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RE: Ned's Making $700k+ Every Week: Is the Steem Power Interest Rate Too High?
Thanks so much! I keep using the word "interest" because I'm thinking in terms of X over time becomes X + Y at some rate (which also changes over time), but I see it's a more intricate dance than that.
I think I understand now that the dilution should drive the prices down a bit and bring things back to equilibrium. Thank you!
It's interest in the sense that quantity of STEEM you have increases over time in proportion to the amount you're holding. That does occur with both STEEM and SP... But it is not compound interest, which is what we normally think of, where at some point the interest accumulated is added to the principal.
Yeah, that's a great way to phrase it. Previously, I wasn't thinking in terms of VESTS which don't change, even though your Steem Power balance is going up.