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RE: CASHFLOW OR CAPITAL APPRECIATION? - WHAT IS THE TRUE VALUE OF STEEMPOWER?
Also, the inflation of any currency, be it fiat or crypto, needs to be justified by its demand. If there's no demand then on the long run, its value will be essentially worthless. Now, if we were to treat steem dollars as a "proxy" for fiat money, 10% rate of inflation seems extraordinarily high.
Inflation of the Euros and US dollars are below 5% per annum. If the number of active users stop to grow, it will definitely hurt people who are deeply invested in this platform.
Bitcoin's inflation rate was 30% to 50% before 2011. I think we are okay.
Future expectations for inflation are also critically important for a currency and everyone knew the disinflationary path that Bitcoin was coded for. I'm not sure we can say that as easily about Steem, can we?
U.S. Inflation averaged 1.9% over the past ten years. I don't think the Euro has been much different. 10% inflation per year causes your purchasing power to drop by half every 7 years, not good.