You are viewing a single comment's thread from:
RE: The Price of Steem Will Always Go Down... It's Supposed To : The Magic of Steem Power
All well and good about steem power. Except my SP keeps going up while the overall value of my wallet goes down (note: I'm only holding steem power in my wallet) so there must be inflation and devaluation occuring even with steem power?
The overall value of your wallet is going down because the overall value (market-cap) of Steem is going down. SP doesn't ensure you maintain a dollar value, it ensures you maintain an equivalent percentage stake in the total value of Steem. If the market-cap of Steem were stationary at say $100,000,000. Over time you would see the price of each Steem go down and the amount of SP go up. Balancing each other out for no change in overall value(market-cap). Right now the Steem price is simply falling faster then SP is going up. I hope that makes sense.