RE: STEEM #1 Dilution of STEEM & How to Break Even
Thank you for taking the time to reply @fitzgibbon! I highly appreciate your response and pointing these factors.
I don's see the inflation as a issue. In face I see it as an necessity! If the inflation was set to zero, there would be no "free" SBD/SP for voting. The whole STEEM community would run a high chance of collapsing. I'm sorry if I gave a different impression in the article.
It was already becoming longer then I wanted, so I held back on some factors to not bloat it. Since you point it out I will address some of them here:
In the very top of the article I tried to put aside the STEEM to USD value of the token, to put more focus on the dilution effect. The daily fluctuation in STEEMs USD value we see today easily outperforms the dilution factor. If the STEEM to USD value remained unchanged over a year - that would mean that you had a stream of new investors, just big enough to cover the dilution + the "interrest" you got over that year. Meaning you have made a profit if you cash out. Even if you have made a profit you still lost "market share" in this case. If I started bringing this into the article. I think it would become too confussing. So I simplified.
At some point in the future the current level of dilution could become an issue, when the available new investors is running out. What I showed in one of the references, but did not really talk about is that the dilution will gradually be reduced to 0.95% over time. With this change I think the developers acted on that very concern.
My main goal for this post was to raise awareness, put a number on the dilution and show what is needed to over come it. Before I researched it, I know I had a wildly flawed understanding of it.
My no. 1 advice is what I mentioned last; ignore the dilution because it's neglectable and focus on making good posts. But just saying that would not help much conveying an understanding of the dilution of STEEM.
There...now I can say I've made 2 posts today, right? =)
All in all it sounds like we have a similar mindset on all the points you brought up.
Thanks again for pointing this out!
Yes, you have made two posts now! I really appreciate that you reply so fast, that's amazing commitment and engagement. Keep it going! I upvoted it, but I'm a really small minnow and I upvote too much, so the payout won't be much...
I thought you would have replied in one or two days in a new post, because you really seem to have a good grasp on things and you can write and explain very well the intricacies of Steemit, even though it's sometimes a bit of a long read. I sometimes have the feeling I don't understand 80% of what is going on on this platform, so you are a beacon of light!
Your kind words are humbling!
I too have most yet to learn. I start out at 0% and sometimes it goes up, other times it goes back down. I learn about the times it went down, at the times it goes up. Usually those times occur when spending some time to dig around.
Regarding your upvote, I think you said it best:
"...I'm not here to stack your wallet, I upvote your post because I genuinely like the content"
Those are my most favored upvotes!
nice article. and nice addition.
following