Topic: There is a flaw in steemit but everyone is silent about it. (Read 1521 times)

Your reaction is very odd. My account on steemit is https://steemit.com/@snowflake.

My question must have hit a nerve somewhere, no wonder why..The only valid answer to this question is that earnings are growing faster than the SP you can get out ( which is exactly my point) But you are in denial, you have a condition called cognitive dissonance, you don't want to hear that steemit is flawed because you have already convinced yourself that it's not.

steemit has always been flawed from the start, I guess people kept quiet because they were making money from it - for a while, before everyone joined the wagon and no one could make decent money anymore.

Maybe it's time for you to create another newbie account and start another stupid thread from scratch.

I don`t have any issues with them, but I will never pass over ninja POW mining and the rate of 95% of POW coins were redistributed

I am mining steem with one CPU, and like the platform, but come on ppl could the POW be longer with at least 30-50% and not POS being 98%???

Whats is worst those POW where mined with few CPU farms and few ppl hold most

The power down is included in my calculation.

Someone who has 17000 SP will earn 700 per week minus the 160 that he powered down which means is balance will increase by 540 Steem power every week.

Someone who earn 16840 steem power will earn slightly less interest but I don’t see how this is relevant because he will also be able to cash out less steem.

Take for example someone who has 1700 SP . He will earn 70 steem per week and will be able to cash out 16 steem so his steem power will grow regardless.

The number of steem power someone have doesn't change the fact that the steem power balance is growing perpetualy even when cashing out every week.

There is a contradiction in your post. You said

"from the moment you power down your earnings per day become less and less after each week"
"each subsequent power down, powers down MORE SP than the previous one"

If your earnings per day decreases how can the amount of Steem power that you cash out increase?

This is true ONLY if the hodler of the 17000 SP doesn't power down at all, from the moment you power down your earnings per day become less and less after each week, because you have less SP now, do you really expect someone who has 16840 SP to earn the same "interest" as someone who still has 17000 SP?

Also, as I already told you, each subsequent power down, powers down MORE SP than the previous one. I tried it and I know it. I suppose some earned interest is added to your power down amount as the time passes.
 

HOW? 

I just demonstrated above that even when inflation is back to normal ( 100%) that people's Steem power will still increase when cashing out every week.

Please show me your math

@snowflake43

Every week you are powering down even more STEEM than the previous week.

ALSO the amount of SP you gain from "interest"/"inflation"/"whatever" becomes lower and lower week after week. In the end of your 104th power down you will end up with ZERO STEEM and earnings, PERIOD.

@bitcoinjesus2.0, the rate of inflation will be 3 times lower , even at this rate people’s steem power will keep growing regardless if they cash out every week or not.

Someone who have 17000 steem power earn about 100 steem every day, that’s 700 per week
That sam person will be able to cash out 160 steem every week.
That’s with the current settings.

Now assume that the rate of inflation is 3 times lower then you have to divide 700 by 3 which is 233.

So as you can see even with the planned inflation rate of 100% in the future ( 3 times lower than now) , your steem power will give you 233 every week but you will only be able to cash out 160 so your balance will keep on growing.

Regarding your second question, yes I mean the rate of steem power being converted back to steem.

The fact that one user powered down is irrelevant, what you need to understand is that everyone’s steem power balance is growing every passing day and so every week everyone can power down more steem than the previous week, this creates a system where the ressources to kill the price of steem keeps increasing.That’s the reason why steem badly needs a mechanism to disincentivize people to cash out by rewarding those who stay in the system and by punishing those who don’t. Punishing is actually the wrong word here because its normal that the balance of people who cash out go down , what is not normal is the current system where  people can cash out to infinity.

Oh here is another one. Thanks for the warning. I have read something like this also from here but I dont see it now. Is that you also?
You are doing a good job saving some people. I hope your efforts will not be in vain.

I always figured people from Steemit being quiet had something to do with the fact that they are unable to withdraw the money they made from shitposting unless more people sign up and post or pay or something like that.

lol exactly. Many are afraid driving on bus with people in hijab just become soem "fanatical Muslims" decided to blow themselves from time to time. After all this media I am not sure how can be some people that takes fanatical religionists as good people.

About Steemit. It is just badly planed. But so far looks good. Well they had good start. Maybe they still flow on that good start and will slowly sink.  And STEEM price is still way to high. it decreased only 5 times so far with will at least 10 times more. At some point it will stop.

The event every 3 years is not a deflation event it's a reverse stock split, this changes nothing on how the system works or inflation rate, people would still be incentivized to sell and the price will still go down.  

I never complained about 10% annual inflation. I actually said that inflation is not even the issue. Maybe read my post next time?

The important metric is not inflation as those coins are locked anyway, it is the rate of SP going out. This rate is constantly increasing.

@bitcoinjesus2.0

The price of steem represents the value of the company.
As demonstrated above the price of steem will always go down so your stake in the company will always lose value.

>The greater percentage stake I own in the company, the more of the daily payout I can get by voting for myself.

Your point would be valid if the price of steem was growing faster than the dilution from new people coming in. You would need a miracle for that to happen.
Since the price of steem will always go down the amount you will earn by upvoting your post will always decrease


@bitcoinjesus2.0

Why does percentage stake matters to you? People care about how much their steem power is worth, they don't care about their percentage stake, your stake will decrease regardless in the future when new people come in.  If VEST were tradeable on the market it would be a different story but they are not.

The inflation is not really the problem, the problem is that there is no incentives to stay in the system. Inflation could be increased to 1000% if the incentives were right most people would still not cash out. People don't rush to cash out if they are guaranteed to be able to do it in the future at a good price. Bitcoin is a good example, so many people just holding for years because they know the price is solid.

The reason the price is going down is not inflation, it's because most people have realized that their steem power balance is unlimited, it will always be higher regardless of how many times you cash out and so the price of steem will always go down which means steemit can't grow which is why people have no confidence in its future.

The founders could reverse this negative feedback loop by cutting interest of power down balance but they don't , go figure...

Being a "fanatical Christian" does not make you a good person. In fact it is the opposite most of the time. Historically Christians have also done many atrocities with the crusades and the inquisition and many more that I do not know of. Today there are people who believe that Christian based religions want the ordinary people remain ignorant so that would be easier for them to control and manipulate them. Disclaimer, these are not my personal views but from the ones I have read on the internet. I personally do not care.

Anyway for my on topic question. Could there be a chance that the founders of Steemit have miscalculated how much inflation they should give their system? Because it is obvious that they did not expect this fall to happen in a very short time. I speculate their real aim for this experiment is to have a smooth and slow trend up for Steem.

I posted here because on steemit if you are not popular it's very hard to get any discussion going, it's kinda ironic that I went back to a forum that doesn't pay me for posting.

All the dick-holster jiggling here at Bitcointalk boys don't change HOW IT ACTUALLY WORKS.

Exactly. The system forces people to sell at a price they don't want. When I asked a whale why they cash out every week he said "because if I don't do it others will", it's a race to get as much money out before the price is completely supressed. The whales are not stupid they know that the system in it's current setting is totally unsustainable, that's why they are cashing out. It won't ever get better because there will always be new whales who will do the same thing.



As I said in OP, if you stop rewarding people when they power down and reward people who don't. then everyone that invested long term will not power down, only the quick rich type of people will want out. This will allow us to get rid more quickly of these people which we don't want and redistribute power quickly.
The main benefit of cutting interest rate of people powering down is to support the price of steem, without any incentives it's going to pennies soon, at that point people will lose interest because the pay outs are way smaller than they were used to.