Re: Steemit how can this thing be workable long term?

@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.

Which in turn will cause the value to drop even more. That's what happens when you keep injected more coins it makes the coins of everybody else worth less.

His example was correct. The price will not drop even more. In fact 50% is overstating it. In his example the money supply has increased by 50%, meaning prices will drop by 33% all else being equal. You actually come out ahead with your 9 additional coins. You have not lost any purchasing power.

Why in the example smooth receives none? AFAIK every steem power holders receives some steem proportionally to what they hold

Smooth was the STEEM token holder in the example. You were the STEEM POWER token holder.

steem token holder are not relevant here because they aren't really the one causing the hyperinflation