RE: Would Albert Power Up? You Need a Long Term Plan, Also
While over 90% of Steem is held as power you are still being diluted to pay for content, just much less so than those who don't hold Steem as power.
The better way to view Steem Power gives you the ability to maximize the value of the time you spend on Steem. If everyone contributed proportional to their stake then everyone would "break even" - neither gaining nor losing value.
Anyone who does not continue to contribute loses value and it is transferred to those who remain active. The only time you can sit idle and gain in percentage terms is:
- holding Steem Dollars while Steem is growing less than the interest rate.
- holding Steem Power when less than 90% of people hold Steem as Power
Starting July 4th a large amount of Steem will be made liquid as Steem Dollars(amounting to 2.5% of the market cap). If this gets converted to Steem and sold, it could push the price down and increase liquid Steem to 10% of market cap. At this point it is a good opportunity to buy. On the other hand, much of the SD created will be used to purchase any liquid Steem it can which will push up the price.
Why do you say 5%? Shouldn't that be 1.67%? Right now 30 STEEM is created in total every block. And 1 STEEM is allocated for content rewards. Half of that will be converted to SD. So 0.5/30 = 0.0167. Also, longer term it seems like it should move towards approximately 2%.
The numbers I posted were based upon the impact of compounding for a year and an old assumption that 50% of curation rewards would be Steem Dollars as well. Your numbers are correct.