Post
Topic
Board Altcoin Discussion
Re: Steemit how can this thing be workable long term?
by
chryspano
on 13/07/2016, 21:34:15 UTC
@smooth

I don't see how creating an extra 9 steem out of thin air to compensate for a dropping steem price does anything to solve hyperinflation, it actually makes it a lot worse.

An example with a testCoin, you have 10 testCoins smooth has 10 testCoins.

Every year 10 more new testcoins are created, you recieve 9 of them, smooth recieves none and 1 testCoin is used to pay for various jobs/works (my numbers might be a bit wrong but you get the idea)

If the price falls 50% because of this inflation you are barely affected because you recieved 9 more coins.