Excellent topic i do think we have to be careful about economic theories that are applied in our standard economies and not confuse them within the realm of the crypto economy. That said there are some practical reasons why people who maybe come from the school of Austrian economics would be anti inflation and why those ideas in practicality may work in crypto.
This doesn't necessarily mean that it will work on Hive.Hive is a special product that significantly depends on high inflation It's a special category. I think the ultimate issue with hive is lack of demand. So it's not that the mechanism of inflation so much is the issue as much as it's many uncontrollable factors as you mentioned those who control the inflation are going to see this system as favorable. However those who control the inflation don't have any control of the demand. So more money can be issued or printed unfortunately new value is not necessarily there.
Where does true value come from? It will come from the growth. Gold had many issues in its deflationary qualities because there wasn't enough to go around. So you had less economic prosperity. We then went into the credit card age. Same thing in the beginning alot of people didnt have credit cards so they lacked the economic prosperity and access of those who had.
So i'm thinking with hive the inversion of that is hive needs demand and growth for its inflation model to work the most effective. Not that it doesn't work how it's designed to work. It just doesn't work well due to lack of demand.
Getting back to those who favor austrian economics in which we find many bitcoin advocates.. Antonopolous.. Trace Mayer.. I think how the crypto space has played out is large supply more likely someone dumps on your head. They keep dumping and dumping so the natural inclination is that sell pressure reduces one of the most valuable parts of crypto for many and that's coin appreciation.
I think another big issue is crypto hasn't done the best job of utility. When i spend a usd..I'm doing that as a medium of exchange. I'm not doing that to get rich lol. Gold same thing , people mostly hold it for the idea that it will preserve, protect and store their value. Gold is not really a play to get rich. So bitcoin or gold 2.0 is in that same declaration of a utility with not so much an expectation to profit. As this better means of storing value than gold. This is all very important because alot of what drives crypto communities isn't utility but it's the hope to gain tremendous outrageous profit.
In looking back at Hive and the steem products. My first thought was this would work better as a stable currency. When you're rewarded for something and there is some degree of value exchange. Most people want to exchange value and that value remain the same and not severely less. In some cases they don't even want it to be worth more.. The problem is like the example of the guy who buys the lambo with crypto.. He makes the exchange a week later the crypto exchange is worth a mllion bucks and not $300k bucks. So in some capacity he overpaid for that lambo. He actually paid more when he wanted to just exchange the value of the lambo.
So i don't fully know the answer for hive products. I think they fun and i think they niche. Although there are many applications doing different things the connection between hive and the rewards pool is going to depend alot on demand. I'm less concerned about if inflation is better or worse for hive. I'm more concerned about are people going to see the demand to use hive.
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