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RE: Steemit Cease Fire: One Week Without Dumping Every Single Steem Token You Power Down?
Keeping Steem in the system is irrelevant to its price. As long as we continue printing Steem, its price will continue falling (the increasing price of Bitcoin doesn't help either).
Yesterday, I've outlined the reasons behind the falling price of Steem. It's a short article, which will explain a lot of what's going on at the moment and the currency's future: https://steemit.com/steem/@dek/summarized-explanation-for-the-falling-price-of-steem
Yeah, good post, I upped yesterday.
I think an initial inflation of creating currency, then advertising, then removing the inflationary aspect and letting the advertising and other aspects, or some different type of pool mechanism, to pay for post content in some capacity. The tip option that mirrors real free market exchange is going to be the way for people to generate income based on people tipping them for their valuable content. The pool and this inflation mechanism needs to be removed long term.
The community needs to understand more about how free market reality works and try to get Steemit to align itself more with that reality. I don't see investing as worthwhile until this is confirmed to be something that will be changed. Otherwise, the price will just keep going down since why would anyone buy the cryptocoin when more and more of it just comes out... I hope to see real exchange from the community to take place and override the pool feature in the long term.
Advertising is a good place to start. I don't know what else can be done... but constant inflation forever... just does not add up as a successful enterprise. Maybe at least peg the "printing" of the currency to the amount of posts made, or upvotes cast, or something that is reflective of the a reality in the community, as a national currency is supposed to work as well. Then it would fluctuate as a representation of activity, usability and popularity of the platform, and then reflect an increase in popularity of the currency.
I am no economic expert, but I don't think the current system is inherently flawed. It actually seems quite well designed to me. It absolutely strongly favors the holding of SP as intended.
I think the problem is how we seem to instantly think in terms of monetary value, viewing steem as a currency, when the vesting system really sets it up more as shares of an enterprise. If a stock splits 3-1 it's not considered to have undergone 300% inflation. The climbing amount of steem is more akin to a continuous controlled stock split I feel. With a vast majority (I think the white paper says 90%, though I don't recall) of new steem being paid out to SP and SD holders, the inflation rate is drastically lower than it appears. SP basically has an insane interest rate that is counteracting the "inflation." The value of steem could actually fall forever, and as long as it did not exceed the rate of new steem produced, the market cap would remain unchanged, and that's the real value to watch.
Participation in the platform is what mitigates the the effects of the inflation as rewards are earned. Those who will be most negatively impacted by inflation will actually be the passive investors who simply buy steem but do not participate, as well as those with holdings in liquid steem.
Back to the stock analogy, no one is losing any value until they lock those losses in by selling. The vesting system really seems to be a far different beast than bitcoin, which functions much more akin to a true currency.