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RE: Steem Hyperinflation

in #dilution8 years ago

Random question, since it sounds like you are speculating on the value of Steem as well... if you convert Steem to Steem Power, are you pretty much banking on Steem being around and prospering for the next 2 years? The hack from last week worries me of all the uncertainties that you just can't predict. And 2 years is almost an eternity in crypto land, anything can happen.

But the 5000% annual inflation is troublesome. It seems like if you have a LOT of SP your earned interest may help balance the inflation of Steem. But if you have a few hundred SP and it's stuck for 2 years while Steem is hyperinflating.... aren't you going to be at a loss if the price of Steem doesn't significantly go up?

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Great question. I'm not speculating the value of STEEM but want to see this whole project succeed as a platform. I have converted some Bitcoins to STEEM and it got trapped for a few days and that's when I start to notice its high dilution. I read the white paper and it's 0.19% per day however the actual rate is much higher. It certainly got my attention then.

I think the SP interests cover most of the inflation but since Steem value is ever dropping, it'll be profitable only when the increase in the quantity of steem > the price drop of steem.

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