Steemit how can this thing be workable long term?

[albert11]

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$ ?

but as a total all your money still have the same buying value as the year before. minus ofcourse the 100% - 90% difference.

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?

How does powering steem protect you from hyperinflation?    Maybe because you are the one confused...


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, you may think the opposite becuse your steem power balance is increasing but steem the currency is losing value everytime you and everyone else receive more steem.

You think that you are not affected by the  100% inflation because you are given more steem, and fail to understand that this means more steem into the system and that the only reason you don't see the negative effect of this yet is because people are hoarding but that won't last forever


 
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[albert11]

Nope, I'm broke,  but not ashamed.

I bought my STEEM domain before someone else does.

I can't wait to post about what I've been working on in my spare time.

What are you going to post about in the future when posting content nets you cash, and what name will you be posting under?

My name is Banano, and yes, I am poor (you can click on my wallet and see how much I have)

Don't try to derail topic, sneaky you.

The point is that nobody are holding STEEM dollar, and you are living proof

[chryspano]

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

[albert11]

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...

[chryspano]

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

[CoinHoarder]

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.

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).

[iamnotback]

That was a quickie. Did you score any smoochie pussycat on your 2 hour date?

[CoinHoarder]

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.

[iamnotback]

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.

[CoinHoarder]

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?

[iamnotback]

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.

[CoinHoarder]

Very well. Have a good night. Go get some sleep!

[smooth]

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

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.

[iamnotback]

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

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.

[smooth]

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

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.

[albert11]

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.

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.

[albert11]

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

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.

[CoinHoarder]

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.

[albert11]

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.

[albert11]

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?