Quote from: smooth on July 13, 2016, 10:57:47 PM

Quote from: albert11 on July 13, 2016, 10:19:36 PM

Quote from: smooth on July 13, 2016, 10:09:20 PM

Quote from: albert11 on July 13, 2016, 10:07:47 PM

Quote from: chryspano on July 13, 2016, 10:00:29 PM

Quote from: albert11 on July 13, 2016, 09:56:47 PM

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

Who said anything about "who is causing the inflation"? you asked a question and you got the answer!

Next question please!

Yes inflation is the topic not sure about your question tho

No one including you has been able to answer my initial question which is why im still here

Explain how holding powered steem would protect you from hyperinflation ?

It was answered. In the example there is a 30% increase in the money supply yet you received an 80% increase in your holdings. You more than made up for lost purchasing power. Yes there is hyperinflation but you are not harmed by it, unless the mere fact of nominal hyperinflation bothers you as a religious conviction. Shrug.

The example does not reflect how the steem system works. Steem money supply increase by 100% per year . How do you come up with 30%?

It was 30% in the example given. That's how I came up with 30%. Let's make a new example:

You have 10 coins, I have 10 coins.

Over a hypothetical year, the system creates 2 coins to pay for something. The system also creates 18 more coins to give to you as antidilution (or alternately, inflation protection). The money supply has now doubled (100% inflation, just like Steem). Prices have on average doubled due to this hyperinflation.

You now have 28 coins. Meaning almost 3x what you had before. Even though prices have doubled, you are better off.

The loser here is me, I had 10 coins before and I have 10 coins now, so my purchasing power has been cut in half.

Hyperinflation doesn't make the price of the currency go up, how can prices double due to hyperinflation? Hyperinflation make the price of a currency go down.

Creating more steem to compensate for a steem price decrease is basically trying to solve a problem ( how to compensate steem power holders) with what created the problem in the first place.( inflation).

What happens when the price of steem goes back up? what do we do with all the steem that have been injected?

Today 90% of the steem that are created are paying steem power holder eventhough the price didn't drop, so it doesn't matter if the price rise or not new steem are entering the system at a very fast rate, which means your steem power are worth less and less everyday although you don't yet realize it , exactly like a ponzi scheme.