Re: Steem investors beware

Steem Power is inflationary, if there is less or even stagnant demand for steem then SP holders will lose money.

Really you destroy your credibility when you write incorrect shit that has already been explained in the other thread you started. The maximum debasement of SP is ~6.7% yearly, but typically it is 0% or even a positive gain. The price does not need to rise. You don't understand the math. The 50% yearly debasement is on the STEEM holders, not the STEEM POWER (SP) holders. That does disincentivize medium-term investment demand though.

Quote from: magicalacademy on July 31, 2016, 07:35:26 AM

The price of steem needs to go up or the system won't work, no one would want to lock their money for 2 years if it's devalued overtime.

From the moment of power down, it is a 1 year weighted average price to cash out, because some is cashed out every week. Please stop the 2 years lie. You again are not mathematical. That does disincentivize medium-term investment demand though.

I'll appreciate your criticism more when you become less subjective and more objective based on careful research and analysis.

0% ? iamnotback make it rain, make it rain. I guess Santa must be paying a visit to those content creators more often that I thought.

Dude the math is in your other thread. Go read my posts. Yes indeed 0% if the SP is 90% of the money supply, because 9 SP are created for every 1 STEEM created thus this is a forward stock split (which don't create any debasement of value!). You still haven't learned how stock splits work even I have linked you to investopedia and tried to explain this to you several times.

If the supply of SP is < 90% of the money supply, there is a positive gain for SP holders (because due to the 9:1 minting ratio, it will trend to that ratio thus a gain in proportion of the marketcap).