Bitcoin has a 21 million coin cap, and a deflating inflation rate... Steem runs at 100% inflation per annum into perpetuity..
The comparison would be more correct if I said, They found a gold reserve the size of all gold ever mined...and then found another one the year after...
No that would simply lower the long term cost of gold since its demand would drop to the floor. If they found a comet made of gold tomorrow that could be reasonably and cheaply mined and return back to earth in a reasonable amount of time, the value of gold would start to decline since the supply dramatically increased.
This is neither gold, nor is it a fixed supply side. But the information in all directions is near perfect, and the liquid supply is throttled based on user dynamics. This makes for a far more stable price and much more predictable market dynamics for all.
Basically, whales have a harder time controlling the market.
I'm not going to stand by my Gold example as an eloquent infallible argument. It's certainly not perfect. Mearly representative of an increase in supply and what effect that would have on the price of an asset.
Steem and Steem Power are inextricablly linked, but the Gold thing made sense to me because Steem Power is not liquid 'it's in the ground and needs to be mined to be of value'. I would add to all our banter with, I'm try to simplify aggressively, I want to have a conversation with everyone and help people understand (In the words of Donald Trump) "what the hell is going on".
My replies are explanations not to tell you your wrong. This is what is great about Steem. Civilised discussion
Bitcoin has a 21 million coin cap, and a deflating inflation rate... Steem runs at 100% inflation per annum into perpetuity..
The comparison would be more correct if I said, They found a gold reserve the size of all gold ever mined...and then found another one the year after...
No that would simply lower the long term cost of gold since its demand would drop to the floor. If they found a comet made of gold tomorrow that could be reasonably and cheaply mined and return back to earth in a reasonable amount of time, the value of gold would start to decline since the supply dramatically increased.
This is neither gold, nor is it a fixed supply side. But the information in all directions is near perfect, and the liquid supply is throttled based on user dynamics. This makes for a far more stable price and much more predictable market dynamics for all.
Basically, whales have a harder time controlling the market.
I'm not going to stand by my Gold example as an eloquent infallible argument. It's certainly not perfect. Mearly representative of an increase in supply and what effect that would have on the price of an asset.
Steem and Steem Power are inextricablly linked, but the Gold thing made sense to me because Steem Power is not liquid 'it's in the ground and needs to be mined to be of value'. I would add to all our banter with, I'm try to simplify aggressively, I want to have a conversation with everyone and help people understand (In the words of Donald Trump) "what the hell is going on".
My replies are explanations not to tell you your wrong. This is what is great about Steem. Civilised discussion