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RE: Witness Update for @bacchist (2016-11-21): 4.20 Edition
Especially when they have opposite theoretical results... The lowered inflation will theoretically lead to a higher price in the long run. But slashing the power down period could potentially crash the price.
Yes, I am concerned about that as well. It fuels itself too. If the price is crashing that might be incentive to power down briefly NOT to cash out but to convert to bitcoin, wait for a bit, then buy steem, and power back up. If it is crashing you'd likely end up with a lot more steem power than you had when you powered down, but such activities would tend to ADD to the problem with the crashing price.
That's the most obvious trading strategy in my head. There will be significantly more selling pressure, but lots of liquidity at lower prices. Get out those who don't want to be long term and give those that do a chance to get in lower. Seems good to me :)