It's basic economics that printing money via inflation devalues a currency. Steem has an 8.6% annual inflation which reduces by 0.5% per annum, the burning helps alleviate the oversupply. I would agree with you if Steem was a static supply token, however it is not, more gets printed all the time that can be dumped on exchanges to lower the price, bruning helps reduce the selling pressure.
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If the steem user-base/economy grows at 8.6% annually, then the -inflation- is essentially 0%.
Yes correct, 8.6% is not a big ask in terms of growth, however it has been rather dwindling of late.