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RE: Steem @ $1.07 - Plumbing The Depths of $1 Support At Bittrex Today
Just to clarify, I am not advocating for spam. I Agree with sherlock's work, as well as cheetah and steemcleaners. They all do a community service. I was playing a bit of devil's advocate.
I also think Steemit is superior to Bitcoin, technologically, so I would not advocate for taking up Bitcoin-style changes.
We're more in agreement than you think.
IDK if Steemit is superior to Bitcoin technologically, because I lack knowledge about blockchain and other things, but having an inflationary currency is an inferiority.
An immutable blockchain is a bad thing, it compromises efficiency and privacy.
IDK why carry the burden of the past forever, and this is aimed against both Bitcoin and Steemit's spam, and also against many things which most do not consider spam, but I do.
In a pure cryptocurrency case it is clearer to me why immutability is a flaw, in a social network with content it is more complicated.
I am also against proof of work, so if I had to design a cryptocurrency, it would vary from Bitcoin in more than one aspect.
Do you know if and where there is a list of all the consistency and security mechanisms/algorithms like PoW and PoS? I saw others being mentioned too.
Burst uses a new one, called Proof of Capacity. There's also variants of PoS like delegated PoS. Not sure if there's a list anyhwere, you may need to Google.
The immutable block-chain can still be anonymous, it just isn't really with Bitcoin.
Steem has a faster, lower-fee block-chain, which requires a lot less energy to run. That's mostly what I meant by superior.
Steem's block-chain is not really lower-fee, It is just more collectivist by financing costs with inflation.
In BitCoin, a buyer and a seller have to pay for their own. In Steem everyone pays for each buyer or seller.
Regarding less energy to run, will it not increase in the future?
This is top-notch!
You do realize Bitcoin is still inflating, right? And with Bitcoin Cash surging, Bitcoin original may not survive to become a "fixed" currency.
Inflation isn't always all bad, and Steem's dwindles over time. Nobody will take loans in a deflationary currency.
Energy costs for Steem witnesses will increase, but it's nothing compared to what kinda power Bitcoin uses up hashing.
Bitcoin is still slightly inflating, but with Bitcoin you know the rate of inflation declines exponentially, and more than exponentially, because it will get to a 0.
With Steem you have a constant rate of inflation.
Totally different than Bitcoin. Similar only for the short term.
What is good about inflation?
Steem's inflation doesn't dwindle over time, Bitcoin's does.
Why is it so important that people will take loans?
So important that it is worth devaluing other people's rewards for effort or talent?
Functioning economic systems have loans, and you can't take loans in deflationary currencies. That's all I'm saying, there's room for both.
Steem has to be inflationary to create rewards with (less) opportunity cost. If it were fixed, it would become zero sum.
My understanding is inflation is 9.5% -> 9% -> 8.5% etc. each year until .5%. That's pretty low.
Inflationary currencies are zero sum as well, adjusted to inflation.
Supposing Steem's model of inflation is how you described it, after its first 5 years it would be devalued by 50.3%.
If the count starts from this year (2nd year), 5 years from now it will still be devalued by 46.9%, which is still atrocious.
More importantly, Steem will reach 0 before its creation rate reaches 0.5%.
Regarding loans, lenders will not agree to lend money without an interest higher than the rate of inflation, so what did inflation gain?
You seem to have fallen too hard for the bankers' propaganda.
"You seem to have fallen too hard for the bankers' propaganda."
You make a lot of assumptions about me. I just happen to understand how currencies work, and I pointed out one reason why inflation isn't always bad. In the current market paradigm, it's hard to run any country with a deflationary currency because the populace has come to demand entitlements that can't be paid for without seigniorage and inflating debt.
FYI, I'm not endorsing it, and I consider inflation stealth theft from those unable or unwilling to avoid it, and those that don't understand it. One of the main reasons I love crypto is open-source and transparent distribution models.
As for Steem, yes, it is inflating. Any bet on Steem price is a bet that it will gain more value from network effect than it loses from inflation. I happen to think that's a good bet in the short/medium term, particularly if one is actively using the stake they have on the platform.
This is truly remarkable.
I think the blockchains need to be designed to be immutable with the exception of allowing them to be split. As long as there are periodic checkpoints within them which hold the current state of the blockchain, there would be no burden of re-indexing it all frequently, which is currently a big challenge for the Steem blockchain. With correct design, the tail(s) can be archived and validated separately and needn't really be a burden. A social media site doesn't suit this approach quite so well because people want to see the older content, so that content should really be in a separate data-store instead of being integral to the blockchain. There's also a governance issue, that this would address.
I hope to write more about this in a post soon.
This is sensational.