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RE: If you have over 2500 SP, you can retire*
You are forgetting that every three years the total number of steem is reverse split 10:1.
You are forgetting that every three years the total number of steem is reverse split 10:1.
That doesn't change what I'm saying in the least. Your 1 steem becomes 0.1 steem. It's still worth the same; getting less and less as time goes on (assuming the marketcap stays the same)
It does because you are assuming the market cap grows exponentally when it very much does not. Steem is not exponentially inflationary.
Hmmm....
Does this mean that we can mitigate that quantitative loss
by just buying/selling just before it's occurrence?
Thanks,obfuscate-meCan you explain that a little more?
Every three years the total number of steem is reduced and you get back 1 steem for every 10. While the total valuation remains the same. So if you had $300 worth of steem worth 1 dollar pre split you would have steems worth $10 after the split. Just less numbers of them. For more description of this check out the white paper.