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RE: Crucial Distinction Between Steemit (Platform) and STEEM (Cryptocurrency)
I mean 5 times more inflation that most strong fiat currency. And that inflated money goes to you, me and other stakeholders in the steem echo system...
Hey crypto-guru, I just wanted to comment that I disagree with the idea that 10% is 5 times the inflation of fiat. I understand where you got that, Canada and USA use something called CPI to measure inflation for their purposes and it reflects an annual inflation level of about 1%, but it excludes many household purchases, including mortgages.
There are other measures of inflation which try to focus more on normal househould purchases like fuel, housing, groceries, etc, and they can often have much higher inflationary figures.
In Canada we have something called SHS, the "Survey of Household Spending" which collects detailed information about household expenditures for consumer goods and services by conducting an interview. This system commonly produces an annual inflationary figure about 3%, but again it doesn't measure everything and there are still other metrics that can be applied.
So inflation can be much higher than we the goverment suggests, it depends how we measure, and what we exclude, and how we weight the various components of that measurement. And this issue matters because if inflation is actually greater than the government believes then that has reprocussions for the profitibility of our long term investments: example, if we buy a Government bond with 2% interest returns, but inflation is 3%+, we lose money on that investment.
Something to keep in mind.
If you want to know more you could read this article:
https://beta.theglobeandmail.com/report-on-business/economy/economy-lab/cpi-doesnt-fully-measure-household-inflation-and-it-wasnt-meant-to/article15551986/?ref=http://www.theglobeandmail.com&
I personally does not believe on paper currency in it's present form. The paper currency is designed to grow wealth of few people (maybe 0.0001% of world population). However, fiat currency (especially USD) is not controlled by government. Government is just the front end. It's controlled by few people who own the banking system (and who also control the Governments all over the world)...