You are viewing a single comment's thread from:
RE: Can Steem Engine go bankrupt?
I've seen the same effect. And you're right, If I were to sell all my PAL now I would drive the price down.
That is of course the normal effect of supply and demand. What is not normal is that in all these Steem Engine tokens more value is generated, expressed in Steem, than there is Steem added to system by buyers of those tokens.
Over time the difference between the generated values inside Steem Engine, expressed in Steem, and the actual Steem added to the system gets larger and larger. And I have no idea what the consequences will be if the difference gets really large (say 10 fold or 100 fold).
Ahh, I see what you're saying. For instance You buy 1000 PAL, then earn another 1000 on the platform. Where does the second 1000 get it's value? I think that as the total supply goes up the price should reflect this by going down to match. Of course it's mixed in with people buying and selling and burning so I think it should find a balance, at least that's how I think it works.
Yes, that is what I meant. As long as people keep buying, selling and burning it'll probably find an equilibrium like you say. But it could go wrong. Or that's what I think with my limited knowledge of economics and blockchain.
Posted using Partiko Android