Steemit how can this thing be workable long term? - page 39.

albert11

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Quote from: chryspano on July 13, 2016, 09:24:02 PM

Quote from: iamnotback on July 13, 2016, 09:04:14 PM

Quote from: ?? on ??

SD or STEEM Dollars protect you from STEEM hyperinflation silly.

Not really. That is a gimmick in the design attempting to fool you.

The SP are debased at 10%, but the main tokens at 100%. But the problem is the SP may also fall in exchange value due to the 100% debasement of the main tokens. You can't have everyone move to SP and still debase what is left at 100% and not also effectively debase the SP at 100%. Mathematically impossible.

The mere fact that STEEM is 100% inflationary dosn't mean that it will be debased at 100% or at any rate at all, demand is key and with much less than 10% in liquid STEEM demand will always be high, right now for example demand is out of the charts and not only SP but also STEEM is gaining tremendous value(don't know for how long) instead of being debased.

Demand is far from high, when people tell their friend they can be paid just for writing content do you think these people go wallet in hand to buy steem?

You want to know what is holding the price? A 480 BTC wall , thats nothing when you know how many steem are ready to be dumped.

albert11

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Quote from: enhu on July 13, 2016, 09:19:30 PM

Steam as far as i know can be earned through writing contents to their site for the steem to be earned.
Now articles are easy to generate than users mining some coins which needs physical devices costing thousands of USD before they can earn.

that was very informative

chryspano

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Quote from: iamnotback on July 13, 2016, 09:04:14 PM

Quote from: ?? on ??

SD or STEEM Dollars protect you from STEEM hyperinflation silly.

Not really. That is a gimmick in the design attempting to fool you.

The SP are debased at 10%, but the main tokens at 100%. But the problem is the SP may also fall in exchange value due to the 100% debasement of the main tokens. You can't have everyone move to SP and still debase what is left at 100% and not also effectively debase the SP at 100%. Mathematically impossible.

The mere fact that STEEM is 100% inflationary dosn't mean that it will be debased at 100% or at any rate at all, demand is key and with much less than 10% in liquid STEEM demand will always be high, right now for example demand is out of the charts and not only SP but also STEEM is gaining tremendous value(don't know for how long) instead of being debased.

albert11

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Quote from: iamnotback on July 13, 2016, 09:04:14 PM

Quote from: ?? on ??

SD or STEEM Dollars protect you from STEEM hyperinflation silly.

Not really. That is a gimmick in the design attempting to fool you.

The SP are debased at 10%, but the main tokens at 100%. But the problem is the SP may also fall in exchange value due to the 100% debasement of the main tokens.

Just wait until people have started to figure out how to game this system.

Indeed that was my point, SP is exchanged for steem at a 1:1 ratio so they both are inextricably linked.

Basically the creation of new coins to compensate SP holders for the 100% inflation contributes to even more inflation, effectively solving inflation by more inflation.

enhu

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Steam as far as i know can be earned through writing contents to their site for the steem to be earned.
Now articles are easy to generate than users mining some coins which needs physical devices costing thousands of USD before they can earn.

iamnotback

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Quote from: ?? on ??

SD or STEEM Dollars protect you from STEEM hyperinflation silly.

Not really. That is a gimmick in the design attempting to fool you.

The SP are debased at 10%, but the main tokens at 100%. But the problem is the SP may also fall in exchange value due to the 100% debasement of the main tokens. You can't have everyone move to SP and still debase what is left at 100% and not also effectively debase the SP at 100%. Mathematically impossible.

Just wait until people have started to figure out how to game this system.

albert11

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Quote from: ?? on ??

SD or STEEM Dollars protect you from STEEM hyperinflation silly.

The problem is that the incentives to hold steem power and profit from the inflation are huge, so hardly anyone keep steem dollars.

albert11

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Quote from: CoinHoarder on July 13, 2016, 08:42:22 PM

Quote from: albert11 on July 13, 2016, 08:41:31 PM

Quote from: chryspano on July 13, 2016, 08:39:54 PM

don't waste your time with this troll(albert11)... when he gets all the aswers he will start asking some stupid questions from scratch again...

answer my question or fuck off troll

how holding powered steem would protect you from hyperinflation ?

It has been answered for you many times already.

The answers every one gave me so far is basically solve the inflation issue by creating even more.

If you have any other explanation im all ears

CoinHoarder

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Quote from: albert11 on July 13, 2016, 08:41:31 PM

Quote from: chryspano on July 13, 2016, 08:39:54 PM

don't waste your time with this troll(albert11)... when he gets all the aswers he will start asking some stupid questions from scratch again...

answer my question or fuck off troll

how holding powered steem would protect you from hyperinflation ?

It has been answered for you many times already.

albert11

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Quote from: chryspano on July 13, 2016, 08:39:54 PM

don't waste your time with this troll(albert11)... when he gets all the aswers he will start asking some stupid questions from scratch again...

answer my question or fuck off troll

how holding powered steem would protect you from hyperinflation ?

chryspano

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don't waste your time with this troll(albert11)... when he gets all the aswers he will start asking some stupid questions from scratch again...

albert11

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Quote from: traderman on July 13, 2016, 08:08:08 PM

The steem power is locked for 2 years and you can only cash out 1/10th per week. At least that is my understand of it. So steam power holders can only cash-out gradually.

that doesnt solve the inflation problem , it only delays it, its bandaid solution

steemit works today because it is growing , there is a lot of hype, new users every day ,etc.. so the price is bound to go higher in the short term

but what happens when steemit has reached its growth limit, barely any new users per day,no demand for the currency while the supply is growing crazy everyday to pay for all the new steem power holders ,content creators,etc..

You know what happen when all those kids millionaires decide to cash out their money without any buy support, the graduality won't save the price.

Go on steemit and check the balance of most of the people, they all have over 10k some of them even have 100k, do you really think steemit can make every teen and their brother millionaire without any consequence, those who will pay the price are those who will be the last to cash out when the thing crashes down

There is always a catch when suddenly you can make huge amount of free money.

traderman

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A lot of that "hyperinflation" is actually circulated in the community and steemers are incentivized to hold and build up their voting power so they can have a greater say in what gets upvoted and who gets rewarded. Holding the steem power generates more steem power. The incentives to hold long term are much greater than to cash out! This isn't the same thing as the inflation in fiat currency systems.

Quote from: jjacob on July 13, 2016, 08:15:11 PM

Quote from: albert11 on July 13, 2016, 07:25:08 PM

Hyperinflation has many purposes obviously, the main one is the ability to reward users just for posting without recourse to advertisement.
My point though is not what is the purpose of it, but can 100% inflation be sustainable in the long run.

On a side note, im not sure everyone ask me to go back and reread their posts, if anyone had actually answered my question i wouldn't be here anymore. I certainely did not read any compelling explanation so here is the question again

how holding powered steem would protect you from hyperinflation ?

It doesn't protect you from hyperinflation.
Which is why this is unsustainable in the long run.

jjacob

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Quote from: albert11 on July 13, 2016, 07:25:08 PM

Hyperinflation has many purposes obviously, the main one is the ability to reward users just for posting without recourse to advertisement.
My point though is not what is the purpose of it, but can 100% inflation be sustainable in the long run.

On a side note, im not sure everyone ask me to go back and reread their posts, if anyone had actually answered my question i wouldn't be here anymore. I certainely did not read any compelling explanation so here is the question again

how holding powered steem would protect you from hyperinflation ?

It doesn't protect you from hyperinflation.
Which is why this is unsustainable in the long run.

chryspano

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Quote from: traderman on July 13, 2016, 08:08:08 PM

The steem power is locked for 2 years and you can only cash out 1/10th per week. At least that is my understand of it. So steam power holders can only cash-out gradually.

1/104

traderman

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The steem power is locked for 2 years and you can only cash out 1/10th per week. At least that is my understand of it. So steam power holders can only cash-out gradually.

albert11

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Quote from: smooth on July 13, 2016, 07:03:54 PM

Quote from: albert11 on July 13, 2016, 06:36:37 PM

Hyperinflation doesn't make the price of the currency go up, how can prices double due to hyperinflation? Hyperinflation make the price of a currency go down.

Price of currency goes down means prices of good and services you would buy with the currency go up.

Now go back and reread my earlier replies (and others' ) which explain how Steem Power is protected from the effects of Steem inflation.

High Steem inflation serves a purpose, which is to encourage vesting so people have a long-term incentive to protect their own reputation and the well being of the platform as a whole. Inflation without vesting (and the associated inflation-protection) would be, well, just inflation. Vesting without high inflation or some other incentive would be stupid. The two work together.

Hyperinflation has many purposes obviously, the main one is the ability to reward users just for posting without recourse to advertisement.
My point though is not what is the purpose of it, but can 100% inflation be sustainable in the long run.

On a side note, im not sure everyone ask me to go back and reread their posts, if anyone had actually answered my question i wouldn't be here anymore. I certainely did not read any compelling explanation so here is the question again

how holding powered steem would protect you from hyperinflation ?

smooth

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Quote from: albert11 on July 13, 2016, 06:36:37 PM

Hyperinflation doesn't make the price of the currency go up, how can prices double due to hyperinflation? Hyperinflation make the price of a currency go down.

Price of currency goes down means prices of good and services you would buy with the currency go up.

Now go back and reread my earlier replies (and others' ) which explain how Steem Power is protected from the effects of Steem inflation.

High Steem inflation serves a purpose, which is to encourage vesting so people have a long-term incentive to protect their own reputation and the well being of the platform as a whole. Inflation without vesting (and the associated inflation-protection) would be, well, just inflation. Vesting without high inflation or some other incentive would be stupid. The two work together.

albert11

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Quote from: smooth on July 13, 2016, 05:57:47 PM

Quote from: albert11 on July 13, 2016, 05:19:36 PM

Quote from: smooth on July 13, 2016, 05:09:20 PM

Quote from: albert11 on July 13, 2016, 05:07:47 PM

Quote from: chryspano on July 13, 2016, 05:00:29 PM

Quote from: albert11 on July 13, 2016, 04:56:47 PM

steem token holder are not relevant here because they aren't really the one causing the hyperinflation

Who said anything about "who is causing the inflation"? you asked a question and you got the answer!

Next question please!

Yes inflation is the topic not sure about your question tho

No one including you has been able to answer my initial question which is why im still here

Explain how holding powered steem would protect you from hyperinflation ?

It was answered. In the example there is a 30% increase in the money supply yet you received an 80% increase in your holdings. You more than made up for lost purchasing power. Yes there is hyperinflation but you are not harmed by it, unless the mere fact of nominal hyperinflation bothers you as a religious conviction. Shrug.

The example does not reflect how the steem system works. Steem money supply increase by 100% per year . How do you come up with 30%?

It was 30% in the example given. That's how I came up with 30%. Let's make a new example:

You have 10 coins, I have 10 coins.

Over a hypothetical year, the system creates 2 coins to pay for something. The system also creates 18 more coins to give to you as antidilution (or alternately, inflation protection). The money supply has now doubled (100% inflation, just like Steem). Prices have on average doubled due to this hyperinflation.

You now have 28 coins. Meaning almost 3x what you had before. Even though prices have doubled, you are better off.

The loser here is me, I had 10 coins before and I have 10 coins now, so my purchasing power has been cut in half.

Hyperinflation doesn't make the price of the currency go up, how can prices double due to hyperinflation? Hyperinflation make the price of a currency go down.

Creating more steem to compensate for a steem price decrease is basically trying to solve a problem ( how to compensate steem power holders) with what created the problem in the first place.( inflation).

What happens when the price of steem goes back up? what do we do with all the steem that have been injected?

Today 90% of the steem that are created are paying steem power holder eventhough the price didn't drop, so it doesn't matter if the price rise or not new steem are entering the system at a very fast rate, which means your steem power are worth less and less everyday although you don't yet realize it , exactly like a ponzi scheme.

stan26

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Topic: Steemit how can this thing be workable long term? - page 39. (Read 32368 times)