McAfree was only not primarily referring to the liquidity available for him to cashout 1% a week, rather the fact that he can't cashout 30% in week because he is forced to lock it for a 1 year weighed average cashout.
Fair enough, but he can't cash out 30% of a private business or real estate or many other investments in a week either.
Apples and oranges. We diversify into speculations either in very small portions hoping for 100X gain homeruns, or for liquidity from other more conservative investments.
Long-term on altcoins is reasonable risk because we have the option to cashout on a skyrocketing pump. If ever there is an altcoin that rises steadily, then great but that has not been the norm.
In short, liquidity is one of the advantages a crypto-currency can offer. I am able to cashout out of Bitcoin into pesos (in the Philippines) much faster than I can from my dollar bank account in the USA, which is one reason I hold some BTC.
because the majority of the rest of the money is not cashing out. If everyone is cashing out weekly, including the Steemit account, then Steem would need 1% of the money supply weekly in liquidity.
I'm pretty sure it is. Just about everyone has been cashing out weekly (or close to it) including the Steemit account. I think the last number I saw was 35 out of the top 40 accounts or something. The Steemit account doesn't sell every single week but they do power down every single week and when they do sell they sell a lot (it seems often in negotiated deals). If anything the rate of cashouts is much higher now since nearly all devs and early miners are cashing out disproportionately (and own disproportionately approximately-100% of the coins, as you know).
Isn't the Steemit account roughly 40% of the money supply. Afair, they have not been cashing out 0.4% of the entire money supply every week (so roughly $1.2 million weekly when the market cap was $300m) unless it was hidden in the form of sales to private parties?
I do agree that there are clearly coin speculators who want to play a pump. Steem won't be for them. I don't agree that precludes there being long term investors who are not looking to play a pump if the investment looked otherwise attractive (which to many at the moment, Steem does not).
Our original argument was about if there is any negative impact of the inflation on those who lockin. I am talking about the aggregate effect on all those who might consider investing long-term. Clearly there is a negative effect, because for example there can't ever be pump, because there is no incentive to accumulate at rock bottom and then engineer a pump.
You are saying there might be a few brave fools who think they can invest long-term in an altcoin and then cash out slowly over a 1 year weighted average. That is incredibly bad odds. It would roughly need to become the next Bitcoin. As you know, typically a wise speculator sells at least enough on the pump to recover their investment (and perhaps a double or triple), then ride the rest.