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RE: Vlog #32: Today is Hard Fork day and it's not the first time I have trouble seeing what will happen.
It's possible to divide a cryptocurrency by many zero's after the decimal point. So 0.001 STEEM could be worth a dollar one day. Steem price needs to increase a lot of course for this to happen.
So for example: if the reward pool would be 500 STEEM per day (very little) but it's worth insane money a payout of 0.005 STEEM could still be decent.
If the Steemprice is still low 20 years from now we are in trouble :)
I like cryptocurrencies because, in general, they are deflationary, unlike fiat wich is inflationary (and why money in your bank account loses value every year).
I do get that 0.001 STEEM could be worth a dollar one day. And that would be amazing, right?! :)
But having a very low inflation rate would also mean users would have to have a huge amount of money invested in the platform (at this higher price). With almost getting no return on investment when creating content.
Why would I keep my investment in Steemit if other investments could pay a higher percentage in dividend? This also counts for a content creator.
Inflation in itself is not that bad. It's where the inflated money supply is going to that can be good or bad. In the case of Steemit, the money goes back to the best content creators.
I'm studying the concept of inflation at this moment and I am planning on doing some articles about it.
I'm still not convinced a near to zero inflation rate makes sense on a platform like Steemit. Or the money would have to come from somewhere else, for example advertisement or other creative ways to have the reward pool fill up.
But that would be a whole other debate.