Yep that's correct, as i said in a previous post. short term steem price is likely to go up, however when growth of the platform hits the limit there will be nothing to offset the 100% yearly inflation , i suspect we won't even have to wait for this limit to be reached because buy support today is way too low to compensate for the 100% inflation, the only reason price does nt drop now is because people are hoarding, the crash wont be pretty when everyone realize this is similar to a ponzi
You are wrong in this, yearly inflation is 10% or less.
Growth doesn't need to be more than 100% per year to offset this. The fact that the less than 10% of STEEM that is liquid is inflationary/debased/whatever by 100% doesn't affect the STEEM POWER holders that recieve new coins every year, cheaper but more coins that as a sum somewhat protect you from inflation, bitcoin had the same inflation too.
wait..what you are saying is that steem power holders are protected from inflation because the system creates even more inflation, do you realize that when steem print more coins it makes yours worth less? You and everyone else are blinded by the fact that your steem power balance keeps increasing and failto understand that your balance is actually decreasing in value overtime because it is pegged to the steem value 1:1, what happens when 1 steem is worth 0.00000001$ ?
You are very confused and unfortunatly, biased, I will try another way.
The goverment of an economically healthy country(not zimpampue) decides to offer 90% interest rate to everyone that has his money locked in a bank account for two years and then inflates the food/goods and services prices by 100%.
more than 90% of the people deposit their money in banks and earn the interest rate. Next year, hyperinflation or not (or any other fancy word you choose) every banknote might have less value
but as a total all your money still have the same buying value as the year before. minus ofcourse the 100% - 90% difference.
actually the fact that only 10% of the total bank notes were in circulation may make them offset the 100% rise in prices or even make them worth more(as is happening with STEEM right now), because of their low supply, finally a balance will be reached.
It may not make sense for a bank/goverment to do this but I think that in STEEM this puts some obstacles in whales to supress the price or f#ck the market as they see fit and also helps to move STEEM mostly in the hands of hodlers. If you hold liquid STEEM long term YOU ARE BURNED!!! unless of course demand is more than supply and even the liquid "inflationary" steem rises in price.
