Are you aware that STEEM and even STEEM POWER will lose value over time because of the 100% per year inflation?
If noone buys STEEM the “Steem Engine” cannot pay you thousands of dollars! The only entry point for real cash if somebody buys!!
For now the price of STEEM is driven up by speculators, believing that the price will go higher and higher. Look at how much effect poloniex's adoption (the largest pump and dump factory) had!!
Because of the increasing price, speculators buy, so it is easy to pay you out if you want your cash!
BUT when the price stabilizes (it will, at some point!) then what? How do the "Steem Engine" pays? Again, the only entry point for cash is buyers, because Steemit does not have a bank account!!
I think the answer is: entrepreneurial investors!
For example:
If you believe in your ability to blog and post, you buy STEEM.
Why?
Because you find a niche subtopic where you can contribute and get buys working! With STEEM you buy STEEM POWER so you can get more attention. Although the inflation will reduce the value of your investment, but you are posting and voting so you earn some money for that work.
The question is, will your earning overcome your loss due to the inflation? Well... this depends how good you are!
The inflation is a hidden tax on everybody! And the value of this hidden tax goes to the successful entrepreneurs!
And so year on year the inflation redistributes the value to the good ones.
See? Nothing is free, you need to work :-)
Steemit is the land of opportunity to work and earn. With bigger initial capital (buying STEEM) you can get richer faster, provided you are good enough. But maybe you will not be that good, and your inflation will siphon your investment's value. But people will keep trying their luck, put some money to boost their STEEM POWER. And THIS is where the money will come from!
This is my line of thinking, what do you think, any other future prospects for a stable STEEM price model?
It's true that steemit might lose value due to inflation, but you don't know when it will happen and in my opinion steem is still in a growth state. When steem will reach its peak we can then talk about the inflation effect.
I think now it is very overpriced. But it may still go much higher, but only because we think it goes higher... Unless some big companies come in and buy some power to promote their products.
Good article, Im excited about the future of the steemit community too and happy that I found it! Feel free to visit my blog too and leave some upvotes, if you like my content. Kind regards from Berlin! Jonas Ahrens
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