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RE: Amazing Math-I'll Make More Money in Steam Power Over the Next Year Than At My Day Job. P.S. I'm Not a Whale
If you want your mind blown a little more, the rate you're getting STEEMPOWER for doing nothing is based on your balance. So as your balance grows, so will your earnings. It's growing exponentially not not linearly.
However, the inflation rate of STEEM is intended to be 100% per year, so the value of your STEEM (all other things being equal) one year from now will be worth half of what it is today.
Still, it should be a pretty wild & fun ride. :)
Yeah, I know about the compounding interest. I'm to lazy though to figure out that math. :)
So, if the value of STEEM is going to halve in a year, are you saying that someone buying STEEM on the exchanges needs to expect the value to more than double over the course of a year to make any profit?
Someone buying 1 steem today for x BTC should expect to be able to sell it a year later for x/2 BTC, all other things being equal. The intended inflation rate is 100%. The US inflation rate us usually around 2-3%.
See the whitepaper: https://steemit.com/steem/@liondani/steem-whitepaper-download
Search for 100%. However, not all other things are equal with STEEM. The whitepaper argues that since 9 out of 10 newly minted STEEM are re-invested into STEEMPOWER, the perceived inflation rate will be much lower. This will have a large effect and it's likely that the market price will be higher than x/2 a year from now, maybe even >x. All other things are not equal with STEEM because of that, and because of the massive influx of the rest of the population expected in the upcoming years.