You are viewing a single comment's thread from:
RE: Could a High Steem Price Actually Be Bad for Us?!
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.