Steemit how can this thing be workable long term?

[albert11]

They will have to "print" more and more steems to pay off all the new user's content, there will be new contents everyday and more users everyday.And on top of that they will have to print more steems to pay all the steem power users How can the currency retain its value in the long run? I understand the steem power system where funds are locked so they can't be sold but this is bandaid solution to  an hyper inflation system

Please enlighten me


EDIT: Summary

The question i asked is How does powering up steem protect  SP holders from hyperinflation?

The answers i got so far from most involved in the thread :  SP holders will be protected from hyperinflation by creating even more inflation ( not a joke thats actually how steem was designed )

Lots of biased comments too ( steem balance of every users is viewable assuming they have same username ) most of the trolls in this thread are heavily invested ( no surprise here)

If anyone, even the steem devs can answer some of the concerns i welcome them, i had no ulterior motives when starting this thread but the trolling is so strong that i lost my cool on some comments, however my opinion on steem is still the same, it is a great concept but i fail to see how it could work with such hyperinflation and no real incentives for people to buy steem.

[albert11]

Simple silly, when the STEEM price declines, so do the payouts!

basically the more users on the site the less reward for everyone, so how is any of this sustainable long term? it should be the exact opposite

[albert11]

In the long run, we are all dead, and nothing is sustainable, look at Reddit, LOL

Indeed, and steemit is an elaborate ponzi. Better get in and out before everyone else lol

[albert11]

If you really want an answer to your question, then find out:

What is Reddit "worth"?

Reddit doesn't pay its users, apples and oranges

[fartbags]

It is not sustainable. It is like a drug. You get all this money but the money will stop. Then no one will use it.

[bbc.reporter]

I think the creators of Steem beat everyone to the punch. Once the world realizes the profit they can make out of the site all hell will break loose. They will be flocking over there so keep quiet and don't say a word if you haven't accumulated your fair share of steem.

[DecentralizeEconomics]

Steem is a steeming pile of trash.  It is absolutely NOT sustainable long-term.  Who would have thought that a "project" by the infamous Larimer gang would be another pathetic, worthless, money grabbing scheme to ripoff the naive?  Just say NO to the Larimer trash and their anti-free speech Chinese communist backers!

[bbc.reporter]

It is not sustainable. It is like a drug. You get all this money but the money will stop. Then no one will use it.

Just like how the fiat system is not sustainable. But you don't see the potential here. The question is how high will it go and for how long? By saying "it is not sustainable" you already closed your imagination to the possibilities and have bias to want to see it fail.

[DecentralizeEconomics]

Just like how the fiat system is not sustainable. But you don't see the potential here. The question is how high will it go and for how long? By saying "it is not sustainable" you already closed your imagination to the possibilities and have bias to want to see it fail.

Nice try Larimers, but you're going to have to get up earlier in the day to try that one.

[Foerster]

How much inflation does Steem have and what is the inflation schedule (if there is any)?

[albert11]

Wow, you're correct!

Reddit is already worthless and irrelevant compared to STEEM because nobody in their right mind will ever use Reddit once they've tasted the sweet addicting crypto nectar that STEEM offers, so the math problems now becomes, what multiple of Reddit's value equals the sustainable STEEM price:


http://www.newsweek.com/investors-think-reddit-worth-500-million-269108

"Sweet Crypto Nectar" is, after all, the only reason why you and I and everyone are here talking now. And, yes, you are correct, "Sweet Crypto Nectar" is only available at STEEM or any of the coinmarketcap100, Reddit does not give its users any nectar of any sort, and is therefore, a dying business.

Welcome to the future where all businesses must adopt the power of the blockchain or go the way of the dinosaur, or Western Union, or Reddit, etc.

stop trying to derail the thread man, just answer my inital question lol  only blockchain with sound economics is the future

[albert11]

It is not sustainable. It is like a drug. You get all this money but the money will stop. Then no one will use it.

Just like how the fiat system is not sustainable.

You can't compare it with the fiat system which is only a few % inflation, steem is 100% inflation/year  ( supply double every year)

[bbc.reporter]

It is not sustainable. It is like a drug. You get all this money but the money will stop. Then no one will use it.

Just like how the fiat system is not sustainable.

You can't compare it with the fiat system which is only a few % inflation, steem is 100% inflation/year  ( supply double every year)

Where does it say that there is 100% inflation every year? I think you might be mistaken. Can you post the link?

[albert11]

It is not sustainable. It is like a drug. You get all this money but the money will stop. Then no one will use it.

Just like how the fiat system is not sustainable.

You can't compare it with the fiat system which is only a few % inflation, steem is 100% inflation/year  ( supply double every year)

Where does it say that there is 100% inflation every year? I think you might be mistaken. Can you post the link?

I can't seem to find original thread where i read about this but here is another one explaining it https://steemit.com/steem/@steemrollin/what-is-the-current-and-projected-supply-of-steem-over-time

[bones261]

And there goes the big dump.  

[CoinHoarder]

Where does it say that there is 100% inflation every year? I think you might be mistaken. Can you post the link?

STEEM inflates at 100% per year. That is why STEEM is not a long term investment. STEEM's main use is simply to transfer ownership from one long term investor to another. I consider STEEM's secondary use as being a liquid asset in the STEEM DOLLAR decentralized exchange.

STEEM which is "powered up" into STEEM POWER only inflates at approximately 11.11% per year. STEEM POWER gives someone more sway in content curation (up voting and down voting, a la Reddit).

For every 1 STEEM that is printed for contribution rewards, STEEM POWER stakeholders are credited with 9 STEEM.

That is a 9 to 1 ratio, hence approximately 11.11% inflation per year.

You ask how this is sustainable? I point to the fact that almost all cryptocurrencies are inflationary, but misleadingly advertise themselves as being deflationary. Take for instance Bitcoin... from the Steem whitepaper:

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).

Steem is inflating at approximately the same speed as Bitcoin did in the first 8 years of its life. However, I posit that Steem can grow much more quickly than Bitcoin considering society's love for social networking. Paying society to participate in a social network just throws more fuel on the fire. Consider the recent network trends as possible evidence of explosive growth: https://steemle.com/charts.php

Even my mom has registered for Steemit and is blogging, but I can not for the life of me get her to use Bitcoin or Litecoin (although she does hodl).

[bones261]

Welcome to the future where all businesses must adopt the power of the blockchain or go the way of the dinosaur, or Western Union, or Reddit, etc.

Dinosaurs were around for about 165 million years. Don't dis Sue. She's been around for much longer than Steem ever will.

(because many hot babes are broke and need the money that STEEM miners don't).

Not everyone in this space is a straight male or a lesbian who would even care about broke hot female babes. You should diversify your sales tactics.

[albert11]

STEEM which is "powered up" into STEEM POWER only inflates at approximately 11.11% per year. STEEM POWER gives someone more sway in content curation (up voting and down voting, a la Reddit).

For every 1 STEEM that is printed for contribution rewards, STEEM POWER stakeholders are credited with 9 STEEM.

This doesn't make sense. How can you credit more steem than miners produce?

[CoinHoarder]

STEEM which is "powered up" into STEEM POWER only inflates at approximately 11.11% per year. STEEM POWER gives someone more sway in content curation (up voting and down voting, a la Reddit).

For every 1 STEEM that is printed for contribution rewards, STEEM POWER stakeholders are credited with 9 STEEM.

This doesn't make sense. How can you credit more steem than miners produce?

STEEM is autonomously printed to cover contribution rewards, steem power rewards, and SMD operations. Miners are paid out of the same pool of money as content contributors, curation contributors, etc.

These rewards combined amount to approximately 11.11% inflation per year. (the exact amount of inflation fluctuates depending on many different factors)

Here is how the 11.11% is divided up:

Contribution Rewards:
- Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
- Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
- Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater
- POW inclusion rewards before block 864,000: 1 STEEM per block (awarded as 21 STEEM per round)
- POW inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded as 1 STEEM per round) or 0.750% per year, whichever is greater.
- Liquidity rewards: 1 STEEM per block (awarded as 1200 STEEM per hour) or 0.750% per year, whichever is greater

Power Rewards:
- Steem Power rewards: For each STEEM created by the above rewards, 9 STEEM are divided among all Steem Power holders.

SMD operations:
- SMD rewards: A percentage of SMD value is created at an APR set by the witnesses and paid to SMD holders as SMD
- Feed Rate following: The amount of STEEM for which the total SMD in existence can be redeemed will change based on changes in the price feed. This change is effectively destruction ("burning") of STEEM when the value of STEEM (as measured by the feed) is increasing, or creation of STEEM when the value of STEEM (as measured by the feed) is declining.

I would also like to point out that although STEEM POWER stakeholders are debased by approximately 11.11% per year, they also have the ability to work for (or contribute and earn) a portion of the inflation for the contribution rewards. It is possible to reduce or negate the inflation by simply participating in the ecosystem. Also, when the value of STEEM rises it reduces or negates the effects of inflation as well.

[albert11]

STEEM which is "powered up" into STEEM POWER only inflates at approximately 11.11% per year. STEEM POWER gives someone more sway in content curation (up voting and down voting, a la Reddit).

For every 1 STEEM that is printed for contribution rewards, STEEM POWER stakeholders are credited with 9 STEEM.

This doesn't make sense. How can you credit more steem than miners produce?

STEEM is autonomously printed to cover contribution rewards, steem power rewards, and SMD operations. Miners are paid out of the same pool of money as content contributors, curation contributors, etc.

These rewards combined amount to approximately 11.11% inflation per year. (the exact amount of inflation fluctuates depending on many different factors)

Here is how the 11.11% is divided up:

Contribution Rewards:
- Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
- Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater
- Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater
- POW inclusion rewards before block 864,000: 1 STEEM per block (awarded as 21 STEEM per round)
- POW inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded as 1 STEEM per round) or 0.750% per year, whichever is greater.
- Liquidity rewards: 1 STEEM per block (awarded as 1200 STEEM per hour) or 0.750% per year, whichever is greater

Power Rewards:
- Steem Power rewards: For each STEEM created by the above rewards, 9 STEEM are divided among all Steem Power holders.

SMD operations:
- SMD rewards: A percentage of SMD value is created at an APR set by the witnesses and paid to SMD holders as SMD
- Feed Rate following: The amount of STEEM for which the total SMD in existence can be redeemed will change based on changes in the price feed. This change is effectively destruction ("burning") of STEEM when the value of STEEM (as measured by the feed) is increasing, or creation of STEEM when the value of STEEM (as measured by the feed) is declining.

I would also like to point out that although STEEM POWER stakeholders are debased by approximately 11.11% per year, they also have the ability to work for (or contribute and earn) a portion of the inflation for the contribution rewards. It is possible to reduce or negate the inflation by simply participating in the ecosystem. Also, when the value of STEEM rises it reduces or negates the effects of inflation as well.

Im not sure i understand this, where does those 9 steem come from and why are they now divided ,i thought you said they were added?