Understanding Dilution - Thoughts on Steem Inflation
I've had quite a few conversations with fellow Steemians regarding this very subject in the last few days. I guess to some nothing was lost, and up to a point, in a macro sense, I guess I agree. In the long run, nothing has been lost, and @dlive leaving is just another battle scar if anything.
I'm more than over it as they say, and ready to move forward on the specifics of a streaming platform. There is a new game in town,VIMM.tv, and already in Palnet we are experimenting with it. For it being so new, it looks pretty fantastic I must say.
Deep Dives
A few months ago I wrote extensively on these ideas, and even had it shared by Andrew Levine from Steemit Inc, so I guess It might be worth a read. Specially, if you think I'm a little too crazy for your taste. Mind you, right before posting this video I went back, re-read my "old post" and don't feel the need to addendums at the moment.
If you got twenty minutes to kill you can visit it here - That should explain in detail my current position on the dynamics of these markets.
▶️ DTube
▶️ IPFS
Is that all?
Inflation / Dilution is the name of the game.
Why is there no interest on SBD?
Every conversion of SBD into STEEM will Dilute the STEEM Shareholder.
Inflation? You're a big guy, did you do the calculations?
INFLATION = 8.66% - 25,854,554
So how do you stay ahead of inflation? Simpel, you can't...
Holding STEEMPOWER = 1.30% nah, that's for fools.
Being a WITNESS = 0.86% nah, that's for wannebee's.
Rape the REWARDPOOL = 6.49%, nah, they will hunt you down for selfvoting. Let that sink in, why are they hunting you? Delegating? Selling your vote? Nah, they are paying you in Debt, SBD... and there you have a famous circle jerk...
The costs to run a Witness server is increasing with the bloath in the blockchain, so they panic, let's increase the SBD debt to 10%, yeah...just be carefull not to be a bagholder.
But, but, we need more money. to run this shit... lets create another fishy shady tax... lets call it RC's, and we have our fingers on the button, so we can sqeeze them out... that plan failed miserably, for now... they will push the button's, just give it time, so they can push the herd into holding steempower, to lock them in, and if we make it impossible to rape the REWARDPOOL, we suck them dry with inflation and dilution.
What kind of business model is this? Let it sink in...
When you oberve the herd, you see they are all cashing out as soon as possible, like there is no tomorrow. Maybe the herd has it's own intelligence, and they take action in the only right way...
I agree with your hidden advice, don't be a bagholder, not in steem and not in sbd, just cashout into another non-inflationary currency.
Ohhh and steem is not a currency, it is a utility token.
Just find out what utility it has, for a handfull of people, that talk like elmo....
See this post for a basic explanation of how inflation and rewards work.
thank you poly... that post is as clear as water... great job!
So I should pull all the monies from STEEM and put it in bitcoin ?
doood bro.... i just paid someone to come take your monies from you... he should be there soon.
Hey thank you for this video and your good explaination :) The coffee metaphor helped me!
Now I am richer in experience abut this topic but also poorer regarding my utopian illusion of a 100$ steem value.
Peace !
(resteemed to share you message)
You should join bittube. you get paid for watching videos and uploading. No ads, and no needless censorship.
@meno Sería genial invertir, tiempo, esfuerzo y dinero en una plataforma propia de steemit o sencillamente una extensión de steemit para vídeos, muchos usuarios con malas conexiones, debemos seguir con youtube por la falta de buenas alternativas.
Oh nice, I think I had never seen you talking on a video before. Enjoyed! :-) I especially liked your analogy of the coffee cup and the comparison with Bitcoin. Thanks for teaching me something new today!
I guess backing STEEM by value through businesses and products built on the Steem blockchain is a key driver to compensate inflation. As long as more and more people keep adding value to the ecoystem (both investing money and time), we probably won't need to worry too much about inflation.
I'm going to have a coffee without additional water now :-)
Precisely it!!!
Thank you for watching Marly and for the kind words.
<3
You're welcome, I enjoyed wathing it and will tune in more often if I see you on the screen :-)
Happy hardfork!
shame SBD is not created anymore
One day away from re-printing them again ... :)
Thanks for your very interesting post.
There's one thing I'd really like to know though.
Why was inflation built into Steem?
Would it not be better if it were neutral or even slightly to moderately deflationary like most cryptos?
I'm assuming there's some good logical reasoning behind the idea of using a currency that's inflationary by design.
I would be very grateful for any information you could give me in this regard.
the answer is somewhat complicated yet simple. Inflation is needed to create the necessity for work, without an inflationary system, people would just buy and hold, they would not be interacting and posting to outpace inflation.
Thanks for replying
So it's essentially the same as most fiat currencies which is essentially a ponzi scheme, or a leaking boat to create work of bailing it out. similar to the broken window fallacy.
As we know (in short)all such schemes by their very nature concentrate most of the wealth in the hands of a few and eventually collapse. Just like the US economy without the gold standard.
Please see my article: https://steemit.com/steemit/@amd64/is-steemit-dying
and the included link: https://steemit.com/bitcoin/@amd64/bitcoin-and-deflation
I feel it's unfortunate that they choose this model since there's no necessity to Incentivize interacting and posting. Just look at FB, Twitter and Youtube. Where's the incentive for interacting and posting there?
While some posters are financially incentivized, but even when those incentives are removed it doesn't discourage them from posting, and the commentors, up/down voters and retweeters and viewers get no financial rewards.
Still this doesn’t stop them from getting hundreds of millions of users.
On the other hand if Steemit had chosen a somewhat deflationary currency and didn't pay dividends on SP or restrict it's withdrawal, the investors would be happy since the value of their investments would still grow naturally.
But just as importantly the value of all the other activities i.e. posting, voting etc. in fact the value of the platform as a whole would tend to increase over time, making it far more attractive to all concerned.
Oh thanks, i'll go read those...
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