RE: Steem price and low demand - Fix it finally! Solution is waiting
Thanks for the link. It says that "Steem Power is meant to be cushion against the inflation." That statement is not correct. It just gives significantly less inflation compared to Steem but there is still huge SP inflation and so it's no cushion in general. "1 MVEST today is still slightly more than it was pre-price pump!". True but I have not seen any alive crypto project that lost 95% of marketcap. Also although it is still true for now there is nothing that should keep it at least that high for the future. Inflation and money outflow (which is currently slowed down) will put it much lower if my fundamental assumptions are correct. There are many new Steem users, but in spite of that price of all measurable units (STEEM, SP, MVEST) is falling down because it's poorly designed and set from investors PoV mainly due to strong investment degradation by inflation and also too strong money outflow (which is currently partially frozen as rewards are currently mostly in SP).
I've read posts that basically described the price spike as an investment round to generate funding to build out the site and fund other projects. Granted the fall from the spike looks really bad, but if you ignore it and just look at the historical price trajectory - the value of SP shares has still gone up (slightly).
I agree. I'm also still optimistic in long-term because Steem creators brought some really smart ideas on the table and that makes me believing that they are smart enough to correctly understand what's wrong now and will be able to fix it soon.
People who say that are just trying to find excuses for the price drop.
If steem wasn't so inflationary the platform would be a perpetual source of funding and the system would never run out of money to fund new projects
That's what attracted me at first, I saw for the first time a self funding model where the blockchain issued new money to basically fund itself. Imagine if bitcoin miners used part of their revenue to fund bitcoin startups, bitcoin would have a lot more marketing going, more quality products and be overall more healthy.
Steem could have been that if the system allowed speculators and investors to take part, unfortunately the inflation and the 2 year lock period prevent them to enter.
That's not correct in general. When 90% of STEEM is powered up, SP has (approximately) no inflation at all (more units are created but it has the effect of a stock split where everyone gets proportionately more shares; no one loses value). When 100% of STEEM is powered up, SP has about 10% net inflation (long term average; currently this is higher). Currently STEEM is 93% powered up, or 86% powered up if you include virtual supply (debatable whether this is correct), numbers which have both continued to fall more or less continuously since the launch. The meaning of all this is that SP currently has very little inflation, arguably negative. The future is uncertain but there is no reason to believe that SP "real" inflation would ever closely approach the 10% maximum in practice.
Thanks for the details. Even that doesn't change my major major objections:
Even now it's a "punishment" for both cases. As I've written we need inflation range that doesn't frustrate users from holding STEEM/SP.