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RE: Crypto Currency Economics History - Part 1: Where Does the Money Come From?
Does this still mean that money is generated out of no where? May be the answer to Where Does the Money Come From? will be in part 2 or did I miss that in the post?
It is not generated out of nowhere, you have to have a huge Computyer network with protoicals everyone can agree upon
in Proof of work its genertaed from computational work
with Proof of Stake its just a consensus that everyone holding these coins for a certain amount of time gets to "Mint" new ones" and Steempower is like this but has voting hence Delegated Proof of Stake, or DPOS and in our system yes youc an justs ay its printed money out of thiun air but you can't just print it you need steempower so its consensus based INFLATION
The amount of steem and SBD is inflated yes they generate newones, WITNESSES do they Sign Blocks, but you cannot just say they print money out of thin air, it has to be AGREED upon and MARKETS buya nd sell it, THAT'S the big distinction people mist make, this is NOT paper and this is NOT a money printer its more like a CONTROLLED mopney Printing Press and it can go Faster the more Steempower you have, but there wil ONLY be a ceryain amount of steem priunted everyyear, right now its l8ike 8% or somethinga nd veeyryear it gfoies down here are the stats
banjoBOT - Today at 9:34 PM
so you see 8.6% inflation or 25.8 million steem tokens created and next year its 8.2% and then in 2020 its 7.8% inflation or 27.4 million new steem tokens created (at 2024 it finally starts going down from 28.4 million steem tokens in 2023 to then 28.4 in 2024 and then 28.1 in 2025 and then it just keeps going down but isnt it INTERESTING that we still have 6-7 years left of an INCREASING supply of steem until the NEW steem supply actually starts to go down ;) Let the good times roll
Well explained @ackza , love it...