You are viewing a single comment's thread from:

RE: Is Bitcoin a Ponzi too? A Simple Explanation about Where Does Money Come From for Dummies

in #steemit8 years ago (edited)

Thanks for your story. But are you sure you are correct about the following?

"Meanwhile, Steem Power holders have slight decrease from 96.0% to 91.4%, about 4.8% decrease. That is, when price become 1/4, you have about 3.98 times more STEEM because you are holding Steem Power."

I assume you mean with "when price become 1/4" it is due to inflation. That will happen after 2 years. If inflation is 100% per year.

If 10% all of new Steem Power goes to content creators and curators and price goes 1/4 (let's say 2 years) because of the inflation I calculate the following:

Let's begin with 10 SP for user X and a total supply of 100 STEEM.

Beginning, day 0: 10 SP
At day 0 of year 1: 19 SP
At day 0 of year 2: 36,1 SP

If the total supply was at the beginning 100 STEEM, after 4 years it will be 100 x 2 x 2 = 400 STEEM

In the beginning user X had 10% of all STEEM (10 out of 100), after 2 years 9,02% (36,1 out of 400). That is 3,6 times more Steem, but user X loses almost 10% of wealth in 2 years.

So basicly: if you buy Steem Power and only hold and the market cap is not rising you lose 5% of your wealth every year.

Or maybe I'm wrong, but please help me out in that case. :)

Sort:  

Since this is the first year and we have a small amount of supply now.