Why I think Steemit with be huge, and my concerns about inflation
I remember looking at steemit back a month ago, and didn't really understand it, I didn't stay long. Once steemit rose up, I started to notice people in my regular slack channels posting steemit links, and then I started to dive deeper.
I noticed how people were making money, and I learned it was through the blockchain instead of tipping people. I was amazed actually.
I stayed up all night, and decided to go in deep into steemit, I bought a bunch of steem, and waited until the power up was re-enabled to power my steam up, since I learned about the interest I could make. 9 out of 10 steem goes to STEEM Power holders!!!!! :)
I think steem will only grow bigger, but I think 100% inflation seems very high. That's double the amount of coins every year. How can that be sustainable? Does that mean steemit needs to double it's user base, and money invested into STEEM every year?
I have high hopes for steemit, and will continue to be a user of this site, I'm already on here more than other sites. I would like to see the post quality increase though.
Please let me know what you think about the inflation, and how that seems to be not sustainable in the long term, too many coins!
yes, if userbase doubles each year, inflation is no problem at all. 10 years of doubling and then steemit will have to change some parameters.
That seems like an incredible amount of doubling to me though...
I think steemit should change some parameters sooner than later. I would be happier with less interest then have such high inflation.
just do the math
2 to 10th power is 1024
that is 10,000 users to 10 million users, in 10 years.
if steemit gets traction and can grow virally, then the problem would be that 10 million users is achieved far sooner than 10 years. In that case, we will see a proportionate price increase during the time it is ahead of the double per year pace, and then it will come back down to where it is now.
At least the fundamental value will do this, how the markets will react is a different issue.
Now keep in mind that having the price come back to 0.005 BTC in 10 years might sound like boring, but dont forget there is 1000x the STEEM. So with doubling every year, STEEM can maintain price, but the SP is what will store this compounding as the underlying vests stay much less changed.
Thanks for the reply.
I guess the question is, when should I power down? If steam gets to 1 billion market cap in the next year, I will probably power down to pay for rent next year, since I'm planning to study computer science.
powerdown to cashout 1% for required expenses, then cancel the powerdown after you get what you need. it forces a bit of financial planning, which is probably a good thing for most people. But most definitely dont power up any funds you cant do without as it will only come back 1% per week
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