Putting the Steem inflation into perspective

in steem •  2 years ago

As you probably know the supply of Steem is not fixed. Each day new Steem is being created to be distributed among the best authors and curators of the network and a smaller part is for the witnesses and all Steem Power holders.

Steem inflation rate

The current inflation rate is about 9.5%, but it is set to decrease to 1% over the next 18 years. See this post by @fyrstikken for a Supply-Table for the next 20 years. At the current supply of nearly 250 million Steem about 65,000 new Steem is being created per day.

65,000 Steem has a value of roughly \$53,000 US Dollar at the current price of \$0.82 per Steem.

So about \$53,000 US Dollar worth of Steem is being distributed each day. That may sound like a lot of money to you, but let's put this amount into perspective.

Did you know \$3.2 million worth of Bitcoin is being mined every single day?

• 12.5 new bitcoins are being created/mined roughly every 10 minutes.
• 1,800 new bitcoins are being mined every day.
• 1,800 BTC * \$1,800 USD = \$3,240,000 US Dollar a day

Did you know \$370 million worth of Gold is being mined every single day?

• Since 2008, gold production has increased steadily to an estimated 3.1 thousand metric tons in 2016. (source)
• 3,100 metric tons equals 109,349,282 troy ounces of gold.
• 1 ounce of Gold is worth about \$1240 US Dollar.
• 109,349,282 troy ounces * \$1240 = \$135.6 billion US Dollar a year.
• = \$371.5 million US Dollar a day.

Did you know the ECB is 'printing' 2 billion euros every single day?

Did you know the European Central Bank (ECB) is buying 60 billion euros of assets a month with newly created money?

• 60 billion euros = \$66.65 billion US Dollar a month
• = \$2.22 billion US Dollars a day

To sum it all up:

• \$2.22 billion of new printed euros by the ECB per day
• \$371.5 million of new mined gold per day
• \$3.24 million of new mined Bitcoin per day
• Only \$53,000 of new Steem per day! 😋

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Great post.
Definitely puts things into perspective.

Nice breakdown @penguinpablo! Thanks:)

I like how you highlight those keys points and drive home the message. Great article, i definitely see and understand the substance. I am optimistic.

Thanx for the info. Never seen it compared like that.

Good one @penguinpablo - very informative

For example, I do not know about it)))) This is good info)))) Resteem )

Awesome breakdown and comparisons @penguinpablo.

Puts things nicely into perspective.

Thank you very much for the enlightening comparisons and contrasts!

Regulated inflation... what a concept!

😄😇😄

The key point for me is there is 53,000 dollars up for grabs each day. Let's get writing.

Thank you very much for this useful information! I want to add this thought:
If we double the number of main posts, we also have to double the value of steem in fiat, so as to have the same rewards measured in fiat. To double the price of steem we need some patrons who are willing to absorbe liquid steem.

Great post! very good information!

·  last year

Thanks for clarifying the inflation and putting it into perspective with other currencies. I like that Steem is trying out a whole new approach while giving back to the community instead of accepting the status quo like other coins that follow Bitcoin's model. There is a learning curve since no one else did it, so it will be seen how steem reacts and improves.

·  last year

I liked this comparison! :)

What I really liked the platform proposal, but the issue of inflation, the price increase was despairing me lately, great post.