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RE: Could a High Steem Price Actually Be Bad for Us?!
One thing I would say is that steem is constantly being created. It is an inflationary currency and cannot survive as a store of value. Though we are rises in price from whatever market forces it may be, the currency will always deflate from it's bubble over time.
Also, one thing I wanted to clear up: is the value of your post in USD or SBD? I've always thought it was SBD.
Great post, Joe.
It's a little confusing because your post value is calculated in steem and then displayed as usd value but then payed out in steem and sbd. So if Sbd are worth $1 like they should, the value would be the usd value. But because sbd are trading high on the market, it shows you the value it would be if Sbd were worth $1. But since it's not, the value it displays is actually less when you calculate the price of sbd. So I guess you could say that the steem half is valued in usd and the sbd half is valued in sbd. Normally it's not a problem because sbd should be worth $1. Hopefully I didn't just make that more confusing... haha.
I don't know for sure if steem is inflationary necessarily. On the supply side it is, but you can't forget about the demand side's effect on inflation. It is designed to increase in supply but it is also designed to increase demand and if demand outpaced the increased supply it would actually be deflationary. I don't know if this is the case, I would have to look into the numbers more, but in theory it could be deflationary. Kind of like how gold has an increase in supply every year (as long as we can still find it) and yet most people wouldn't say gold is inflationary. That is because the demand outpaces the increase in supply.
I think it's inflationary because it will never stop being created, there is no limit. I think the stores of value in the crypto space will remain with btc and ltc and others.
I don't disagree but bitcoin will still be being created when we're dead so I feel it's essensially the same thing.
Bitcoin may still be mined by then, but it's limited supply similar to gold. We will always mine gold, but there will be less and less of it.