of approximately 12% after just 1 year (not including the effects of SMD operations).
If bitcoin supply had increased 100% every year for 7 year the price wouldn't be where its at today. Bitcoin is deflationary and has real utility ( demand) which is the exact opposite of steem, hyperinflationary with no reason to actually buy it other than speculation.
I ll tell you in a simple way why it does not protect you.
When you inject more steem into the system it makes your money worth less
When you inject more steem into the system it makes your money worth less
No it does not, and this is the source of your confusion.
Let's use another example here. I have 10 coins, you have 10 coins. Now we create 20 coins out of thin air (100% inflation!) and give you 10 and me 10. Has anything changed here? No.
As I said earlier, this is a stock split dynamic, and does not change anyone's purchasing power, despite that scary "Inflation!" word.
Steem is a little bit more complicated than this, but not much. Until you understand how stock splits work and why the "inflation" created by stock splits is only an accounting adjustment and has no economic relevance, you will never understand Steem.
That is not correct. Steem sends some of the money it creates to others, not just the persons holding SP.
Bottom line is someone has to pay for the payouts to bloggers and curators. It isn't all proportion to stake.
Of course. I was keeping it simple for the purpose of explaining why the 100% inflation is an economically meaningless accounting tool (since he didn't follow the earlier more accurate example). The much smaller inflation that actually pays out to posters and curators (and others like witnesses) is not meaningless.
I ll tell you in a simple way why it does not protect you.
When you inject more steem into the system it makes your money worth less
When you inject more steem into the system it makes your money worth less
No it does not, and this is the source of your confusion.
Let's use another example here. I have 10 coins, you have 10 coins. Now we create 20 coins out of thin air (100% inflation!) and give you 10 and me 10. Has anything changed here? No.
As I said earlier, this is a stock split dynamic, and does not change anyone's purchasing power, despite that scary "Inflation!" word.
Steem is a little bit more complicated than this, but not much. Until you understand how stock splits work and why the "inflation" created by stock splits is only an accounting adjustment and has no economic relevance, you will never understand Steem.
That is not correct. Steem sends some of the money it creates to others, not just the persons holding SP.
Bottom line is someone has to pay for the payouts to bloggers and curators. It isn't all proportional to stake.
I ll tell you in a simple way why it does not protect you.
When you inject more steem into the system it makes your money worth less
When you inject more steem into the system it makes your money worth less
No it does not, and this is the source of your confusion.
Let's use another example here. I have 10 coins, you have 10 coins. Now we create 20 coins out of thin air (100% inflation!) and give you 10 and me 10. Has anything changed here? No.
As I said earlier, this is a stock split dynamic, and does not change anyone's purchasing power, despite that scary "Inflation!" word.
Steem is a little bit more complicated than this, but not much. Until you understand how stock splits work and why the "inflation" created by stock splits is only an accounting adjustment and has no economic relevance, you will never understand Steem.
Very well. Have a good night. Go get some sleep!
That was a quickie. Did you score any smoochie pussycat on your 2 hour date?
Not tonight. 2 hours? Are you high or something? I was gone for almost 4 hours.
Whoops I haven't slept for 24 hours, so yeah time is flying especially when debating kiklo. You're a sugarpie compared to that monster. Happy to have you back. Please proceed to the other thread and tell me why I am wrong about Dan creating a centralized Frankenstein.
Thanks for the kind words, but I have wasted enough time here tonight. I am going back to Steemit where I have made $150 with no capital investment. Maybe if you send me $20 in Paypal I will stay and hang out with you?
No problem. Making money is understandable.
That was a quickie. Did you score any smoochie pussycat on your 2 hour date?
Not tonight. 2 hours? Are you high or something? I was gone for almost 4 hours.
Whoops I haven't slept for 24 hours, so yeah time is flying especially when debating kiklo. You're a sugarpie compared to that monster. Happy to have you back. Please proceed to the other thread and tell me why I am wrong about Dan creating a centralized Frankenstein.
Thanks for the kind words, but I have wasted enough time here tonight. I am going back to Steemit where I have made $150 with no capital investment. Maybe if you send me $20 in Paypal I will stay and hang out with you?
That was a quickie. Did you score any smoochie pussycat on your 2 hour date?
Not tonight. 2 hours? Are you high or something? I was gone for almost 4 hours.
Whoops I haven't slept for 24 hours, so yeah time is flying especially when debating kiklo. You're a sugarpie compared to that monster. Happy to have you back. Please proceed to the other thread and tell me why I am wrong about Dan creating a centralized Frankenstein.
That was a quickie. Did you score any smoochie pussycat on your 2 hour date?
Not tonight. 2 hours? Are you high or something? I was gone for almost 4 hours.
That was a quickie. Did you score any smoochie pussycat on your 2 hour date?
Steem ... hyperinflation will be harmful to everyone in the long run.
If you consider Steem as hyperinflating, then I guess you feel the same way about Bitcoin?
Bitcoin's hyperinflation sure has been harmful to everyone. It has risen from $0 to $657. That is super harmful for sure. I feel sorry for all those greater fool n00b (that one was for Anonymint) Bitcoin early adopters.
Quote
For the first 2 years of Bitcoin’s life the network sustained an annual inflation rate of over 100%. For the first 5 years it was over 30%, and for the first 8 years it was over 10%. According to the tool for estimating future inflation included with the Steem source code, Steem by contrast will achieve an instantaneous annual rate of approximately 12% after just 1 year (not including the effects of SMD operations).
Quoting only the irrelevant part of my post instead of actually debating the most important stuff, wonder who is lacking argument here...
No it isn't!
{It's your turn now!!!}
https://www.youtube.com/watch?v=XNkjDuSVXiE&feature=youtu.be&t=1m20s
Why do you need to write whole stories just to answer a simple question? this is the second time that you invent some scenario why not just answer my initial question with a simple 2 line post?
Are you having difficulties reading a paragraph or two? Is there something you didn't understand?
btw
https://www.youtube.com/watch?v=XNkjDuSVXiE&feature=youtu.be&t=1m20s
Quoting only the irrelevant part of my post instead of actually debating the most important stuff, wonder who is lacking argument here...
Why do you need to write whole stories just to answer a simple question? this is the second time that you invent some scenario why not just answer my initial question with a simple 2 line post?
Are you having difficulties reading a paragraph or two? Is there something you didn't understand?
btw
https://www.youtube.com/watch?v=XNkjDuSVXiE&feature=youtu.be&t=1m20s
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