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RE: If STEEM Reaches even 25% of Reddit's Market Valuation...
You should join our hangouts smooth!
And what do you mean by "unprotected inflation"? Do you mean that when almost all steem is tied up in sp, sp holders are diluted precisely because the market is considered too saturated and people need to be incentivized to keep some steem liquid?
Oh annd btw, you never answered the questions in the main post smooth ;)
Inquiring minds want to know.what your crystal ball says!
By "unprotected inflation" I mean the extent to which SP's share of the total supply is diluted by new supply. So if >90% is locked up the SP holders experience inflation with respect to their share of the total. If <90% is locked up, the SP gain what is effectively "interest" as you said earlier.
The maximum inflationary dilution that SP holders can experience (if >99% locked up) is about 10%.
All this talk of inflation distracts from the main point you made in your post which is that the total value can certainly increase dramatically. I don't really have an opinion on how likely that is. I will say that valuation of blockchain-based system is somewhat different from a centralized web-based system, even if the two do the same thing, since the latter derives largely from advertising (or in some cases direct revenue) and the former does not.