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Steem Inflation : A Tool for Efficient Creation and Effective Redistribution of Wealth

in prameshtyagi •  5 months ago

alt

We have heard our elders saying " we could eat full stomach for 5 paisa when we were students which would be approximately 50-60 years before". And now we have to pay 500 Rupees to have decent food for one person. I myself could travel in bus from my village to the district center (27 Km) for 2 Rupee 30 years back which now costs 38 Rupees - a 19 times increase.

And this story is not only in India but all around the world - you hear same type of story whenever you happen to talk to elders of society or look back at your own life.

This is clear that the purchasing power of any fiat currency, issued by any government across world, has consistently gone down. And this decrease in purchasing power of fiat currencies is called inflation.

The question is - who makes them inflationary? and why do they do it?

The answer to first question is very simple - the governments of the day make them inflationary by printing more currency than required.

The answer to second question is bit lengthy. In society there are workers, managers, planners, leaders, preachers, and non-contributors. Except the non-contributors all other produce or help produce something of use for society. If only contributors were to be the consumers then, although inflation still will be needed - I will explain that later, but will be much lower. And this I call good inflation.

But non-contributors are also consumers. Either society has to provide them in the form of state grants or they will steal by whatever means. Now governments for whatever reason if start giving in too much to non-contributors either by choice or by compulsion then it is very easy to expect that inflation will rise much higher. And this I call bad inflation.

It is not difficult to relate that all poorly governed countries had, have, or will have in future bad inflation. Saudi Arabia is case, for will have in future, as it is a society of least contributors and most are living om grants from government. As the Oil demand in world collapses due to use of alternate and renewable energy -the Saudi’s will see hyperinflation. It is not something that has not happened in history. Many great economies have collapsed for this simple reason.

Another example is Reservation policy of India - by which hard earned resources by capable people are being spent on incapable and non productive people of society and at the same time opportunities are being deprived to capable people to contribute for the development of society. Please watch below video - how India exporting its talent to elsewhere

Let's move on from bad inflation discussion as it is not the main topic of discussion for this post. It is actually the good inflation that I am going to discuss and how Steem Inflation is good inflation. Tune in now to the article.

We now know that the value of the unit currency decreases while supply of currency increases with time due to inflation. Therefore, it is in the interest of all those who have their wealth in the said currency to grab (yes grab) more from additional supply of currency. And to grab more the participants have to take part in some activity which is linked to reward mechanism of the society. It is obvious that activities that innovate or help innovate are rewarded more than those that just cater to current needs. This help to create and redistribute the wealth in such a way that those who secure and improve the future of society will become wealthier than those who are just helping to meet current needs. Therefore, it is the activity, that you chose to engage in , that dictates whether you will become wealthier or poorer with time. Look at below image to get this point that shows how wealth of companies enraged in new tech increasing much faster than those involved in age old activity like OIL. In 2016 none of the company that dominated in 2001 is in Top 5.

Related image

So if you don't do anything then for sure you will become poorer with time irrespective of the size of your current wealth. And which activity you chose to participate in will dictate your relative growth of wealth over time.

In Bhagwat Gita - we have most famous teaching from Krishna. And that is:

कर्मण्येवाधिकारस्ते मा फलेषु कदाचन । मा कर्मफलहेतुर्भुर्मा ते संगोऽस्त्वकर्मणि ॥

In English its meaning is written below:

You have a right to perform your prescribed duty, but you are not entitled to the fruits of action. Never consider yourself to be the cause of the results of your activities, and never be attached to not doing your duty. - Bhagavad Gita, Chapter II, Verse 47

In the vedio below it is very nicely explained by Krishna to Arjuna:

 

The highlighted text above is very important. Don't engage in an activity expecting returns instead do something that makes you happy and satisfies your inner self.

And I am sure we all know how Nike uses the same concept

Image result for just do it sexy

How Steem Inflation Fits in all this and binds us all into it ??

It is this power of good inflation and selection of activity you chose to engage in, as explained above, that has been used in Steem blockchain to motivate users to contribute for the growth of Steem and so of the users - as we all collectively own Steem blockchain. The rewards of steem come from gradually decreasing inflation from 10%-0.95%. This reward pool is then distributed among those who do some activity on the blockchain as per below arrangement:

"Of the supply of new tokens created by the Steem blockchain every year, 75% of those tokens compose the “rewards pool” which are distributed to content creators and content curators. 15% are distributed to vested token holders, and 10% are distributed to Witnesses, the block producers cooperating inside Steem’s DPoS consensus protocol."

"75% rewards are distributed among content creators and curators in the ratio of 75% and 25% respectively"

Now YOU can decide which activities of Steem blockchain you are equipped/inclined/motivated to participate in. Accordingly you will earn rewards.

Activities Directly affect Your Rewards on Steem Blockchain

  1. If you are passive investor -then you earn 15%.
  2. If you are witness then you earn 10%.
  3. if you are curators then you get 25% of 75% reward pool
  4. If you are content creator then you earn 75% of 75% reward pool
Activities Indirectly affect Your Rewards on Steem Blockchain
  1. Develop apps on steem blockchain like dLive, SteemPress , busy.org etc,
  2. Promote steem blockchain like @jerrybanfield
  3. If you are investor bring investors from your network
  4. if you are author - get more authors to register
  5. If you are good at identifying good and original content then invite other curators
  6. Write motivating posts so that others become more active develop positive outlook
  7. If you know exchanges then get steem listed on new exchanges
  8. And be ready to launch your SMTs as soon as it is made possible on the blockchain
  9. Help police bad behaviour like @arcange who lists out any scammer on the blockchain by simply resteeming his posts
  10. Ask difficult and uncomfortable questions to those who are in leading position on the blockchain
My suggestions to new users
"Either invest money or invest time"
And remember anybody who invest money has actually invested his time somewhere and earned that money which is invested here. So if u can not invest money then be ready to invest your time in learning required skills to excel here. But please don’t complain about somebody is earning so and so. You too can if you care to.

Good Luck & All the Best

Happy Steeming

Read my best post so far my story of one year on steem and learnings

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I agree with this article...

Invest money or invest time. If you don't have money be ready to invest time.

Steemit is not an easy money grab like some of us thinks. I invested time to learn the basics, interact, chat, comment, make an article and invested some money. We need to start somewhere to get our feet. At the end of the day, we are all responsible for our own success. Great writing @prameshtyagi

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I know I quoted it again from my old post. But it is so relevant for us and for the post that I had to.

I thank u @hiroyamagishi

It took me some time to realise that inflation of steem is not leading to be a ponzee scheme but actually an age old mechanism that has been used in history to incentivise, induce, unite, compete, and motivate all stake holders to work effectively for a common cause.

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Investing time only won't actually work for new members. I know because Steemit was an experiment for me to actually see if it is possible to generate some Steem or SBD by not investing a single dollar.

As you probably know, things got a lot easier when I started using bots. I honestly think a minimal investment of at least $100 is required to have a nice start. The content quality will determine your earnings from there.

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But u can earn that 100 $ too although it will take longer

how come this post gets flagged? your post is quite informative. BTW i considered steemit or steem as my retirement fund, i don't care about the prices at all. All i know is im still keep posting until 2030 in steemit.

First look at the post: Pasteim Inflation: Efficient performances that are a tool description for the effective rearrangement of resources that everyone will love very much. We can see that we can eat a meal when we were such a student about 50 to 60 years ago, important things are discussed very well. In this way, a brief discussion comes in the way of talking about the world or looking back on its own life, in terms of social labor

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U need to work on your English to let others know what u want to say. Good luck.

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This comment has received a 0.29 % upvote from @booster thanks to: @isabella69.

this was motivating 😎

just help those in need

Great job! I am very optimistic on the future price of steem. I'm surprised more people don't invest money and or time. You can even make money doing autovoting. There are definitely a lot of opportunities.

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Yup. U are right. But slowly more people are coming

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And on a positive note the steem price did go up over 100% in April. Hopefully it can do the same in May.

Great Post. I enjoy reading it. Thanks for taking the time to post this.

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thnx. It took me half a day of writing but many days of thinking

I'm agree with you, now 20 USD nothing.

thank you for shiring @prameshtyagi
Growth is the best tool to curb poverty in developing countries. I believe that policies to promote economic growth actually boost GNP and do not help to alleviate poverty, so I think redistribution of wealth is the real key to containing the scourge of poverty.
Since the 1950s, development economists have emphasized that the increase in GNP does not necessarily mean an increase in social welfare rates. From an economic point of view, economic growth is a means and not an end, through which the real goals of poverty reduction and social progress can be achieved.

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Well my point is bit different - Incentives through Inflation need to be optimally directed so that people are motivated to contribute positively. If we just donate which induces lethargic behavior, like what is the need to work hard or intelligently if I get my basic needs fulfilled by donation, then we are doing more harm to those whom we donate as well as to entire society.

So wealth redistribution should be attached with an objective to promote positive and constructive behavior.

Good point

yes man you are right that a long time ago we didnt required money full of hand to have a decent meal,but now we are giving more money than we are getting to have a meal.time changed everything.

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This comment has received a 0.36 % upvote from @speedvoter thanks to: @cbeep.

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I agree with this article , new word grows by new money revolution

"Invest money or invest time" - that pretty much applies to everything in life, does it not?

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Yup but people keep forgetting so reminder is good

I really don't understand is this inflation or more peoples are gathering more money.😂

Add salary change for a better comparision

4E4213A3-1B07-4DC4-98BC-18714B675C0C.gifThanks for the useful info

@prameshtyagi You need to upvote good comments, never ever seen you doing that. Don't be so greedy and rude. Its good to contribute sometimes, ur anyways paying bots.

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I contribute as I see fit.

To listen to the audio version of this article click on the play image.

Brought to you by @tts. If you find it useful please consider upvote this reply.

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Good idea for comment😉 follow me on @imangwi

Ok, this post is so long, the writer is hard-working, I decide to praise him.

Thanks for the excellent informative post.

Wonderful tyagiji

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Thought of using my idle time dear..

You got a 23.56% upvote from @oceanwhale With 35+ Bonus Upvotes courtesy of @prameshtyagi! Delegate us Steem Power & get 100%daily rewards Payout! 20 SP, 50, 75, 100, 150, 200, 300, 500,1000 or Fill in any amount of SP Earn 1.25 SBD Per 1000 SP | Discord server

Your post is very nice It is very good to read carefully. Hopefully you will be with us on the best of luck

I like to see your good writing post & thanks a lot to share this content with us.

Inflation has always existed, but it is controlled, if it is not controlled, what happens in Venezuela where prices soar, purchasing power decreases and economic crisis enters.

your think is correct, day by day every product price is up, if product price is continue up trend one day people face big problem..

I liked the little story you wrote

Follow me sir thanks in advance

Congratulations, your post received 19.08% up vote form @spydo courtesy of @prameshtyagi! I hope, my gratitude will help you getting more visibility.
You can also earn by making delegation. Click here to delegate to @spydo and earn 95% daily reward payout! Follow this link to know more about delegation benefits.

You got a 24.44% upvote from @brupvoter courtesy of @prameshtyagi!

Welcome to Steem Community. As a gentle reminder, please keep your master password safe. The best practise is to use your private posting key to login to Steemit when posting; and the private active key for wallet related transactions.
About Steemit Just click Here: https://steemit.com/steemit/@abdurrazzak5621/what-is-dtube-and-steemit

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Anda sangat luar biasa, post Anda tiada tandingannya. Saya salut sama anda.


You are incredible, your post is unmatched. I salute you.

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Appreciate yr sincere admiration

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I am very sincere, saying that I am amazed at you

nice but thinking

I congratulate you, my friend, excellent explanation. The bad inflation that is occurring is happening in Venezuela, much money given away and little money for production, that is why we have hyperinflation at this moment. According to a report by the International Monetary Fund, inflation in Venezuela in 2018 will end at 13,864.6%. A true madness.
On the other hand, the approach that you make of steemit's good inflation is very interesting since it is observed that there are alternative forms of healthy inflation and search for the distribution of wealth. Governments and companies must walk towards these alternatives. Thanks for such good information ...

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I am happy to know you liked it. Let us work with Steem as that is what we all can do

You got a 20.40% upvote from @postpromoter courtesy of @prameshtyagi!

Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!

Oh my god! I love cryptocurrency , follow me on @imangwi and follow news about cryptocurrency

Follow Telegram: https://t.me/CryptoNewsinShorts

Get everyday cryptocurrency news and save your time

purchasing power of any fiat currency?

https://steemit.com/life/@rahiarven/4mcdnm-zack-knight-snap-official-music-video
Welcome to Steemit @prameshtyagi Let me know if you got any questions about Steem or anything related to it! The official FAQ can be found here and has A LOT of information https://steemit.com/faq.html - Also remember, Steemit is just ONE of the sites built that uses Steem the blockchain. We also have DTube - our very own Youtube, DSound for Soundcloud and Steepshot if you prefer Instagram like experience. I'd also like to mention ChainBB - forums, Busy - Steemit with more modern look basically, DMania for memes and Dlive for streaming just like in Twitch! You can also earn Steem by gaming now! Search for Steemgar if that's more your thing. Welcome to the blockchain! :)

https://steemit.com/life/@rahiarven/4mcdnm-zack-knight-snap-official-music-video
Welcome to Steemit @prameshtyagi Let me know if you got any questions about Steem or anything related to it! The official FAQ can be found here and has A LOT of information https://steemit.com/faq.html - Also remember, Steemit is just ONE of the sites built that uses Steem the blockchain. We also have DTube - our very own Youtube, DSound for Soundcloud and Steepshot if you prefer Instagram like experience. I'd also like to mention ChainBB - forums, Busy - Steemit with more modern look basically, DMania for memes and Dlive for streaming just like in Twitch! You can also earn Steem by gaming now! Search for Steemgar if that's more your thing. Welcome to the blockchain! :)

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Thank u. But why yr reputation is so low.

your talking is great,,inbest this pleart form there profit best

I breathe the inflation, I am from Venezuela a country with hyperinflation and it's terrible how the phenomenon destroys the society, everyday yo u are poorer. Steem is a really good option for those who want fight against the inflation earning a currency with power. Good post!

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You get it right. Invest as much as u can

Great post. Very informative... Thanks for sharing

Its really nice. Well writing. Its really cool and awesome. Thank you so much for sharing. Upvote and Resteem done.

yes boss,. you are right. i am agree with you

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Thank u bro

Thanks of lot for sharing your valuable post ❤

A good case of hyperinflation is ours, the Venezuelan case is breaking records. Take it as an example of what not to do.

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Common men is stake holder in governance so they have to choose right leaders and overthrow corrupt ones. Simple.

Realmente un gran articulo. Una realidad que muchos desconocen.

I am a newbie and i am ready to invest my time. What exactly do i need to keep doing when i am login on steemit?

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Read my post given as reference in the bottom

This is an interesting perspective, no doubt. My own view on the issue is perhaps colored by living in a country (Argentina) where inflation is running upwards of 30% per annum. As proof of which, the Banco Central is now paying 30% interest, and no banker ever pays you more than the rate of inflation.

This is happening for a complex variety of reasons, all of which revolve around the corruption of a neo-con government which regards being elected as a license to loot the national treasury. To keep it short, let me just observe that the first act of our current President was to immediately agree to pay the vulture funds every penny they asked for, without even trying to negotiate. Electricity & Gas prices have increased geometrically since he took office, by which I mean 1700% in some cases. Yes, I really said we are now paying 17 times more than before. But of course, the fact that the President's close friends control the gas and electric utilities is purely coincidence (cough cough).

I could go on and on, but this isn't the place. I'll write a blog post on the subject.

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Yup. That is unfortunate

For readers concerned about the mentioned issue of "inflation," I suggest a deep resource that will give new understanding: https://monetary-metals.com/?s=inflation

Inflation may be best understood as the "expansion of counterfeit credit." The point made by the writers and Monetary Metals is that we do not have a money system, we have an irredeemable credit system--one that requires (feature, not a bug) continued expansion of credit, also known as inflation.

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Nice one. And another way to look at it

It's either time or money, pick you poison...
QUCK QUESTION? When you say "be ready to launch your SMTs" as soon as it's made possible on the blockchain", are you referring to as soon as a you have created one, or as soon as it is possible to create one in general?

I love your post, very successful what you are saying, you are also transmitting information that must be taken into account to better understand this great community.

Great your post.

mahabharata, perfect steem post ,,,

Apple is sure one heck of a huge company indeed. Good post @prameshtyagi

Inflation is killing people everywhere because they just keep making money. If you dont have any but you need some the banks quick to get you some as adults we start our lives in debt whether you go to college or not. Since 1970 the cost of living has gone up like crazy while wages havent increased all too much. $100 in 1970 is right around $600 by todays standards it's crazy and people don't realize it.

if those who read this post are surprised, they should see the devaluation in venezuela, today an egg is worth 200 past tomorrow 400

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Right. Some are not getting this point

Wonderful tips, however how do you think we can get more people investing in Steem? I'm interested in this aspect of your post

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For that read the post for which I gave link at the bottom.

In any case - only way to convince them to tell them to be part of new economy and higher returns then available anywhere else.

Damn inflation, I had to wait so to get years to get a SNES in current monies that was almost 500 bucks if you got the system and a single game a single extra game.

Needless to say we were poor so it really made me happy.

Best Xmas ever though.

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What to say

the higher the dollar price from year to year @prameshtyagi

Tam yerinde bir tespit. Bu anlamlı yazı ve fotoğraf için teşekkürler ve başarılar

Very nice observations and motivations, I believe early adapters of steem like us would not worry on the future inflation because we are secured with steem...

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Yep !

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Yup as long as we work to maintain or better improve the prospects of Steem

Its really helpful man . Keep posting it

I just got my account approved today and this was very helpful. I agree with the article, it can be applied to many of the new platforms appearing thanks to the blockchain tech.

Good post... Thanks for sharing

your think is great

steemit valuation is underrated once it reaches to reasonable valuation it will have a dominant market share

Fiat currency was created to keep us poor and separared from the gold reserves of our nations. We have all been taken advantage of bt the inflation that only males the bankers richer

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You need to work extra hard to overcome inflation. And how much hard depends on country

Steemit is not an easy money grab like some of us thinks.
But I can not. I can do a lot of things on your post.
Thank you

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Please Stop - @akash2018

You just said "your post" and in your your last 100 comments you used 57 phrases considered to be spam and you made this exact same comment 1 times. You've received 0 flags and you may see more on comments like these. These comments are the reason why your Steem Sincerity API classification scores are Spam: 75.60% and Bot: 1.60%

Please stop making comments like this and read the ways to avoid @pleasestop and earn the support of the community.

because dude thesedays there are a lot of cameras in the markets.

Congratulations @prameshtyagi!
Your post was mentioned in the Steemit Hit Parade in the following category:

  • Pending payout - Ranked 4 with $ 746,53

Great article is a true about inflaction:)

Excellent article ... when reading it I can not avoid the situation that you describe with which we are living in my country Venezuela, where money is not enough for anything and there is no longer talk of inflation, but hyperinflation, where politicians do nothing and it seems that ordinary citizens do not care much either, they let themselves be bought by government bonds that do nothing to solve the problem but they settle for it ...

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Very unfortunate. I suggest u to build yr crypto portfolio

Even though the inflation part of your post is a little scary as inflation is a reality globally, I'm encouraged to write more. I have some short stories that I am eager to release on this dynamic platform. Shoutout for another smash hit @prameshtyagi..

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Sure. Looking forward to yr writeup bro

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Thank you sir..

Life is changing and everything is becoming more and more complicated day after day. That is unfortunately the situation in every country right now. People spend the same money for less things. Everything is getting more expensive, while the salaries are not increasing.The rich is getting richer and the poor is staying poor :(
Big countries are spending money on unnecessary wars and stealing resources, instead of helping poor countries and charities.

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Solution is to chose to do right things instead of just doing anything

It's no secret that the use of strategies on platforms where we make profits like steemit requires the use of our skills to demonstrate where we can be most talented, and this pattern will make us more successful if we find the right path, but most likely it will, because when someone works as you say by dedicating time and investment, all that can come is profit, well said the faithful saying that he who sows and dedicates himself will get good harvests.

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Absolutely. And best example here in my knowledge is @jerrybanfield

really good content