Steemit how can this thing be workable long term?

[jwinterm]

Yea, since Larimer and company instamined 60, 70, 80+%, I'm sure everyone will want to do their part to make Larimer rich and soak up a few pennies in the process, which they'll be able to withdraw over the course of two years or so. If it didn't work with Bitcoin and voat, why would it work with some instamined scam token?

We have secured ~80% of the initial STEEM via mining.  Our plan is to keep 20%, sell 20% to raise money, and give away 40% to attract users / referrers.

40% of it will be given to users. Notice it doesn't cost anything to register an account and you get (I think) $20 worth of tokens for doing so.

20% was necessary to fund development. Programs don't code themselves. Time is money. If the developers were not going to get paid, then it makes sense for them to do something else... like get a job.

Only keeping 20% of your company from the get go is a pretty low amount of equity to keep for a start up. Especially considering it is probably split in between at least a few people.

Except there's nothing from preventing them from posting early on and soaking up the huge first distribution under the guise of "paying content providers". It's marketed as being decentralized - it's not, and there's no way to tell how many coins or vests or dollars out whatever other convoluted tokens are being held by the company that backs it. If you want to run a company, why do you need to pretend that there was a "fair mining launch with no instamine" and that is distributed? My two guesses would be duping suckers and tax avoidance/fraud.

[albert11]

The concept is great but the economics behind it are flawed. People will be in for a disapointment when they realize that the more users use steemit the less reward they are likely to get.

You don't even understand the economics judging from your posts and comments, lol. It is simple math and logic, yet you can't seem to comprehend it.

How about you just answer my questions instead of ignoring them and trying to derail thread

Explain how holding powered steem would protect you from hyperinflation ?

[cryptohunter]

this coin is just another example of how simple it is to manipulate market cap when you hold all the currency and sell it back and forth to yourself on a small exchange.

[chryspano]

The concept is great but the economics behind it are flawed. People will be in for a disapointment when they realize that the more users use steemit the less reward they are likely to get.

You don't even understand the economics judging from your posts and comments, lol. It is simple math and logic, yet you can't seem to comprehend it.

How about you just answer my questions instead of ignoring them and trying to derail thread

Explain how holding powered steem would protect you from hyperinflation ?

I think that Smooth answered your question but you either don't get it or you intentionally ignored it, anyway.

I will try to answer your question as simple and as best I can, don't get distracted about the differences between STEEM and STEEM POWER, in the end of the day there is about 10% inflation that pays bloggers and people who vote, as the number of people that use steemit and write blog/articles increases so does the value of STEEM's blochchain, so 10% of this more valuable blockchain will worth more, so people will continue to get rewarded aproperly.
 
It's reaaly not that different from what is happening with bitcoin with miners/difficulty/users in STEEM instead of miners we have blogers/posters/voters and instead of difficulty we have number of posts/blogs writen etc, finnaly users give value both in bitcoin and in STEEM and in STEEM userbase is EXPLODING!

[CoinHoarder]

The concept is great but the economics behind it are flawed. People will be in for a disapointment when they realize that the more users use steemit the less reward they are likely to get.

You don't even understand the economics judging from your posts and comments, lol. It is simple math and logic, yet you can't seem to comprehend it.

How about you just answer my questions instead of ignoring them and trying to derail thread

Explain how holding powered steem would protect you from hyperinflation ?

I think that Smooth answered your question but you either don't get it or you intentionally ignored it, anyway.

I have also answered his question three times already. He is just a troll or mentally challenged. Take your pick.

[BigSirko]

The concept is great but the economics behind it are flawed. People will be in for a disapointment when they realize that the more users use steemit the less reward they are likely to get.

You don't even understand the economics judging from your posts and comments, lol. It is simple math and logic, yet you can't seem to comprehend it.

How about you just answer my questions instead of ignoring them and trying to derail thread

Explain how holding powered steem would protect you from hyperinflation ?

I think that Smooth answered your question but you either don't get it or you intentionally ignored it, anyway.

I have also answered his question three times already. He is just a troll or mentally challenged. Take your pick.

Sounds like the Soviet Union.  Anyone who has evidence which runs contrary to wishes of the party, it's accusation of mental illness and then imprisonment at the mental asylum.   

[CoinHoarder]

Sounds like the Soviet Union.  Anyone who has evidence which runs contrary to wishes of the party, it's accusation of mental illness and then imprisonment at the mental asylum.  

Except you don't have any evidence. Anyone that knows anything about Steemit knows you are full of it. Feel free to spread FUD, but don't deny you are doing so.

Some arguments against Steem I get (everything has pros AND cons,) but the one you are pushing is as dumb as can be.

[chryspano]

@BigSirko If you still don't get it, probably you should run away from crypto asap

If you are just FUDing then you are doing a terible job.
https://steemit.com/steem/@chryspano/hitler-s-failed-plans-about-steem

[smooth]

Yea, since Larimer and company instamined 60, 70, 80+%, I'm sure everyone will want to do their part to make Larimer rich and soak up a few pennies in the process, which they'll be able to withdraw over the course of two years or so. If it didn't work with Bitcoin and voat, why would it work with some instamined scam token?

We have secured ~80% of the initial STEEM via mining.  Our plan is to keep 20%, sell 20% to raise money, and give away 40% to attract users / referrers.

40% of it will be given to users. Notice it doesn't cost anything to register an account and you get (I think) $20 worth of tokens for doing so.

20% was necessary to fund development. Programs don't code themselves. Time is money. If the developers were not going to get paid, then it makes sense for them to do something else... like get a job.

Only keeping 20% of your company from the get go is a pretty low amount of equity to keep for a start up. Especially considering it is probably split in between at least a few people.

Except there's nothing from preventing them from posting early on and soaking up the huge first distribution under the guise of "paying content providers". It's marketed as being decentralized - it's not, and there's no way to tell how many coins or vests or dollars out whatever other convoluted tokens are being held by the company that backs it. If you want to run a company, why do you need to pretend that there was a "fair mining launch with no instamine" and that is distributed? My two guesses would be duping suckers and tax avoidance/fraud.

The sneeky-mine coins went into the 'steemit' account. That huge account (I think that is around 60% currently, but it may be less as they are giving away coins to new user signups at a rapid pace given the high level of publicity) does not post, does not vote, and does not earn rewards. It just sits there transparently, slowly giving away a steady stream of coins to new user signups (and some exchange dumping to fund development, also plainly visible).

It is a very transparent blockchain, with no privacy features at all, and named accounts. That works in their favor in terms of developer transparency.

There is nothing in your post that explains how the effect of 100% inflation is offset for steem power holders

STEEM POWER is awarded 9 STEEM for every 1 STEEM that is printed, which offsets inflation for STEEM POWER stakeholders to approximately 11.11%.

so you are basically saying that inflation is offset by injecting more steem into the system ..oookayyyy

Inflation that is done by giving coins to someone else is not the same as inflation which gives coins to people who already own coins. The latter is more like a stock split and has no real effect on the value of your holdings. You might go from owning 1 STEEM worth $1 each to owning 10 STEEM worth $0.10 each (still worth $1 in total). Net result is little to no change in the value of your holding despite the high nominal inflation.

This doesn't make sense, if the steem are sellable on the market whether you  give it to people who already own steem or not is irrelevant, there will be more steem in circulation and those steem will hit the market at some point

Please research the concept of a stock split. Until you understand it you will likely be lost here.

BTW, Steem has an automatic 1-10 reverse split every 3 years which reverses the cumulative effect of the previous three years and prevents the individual token from becoming inconveniently small. If you think that ongoing stock splits are inflation, then the 1-10 reverse splits reverse the inflation right?

[albert11]

@smooth

I don't see how creating an extra 9 steem out of thin air to compensate for a dropping steem price does anything to solve hyperinflation, it actually makes it a lot worse.

[albert11]

The concept is great but the economics behind it are flawed. People will be in for a disapointment when they realize that the more users use steemit the less reward they are likely to get.

You don't even understand the economics judging from your posts and comments, lol. It is simple math and logic, yet you can't seem to comprehend it.

How about you just answer my questions instead of ignoring them and trying to derail thread

Explain how holding powered steem would protect you from hyperinflation ?

I think that Smooth answered your question but you either don't get it or you intentionally ignored it, anyway.

I will try to answer your question as simple and as best I can, don't get distracted about the differences between STEEM and STEEM POWER, in the end of the day there is about 10% inflation that pays bloggers and people who vote, as the number of people that use steemit and write blog/articles increases so does the value of STEEM's blochchain, so 10% of this more valuable blockchain will worth more, so people will continue to get rewarded aproperly.
 
It's reaaly not that different from what is happening with bitcoin with miners/difficulty/users in STEEM instead of miners we have blogers/posters/voters and instead of difficulty we have number of posts/blogs writen etc, finnaly users give value both in bitcoin and in STEEM and in STEEM userbase is EXPLODING!

The blockchain won't be valuable long term when everyone is cashing out their steem, its value will plummet.

I don't think you fully grasp the implication of 100% yearly inflation, you mention 10% inflation but it's not 10% because you have to pay the increasing numbers of steem power holders which is 90% more steem every year.

Bitcoin inflation rate is 4% incomparable to the 100% of steem.

[chryspano]

@smooth

I don't see how creating an extra 9 steem out of thin air to compensate for a dropping steem price does anything to solve hyperinflation, it actually makes it a lot worse.

An example with a testCoin, you have 10 testCoins smooth has 10 testCoins.

Every year 10 more new testcoins are created, you recieve 9 of them, smooth recieves none and 1 testCoin is used to pay for various jobs/works (my numbers might be a bit wrong but you get the idea)

If the price falls 50% because of this inflation you are barely affected because you recieved 9 more coins.

[chryspano]

...

You have just earned a place in the Hall of Fame!

https://bitsharestalk.org/index.php/topic,22823.0.html

[albert11]

@smooth

I don't see how creating an extra 9 steem out of thin air to compensate for a dropping steem price does anything to solve hyperinflation, it actually makes it a lot worse.

An example with a testCoin, you have 10 testCoins smooth has 10 testCoins.

Every year 10 more new testcoins are created, you recieve 9 of them, smooth recieves none and 1 testCoin is used to pay for various jobs/works (my numbers might be a bit wrong but you get the idea)

If the price falls 50% because of this inflation you are barely affected because you recieved 9 more coins.

Which in turn will cause the value to drop even more. That's what happens when you keep injected more coins it makes the coins of everybody else worth less.

[smooth]

@smooth

I don't see how creating an extra 9 steem out of thin air to compensate for a dropping steem price does anything to solve hyperinflation, it actually makes it a lot worse.

An example with a testCoin, you have 10 testCoins smooth has 10 testCoins.

Every year 10 more new testcoins are created, you recieve 9 of them, smooth recieves none and 1 testCoin is used to pay for various jobs/works (my numbers might be a bit wrong but you get the idea)

If the price falls 50% because of this inflation you are barely affected because you recieved 9 more coins.

Which in turn will cause the value to drop even more. That's what happens when you keep injected more coins it makes the coins of everybody else worth less.

His example was correct. The price will not drop even more. In fact 50% is overstating it. In his example the money supply has increased by 50%, meaning prices will drop by 33% all else being equal. You actually come out ahead with your 9 additional coins. You have not lost any purchasing power.

[albert11]

@smooth

I don't see how creating an extra 9 steem out of thin air to compensate for a dropping steem price does anything to solve hyperinflation, it actually makes it a lot worse.

An example with a testCoin, you have 10 testCoins smooth has 10 testCoins.

Every year 10 more new testcoins are created, you recieve 9 of them, smooth recieves none and 1 testCoin is used to pay for various jobs/works (my numbers might be a bit wrong but you get the idea)

If the price falls 50% because of this inflation you are barely affected because you recieved 9 more coins.

Which in turn will cause the value to drop even more. That's what happens when you keep injected more coins it makes the coins of everybody else worth less.

His example was correct. The price will not drop even more. In fact 50% is overstating it. In his example the money supply has increased by 50%, meaning prices will drop by 33% all else being equal. You actually come out ahead with your 9 additional coins. You have not lost any purchasing power.

Why in the example smooth receives none? AFAIK every steem power holders receives some steem proportionally to what they hold

[CoinHoarder]

@smooth

I don't see how creating an extra 9 steem out of thin air to compensate for a dropping steem price does anything to solve hyperinflation, it actually makes it a lot worse.

An example with a testCoin, you have 10 testCoins smooth has 10 testCoins.

Every year 10 more new testcoins are created, you recieve 9 of them, smooth recieves none and 1 testCoin is used to pay for various jobs/works (my numbers might be a bit wrong but you get the idea)

If the price falls 50% because of this inflation you are barely affected because you recieved 9 more coins.

Which in turn will cause the value to drop even more. That's what happens when you keep injected more coins it makes the coins of everybody else worth less.

His example was correct. The price will not drop even more. In fact 50% is overstating it. In his example the money supply has increased by 50%, meaning prices will drop by 33% all else being equal. You actually come out ahead with your 9 additional coins. You have not lost any purchasing power.

Why in the example smooth receives none? AFAIK every steem power holders receives some steem proportionally to what they hold

Smooth was the STEEM token holder in the example. You were the STEEM POWER token holder.

[chryspano]

Why in the example smooth receives none? AFAIK every steem power holders receives some steem proportionally to what they hold

Because smooth holds STEEM and you are the smartass that has powered up and holds STEEM POWER  

You don't even know this simple detail but you are feeling comfortable to make inacurate pompous statements...

[albert11]

@smooth

I don't see how creating an extra 9 steem out of thin air to compensate for a dropping steem price does anything to solve hyperinflation, it actually makes it a lot worse.

An example with a testCoin, you have 10 testCoins smooth has 10 testCoins.

Every year 10 more new testcoins are created, you recieve 9 of them, smooth recieves none and 1 testCoin is used to pay for various jobs/works (my numbers might be a bit wrong but you get the idea)

If the price falls 50% because of this inflation you are barely affected because you recieved 9 more coins.

Which in turn will cause the value to drop even more. That's what happens when you keep injected more coins it makes the coins of everybody else worth less.

His example was correct. The price will not drop even more. In fact 50% is overstating it. In his example the money supply has increased by 50%, meaning prices will drop by 33% all else being equal. You actually come out ahead with your 9 additional coins. You have not lost any purchasing power.

Why in the example smooth receives none? AFAIK every steem power holders receives some steem proportionally to what they hold

Smooth was the STEEM token holder in the example. You were the STEEM POWER token holder.

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

[albert11]

Why in the example smooth receives none? AFAIK every steem power holders receives some steem proportionally to what they hold

Because smooth holds STEEM and you are the smartass that has powered up and holds STEEM POWER  

You don't even know this simple detail but you are feeling comfortable to make inacurate pompous statements...

The example you gave was in response to what i said : "I don't see how creating an extra 9 steem out of thin air to compensate for a dropping steem price does anything to solve hyperinflation, it actually makes it a lot worse."

how are steem holders that have not powered up  any relevant in this discussion?