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RE: Why I put 1 Bitcoin into Steem - Article for my mailing list on 'Bitcoin Millionaire.' Hopefully this gets some more people here!
Nice analysis. Talking about downside risk, the fact that steem in circulation doubles every year, there seems a potential to inflate away the value of the coin. Will a hard cap be instituted or no?
Thanks :) Not sure but is something that will need to be addressed in the future for sure.
Hopefully it is addressed better than the current block size issue on Bitcoin!
Thanks for the analysis indeed! The inflation is a downside, but the concept without inflation is not possible. The earnings for the content creators and up voters has to be paid from somewhere.
I agree on the inflation being required but not convinced that doubling every year is the right number...
Doubling per year is a lot indeed. Im on Steemit for a while now and in the beginning when the first bubble took place there were huge earnings for a few popular posts. This time there was a lot of disappointment of content creators who didn't earn anything with quite good content.
Nowadays you see way more moderate earnings and almost all of the serious content creators are earning something and the best ones even better, but not extreme. The incentive to create content is perfect now and I think the earnings on Steemit are fair and balanced now.
This is the foundation for satisfaction of content creators and will attract more talented content creators, so more value to Steemit. If this expands the network more than 100% per year the value of Steem will still rise. More inflation will attract more valuable content, but lower the price of Steem. The challenge is to find a balance and I think Steemit is doing quite well right now.
Thanks for sharing, you obviously have been around here longer than me so I am really only giving my first impression and ideas of the place!