Steemit how can this thing be workable long term?

[albert11]

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

[albert11]

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.

[iamnotback]

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.

You have the definition of terms transposed. Debasement is the process of minting more coins which is equivalent to reducing the metal content of gold coins:

https://en.wikipedia.org/wiki/Debasement

Inflation is the process of the cost of goods due to changes in the price of the tokens.

Indeed demand can offset debasement with deflation, but when price turns down that is a bitch. Eventually you'll run out of new fools to give you their money to give away to those with high rep power.

[iamnotback]

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.

A lot of fools are willing to speculate on the price going up. The bubble has to run its course before see Steemit implode. You are wishful thinking if you think all investors prefer to blog than speculate. They may even do both.

[albert11]

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.

You are wishful thinking if you think all investors prefer to blog than speculate. They may even do both.

That's not what i meant to say, new users to steemit that never heard of crytpo before do not buy steem power, they just try to make a few bucks by writing.The majority of them at least.  I have no doubt that some crypto folks may speculate on the current rise

[iamnotback]

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.

You are wishful thinking if you think all investors prefer to blog than speculate. They may even do both.

That's not what i meant to say, new users to steemit that never heard of crytpo before do not buy steem power, they just try to make a few bucks by writing.The majority of them at least.  I have no doubt that some crypto folks may speculate on the current rise

Okay but his point was that the speculation demand will raise the price offsetting the minting of new coins (debasement). He is correct about that for as long as speculators want to buy more tokens risking their money on the bubble.

[chryspano]

Indeed demand can offset debasement, but when price turns down that is a bitch. Eventually you'll run out of new fools to give you their money to give away to those with high rep power.

Price of course can and will go down at times, but I can't see why price flactuations is a problem, now if you are talking about a catastrophic scenario, well this can happen anywhere and at anytime, not only in crypto.
btw I believe bitcoin is more prone to burn and crash in price(a catastrophic cripling scenario) than STEEM, with STEEM the average Joe is starting to use crypto, at least thats my impression.

[albert11]

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.

You are wishful thinking if you think all investors prefer to blog than speculate. They may even do both.

That's not what i meant to say, new users to steemit that never heard of crytpo before do not buy steem power, they just try to make a few bucks by writing.The majority of them at least.  I have no doubt that some crypto folks may speculate on the current rise

Okay but his point was that the speculation demand will raise the price offsetting the minting of new coins (debasement). He is correct about that for as long as speculators want to buy more tokens risking their money on the bubble.

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

[albert11]

Indeed demand can offset debasement, but when price turns down that is a bitch. Eventually you'll run out of new fools to give you their money to give away to those with high rep power.

Price of course can and will go down at times, but I can't see why price flactuations is a problem, now if you are talking about a catastrophic scenario, well this can happen anywhere and at anytime, not only in crypto.
btw I believe bitcoin is more prone to burn and crash in price(a catastrophic cripling scenario) than STEEM, with STEEM the average Joe is starting to use crypto, at least thats my impression.

It is simply supply and demand  logic.  The supply will always be way more important than demand at some point the thing will crash, thats what hyperinflation does. There is hardly any incentives for users to buy steem other thn speculative ones, people don't really care to have some voting power, most will certainely not pay just for it, the power of steem is to be able to earn free money and that create a lot of sell pressure

There are many ways in which steem could solve the inflation problem but the current system is not it and will have to be re thought or element added

[jwinterm]

...
btw I believe bitcoin is more prone to burn and crash in price(a catastrophic cripling scenario) than STEEM, with STEEM the average Joe is starting to use crypto, at least thats my impression.

lololol

Maybe you should put together a 200-page dissertation on this meditation and post it to steem(ing pile of shit). I'm sure you'll be rolling in the steem dollars and widely regarded as a gentleman and a scholar.

[chryspano]

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 10% 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.

[chryspano]

...
btw I believe bitcoin is more prone to burn and crash in price(a catastrophic cripling scenario) than STEEM, with STEEM the average Joe is starting to use crypto, at least thats my impression.

lololol

Maybe you should put together a 200-page dissertation on this meditation and post it to steem(ing pile of shit). I'm sure you'll be rolling in the steem dollars and widely regarded as a gentleman and a scholar.

Instead of this I choose to place a picture in my profile, I find this more amusing! 

[smooth]

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.

That is not at all the purpose of the hyperinflation. Inflation for posting rewards is something like 2% per year. It might be a bit higher now, as some of the formulas were changed around, but it is a single digit percentage. The hyperinflation you talk about serves a completely different purpose, as I described above.

[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 10% 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$ ?

[albert11]

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.

Correct, but it does not change the fact that the STEEM Dollars protect you from STEEM hyperinflation.

This guy has not realized yet, that STEEM has 3 tokens:

STEEM
STEEM POWER
STEEM DOLLARS

all of which are completely different.

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.

This "game" you speak of just became more complex now that you have learned the purpose of STEEM DOLLARS (as a hedge).

You are correct that more and more and more people want to "game this system" as you say which is why the number of new STEEM users is growing exponentially.

what are the steem dollars backed by?

[albert11]

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.

That is not at all the purpose of the hyperinflation. Inflation for posting rewards is something like 2% per year. It might be a bit higher now, as some of the formulas were changed around, but it is a single digit percentage. The hyperinflation you talk about serves a completely different purpose, as I described above.

Seriously whats the point of the steem power sytem, why add 90% inflation to a currency just to create some voting /reputation power system, its ridiculous. There are other ways to incentives people to behave on a forum , hyperinflation will be harmful to everyone in the long run.

Not to mention that the inflation will probably result in them having to change their %, if there wasn't any inflation the price could make up for new users content rewards.

[albert11]

STEEM

So steem usd is backed by an hyper inflated currency.. nice...  you know what happened to the venezuelian right? basically you could end up with 1 billions steem that can't buy you a loaf of bread

[albert11]

Hyperinflation will not hurt STEEM DOLLAR holders one bit, which is what the majority of the users are.

This is a lie.  People can verify themselves, hardly anyone have steem dollar

[chryspano]

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$ ?

You are very confused and unfortunatly, biased, I will try another way.

The goverment of an economically healthy country(not zimpampue) decides to offer 90% interest rate to everyone that has his money locked in a bank account for two years and then inflates the food/goods and services prices by 100%.

more than 90% of the people deposit their money in banks and earn the interest rate. Next year, hyperinflation or not (or any other fancy word you choose) every banknote might have less value but as a total all your money still have the same buying value as the year before. minus ofcourse the 100% - 90% difference.

actually the fact that only 10% of the total bank notes were in circulation may make them offset the 100% rise in prices or even make them worth more(as is happening with STEEM right now), because of their low supply, finally a balance will be reached.

It may not make sense for a bank/goverment to do this but I think that in STEEM this puts some obstacles in whales to supress the price or f#ck the market as they see fit and also helps to move STEEM mostly in the hands of hodlers. If you hold liquid STEEM long term YOU ARE BURNED!!! unless of course demand is more than supply and even the liquid "inflationary" steem rises in price.

 

[albert11]

STEEM

Everyone has STEEM DOLLARS:

However you don't https://steemit.com/@banano 

STEEM DOLLARS
Tokens worth about $1.00 of Steem.
$0.000

lol