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RE: Steem - An Honest Look Inside
The biggest reasons we are dropping is the high inflation rate (relative to other projects) combined with the programmatic selling by steemit,inc. Until they stop selling so aggressively, we likely keep going down. It was fine when we had tons of demand, but those days are long gone. They need to fund operations with money from advertisements etc or steem and steemit are doomed.
I think inflation is the highest mistake. With SBD being the cause of it..
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Well, if sbd weren't being paid out, it would be steem. The inflation rate includes the SBD emissions. Though if all payouts were in SP i guess that may slow the selling slightly...
We need an overall reduction in inflation as well as steemit,inc selling. Them stopping selling might be enough to slow things down but I have no idea what their finances look like.
Ideally they fund everything from revenue from steemit.com... if at all possible.
When prices where high there were a lot of SBD printed. Then the prices went down really fast and all that SBD was printed in Steem causing the inflation to be much higher than the expected 9%.
I still think that SBD is the problem when prices come to a high level to a down level.
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