Steemers want to know, will all these extra rewards crash the price of steem? It is a great question to ask and in this video, I share my insights.
What it boils down to:
- Linear Rewards curve: more voting steem for minnows and small whales, and less voting steem for large whales
- 4x voting power use on 100% upvote
- Inflation for steem is still capped at 9.5% annually, with the 0.5% reduction per year
Found you on youtube and followed here. You doing a great job, thank you!
Great video as always! Thanks a lot for your view and clarification of the Inflation Rate and impact of HF19.
I personally believe this will Motivate People to vest more in SP for the long run, which will help a lot to stabilize the Price of Steem plus it will Even lure more new People to to join Steemit big time!
Could you please follow up with the effect of newly created Steem Dollars and how it impacts the overall inflation rate? That would be awesome! Thx!
With the inflation being pre-set at 9.5% and reduced by .5% every year, this in it's self is an indication that the price of Steem should continue to rise as more users come into the platform with less Steem to be rewarded every year. To compensate for the influx of new users, the price of Steem will need to rise in value to at least maintain current payouts. The main reason I believe this will occur is that holders of Steem Power will be less likely to power down b/c they stand to make much more by holding their Steem in Steem Power as the price of Steem increases. This is where the real money will be made. Members of the community who are invested in the platform for the long haul, for which I believe most dolphins & whales are, will be much less likely to part with their Steem. One thing Steemit will have to do is, which has recently been touched on by @dragosroua, is to use smaller fractions of Steem for payouts as the price of Steem rises. Here's a brief snippet from his post concerning this:
You can read the article here:
https://steemit.com/steem/@dragosroua/final-pool-for-steemit-smallest-denomination-cast-your-votes-before-the-pull-request
For what it's worth, I think this is a really key factor. Not disinflationary like Bitcoin, but at least much less inflationary tan some other cryptos.
thx a lot for clearing this up. I was worried also. Is this also true for SBD that there will not be created more in total?
I am pretty sure 4x is true since I read this multiply times now. Going a bit crazy yesterday my voting power is hangover and I will need to wait a bit for now with my votes.
Did you follow a curator trail? If so have you adjusted your voting power there?
So far I am between happy and confused with the changes. My vote was worth a around 20 cents before and now is a coupe of dollars I was happy and concerned what this will do to the steem and SBD price but it is defenitly more fun if I can upvote myself a meaningful amount now. We shall see how things will turn out but I think you can already notice people are getting more conservative with their votes now.
Don't follow the curator trail. SBD can always be destroyed into STEEM so it makes predicting SBD supply not so easy.
thx for the advice.
I stopped following yesterday and just followed for a day but it drained to much voting power anyways but was considering jumping back in after I recharged, now I wont.
Looks like it's on the rise. There really power in steem! The future is now!
...As I wrote in other posts
I am convinced that steem price will go to 10$ at the beginning of 2018
We will see. I've heard some saying the steem price will up and others saying the opposite. I don't know.
These are very helpful and informative post that you shared to us. Regardless if it is to happen this year or next year, the prospect of steem getting to $10 is very high. Upvoted!
Very informative post. I have been concerned about crypto-inflation on many fronts and in particular with STEEM rewards. I really didn't understand where the reward money came from. It seems this move will really improve morale with nubies and cause lots of overall excitement for the brand, as it were.
Well everybody got there own opinion about everything, but nice information thou... keep it up @crypto-investor
Very good content. I was wondering were the money came from.
Keep up the good work.