You are viewing a single comment's thread from:
RE: Is Burning the Best Way to Save Steem from Inflation?
Think in practical terms.
How does this work in the real world?
Consumer side inflation is a function of LIQUIDITY and DEMAND not "total dollars in existence".
Have you ever heard a government or central bank advocate BURNING MONEY?
No.
When QE1 and QE2 and QE3 were executed, trillions of new bills were printed, but inflation barely rippled, WHY IS THAT? LINK
Spoiler Alert! - Because the new bills were SEQUESTERED in VAULTS.
Powering-up your STEEM has almost the same effect as BURNING IT.
Powering-up your STEEM is like putting it in a VAULT.
That is only one way, because powering up actually still create new steem.
I may be wrong, but when new notes are created they are yes still in the vault but it is still creating a lot more volume even though it is not being used.
The main thing is that we have something being created yet to be widely used, that creates the demand for it.
Your idea is a good one but only having the same amount of "citizens of steem" to keep powering up and holding doesn’t truly solve the inflation on a long term basis.
The most important question right now is what else can we do with liquidated steem (to increase its value of usefulness) besides trading off for fiat to put food on the table / spend off for something tangible, yes?
Posted using Partiko Android
YOU ARE RIGHT!!