That's good to hear, I thought I was missing something! But I think I am on the right side of the debate on this one, I guess time will tell, but I remain very optimistic about STEEM
Firstly the community on Steemit are THE BEST! The majority of people that hang around really do seem like some of the kindest people I have ever met (you are a prime example of that @meno!) . And that statement on its own is a reason to be here regardless of the income opportunities.
But boy, the potential! I almost burst at the seams just thinking about it!
I reinvest everything I earn back into the system and really hope that there isn't something we have missed here that means it's all for nothing. Even if that was the case I'm making sure I enjoy the journey and learn as much as I can on the way!
Just like you @meno I love helping others and this is the perfect platform to be able to do that!
You are missing one thing, steem splits every 3 years by 10/1, so the price would also go to 10x, are you putting this into your math? because that would make steem price go to 10.000 each steem, but everyone would also have 1/10 of the original steem
For simplicity, I have ignored the annual inflation which is less than 10%. I am assuming that's what your talking about?
The reason for ignoring it is all other currencies we are comparing it to are also inflationary.
Otherwise, I am not sure what you mean by everyone holding only 1/10 of their original amount in 3 years. That would mean a steem inflation rate well above the ~9.5% that is governed by the blockchain.
Do provide more details as I would like to understand
I guess you didn't read the whitepaper... this is coming straight from investopedia:
Every 3.32 years, the Steem network undergoes a 10:1 reverse split, meaning each 10 Steem tokens become 1 Steem. This effectively limits the window of quantities of Steem which are available. At the same time, the value within the broader network gets redistributed over time, so that users who are more committed to holding Steem tokens of various kinds end up with a greater portion of existing tokens.
The number of Steem available is set to double annually, making its supply growth exponential - a possible drag on its future value in the market - but there is a catch in that every 3 1/3 years, there is a self-generated 10:1 reverse split in the supply, resetting the process. For example, if the total money supply where the following: (See also: Bitcoin Extends Rally)
Year 0: 500 Steem
Year 1: 1000 Steem
Year 2: 2000 Steem
Year 3: 4000 Steem
Year 3.32: 5000 Steam (reverse split now occurs, and the number of Steem goes back to 500 and the process starts all over again)
Ok, it seems that the whitepaper was updated 11 months ago into a new form and the reverse split info was removed... my question now is, the info was removed or the function was removed? Probably the function, guess no more reverse split :P
NP, being wrong is part of being human xD But the thing is i could understand the reverse split.. it would "hinder" hyperinflation a little... don't you think?
To be honest, i think the max value Steem should get to is 10$. More and even more more, would change the purpose of Steem and its Network. Bots will be taking over the Steem World, fighting a war against the simple User and every Chance to have a glance at the spot where the sun shines the most. It is a hard world, but a steem prize at 1000$ will have short term effect but affect the global life of everyone. No one will work anymore, they will write comments, just in hope to get some thousands of dollars for a pretty smiley or something like 'awesome post', wait that is still to long, just 'post' (yeah that seems right). Long term, the fall of Steem will lead to the fall of every other crypto currency.\
I guess the witnesses would decide to change the payout structure if that happened though to keep it from becoming a money printing machine for spammers?
I heard an interview with one of them a while back where they were talking about using their collective power to try and peg SBD near the US $ and allowing STEEM to rise to attract investors. If it stagnates then it will only be attractive to users of the system and not investors? Can't say I understand much of it but that's sort of what I got from it!
I'm glad you have eyes that see! :) ... steem is waaaaaay undervalued imo as well ...
That's good to hear, I thought I was missing something! But I think I am on the right side of the debate on this one, I guess time will tell, but I remain very optimistic about STEEM
We are on the same page brother. I also think its very undervalued hence why I'm in full accumulation mode right now.
Me too, it's super cheap in my view, been picking up as much as I can. Compared to all the junk out there, steem looks like a great purchase
I'm with ya!
Firstly the community on Steemit are THE BEST! The majority of people that hang around really do seem like some of the kindest people I have ever met (you are a prime example of that @meno!) . And that statement on its own is a reason to be here regardless of the income opportunities.
But boy, the potential! I almost burst at the seams just thinking about it!
I reinvest everything I earn back into the system and really hope that there isn't something we have missed here that means it's all for nothing. Even if that was the case I'm making sure I enjoy the journey and learn as much as I can on the way!
Just like you @meno I love helping others and this is the perfect platform to be able to do that!
$1000 - oh boy, wouldn't THAT be something!
If it does, I will put on a diaper.
Promise to send pics?
Better with diaper than without man!
If steem hits 1000$ a piece.
then people with just 10sp
could give upvotes worth 1$.
That would be amazing :D
The value ofSteem in dollars is complex. The dollar is not stable!
You are missing one thing, steem splits every 3 years by 10/1, so the price would also go to 10x, are you putting this into your math? because that would make steem price go to 10.000 each steem, but everyone would also have 1/10 of the original steem
For simplicity, I have ignored the annual inflation which is less than 10%. I am assuming that's what your talking about?
The reason for ignoring it is all other currencies we are comparing it to are also inflationary.
Otherwise, I am not sure what you mean by everyone holding only 1/10 of their original amount in 3 years. That would mean a steem inflation rate well above the ~9.5% that is governed by the blockchain.
Do provide more details as I would like to understand
I guess you didn't read the whitepaper... this is coming straight from investopedia:
Let's stick to primary sources, I have no idea how accurate "investopia" is. The white paper can be found here:
https://steem.io/steem-whitepaper.pdf
You want to go to page 21 where it says this:
I couldn't see anything about the reverse split, feel free to point it out and I will take a look.
Thanks
@kabir88
Ok, it seems that the whitepaper was updated 11 months ago into a new form and the reverse split info was removed... my question now is, the info was removed or the function was removed? Probably the function, guess no more reverse split :P
https://steemit.com/steem/@steemitblog/a-radically-updated-steem-whitepaper
look here into the "changes" in the new whitepaper, it seems they removed the split
Thanks for checking! You had me worried for a second.
NP, being wrong is part of being human xD But the thing is i could understand the reverse split.. it would "hinder" hyperinflation a little... don't you think?
Regards @kabir88
Could this be possible in the Future to have the steem to 1000 $ ?
Hopefully the steemit/dtube/dsound community will grow day after day
Feel free to enjoy some of my music if you'll visit my page
Regards
Nice work man, we shall see
Thanks! Making the case for optimism :)
To be honest, i think the max value Steem should get to is 10$. More and even more more, would change the purpose of Steem and its Network. Bots will be taking over the Steem World, fighting a war against the simple User and every Chance to have a glance at the spot where the sun shines the most. It is a hard world, but a steem prize at 1000$ will have short term effect but affect the global life of everyone. No one will work anymore, they will write comments, just in hope to get some thousands of dollars for a pretty smiley or something like 'awesome post', wait that is still to long, just 'post' (yeah that seems right). Long term, the fall of Steem will lead to the fall of every other crypto currency.\
JK, but really, steem should not rise too high.
I guess the witnesses would decide to change the payout structure if that happened though to keep it from becoming a money printing machine for spammers?
I heard an interview with one of them a while back where they were talking about using their collective power to try and peg SBD near the US $ and allowing STEEM to rise to attract investors. If it stagnates then it will only be attractive to users of the system and not investors? Can't say I understand much of it but that's sort of what I got from it!
I can see that you have invested some ££ into STEEM, just like I have. Its good to see someone on the same wavelength and who believes.