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RE: Why is the Price of Steem falling? Does it Matter?

in #steem-price8 years ago

"in order for you to lose value in Steem Power over the next year, Steem prices with need to fall more than 70%. This is because, Steem Power Rewards are currently running at around 312% for the next 12 months"

Can you explain this a little further? Where does the 312% come from?

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It's a little complicated, but i have posted on this before here. Essentially Steem is in distribution mode at the moment, and the dilution rate is currently much higher that the 100% everyone cites. It will be 100% in around 15months times.. We are currently running at about 312% for the next 12 months...

In the original statement it sounds like you are saying that even if the price declines by 70% you will be fine because currently rewards are running at a 312% increase/gain... am I reading this wrong?

That is correct. For the next 12 months