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RE: Why is the price of Steem dropping. And why it is to be expected.

in #steemit7 years ago

Steem has an inflation rate of 100%, which means there is 2x Steem created each year. In practice, it's even more..
So, a whale can stay on Power Down selling Steem throughout the year, while being rewarded enough to maintain her bag for future earnings.

Morever, Steem Power represents 90% of the market. The price on the exchanges reflects only the last 10% real Steems...

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Steem does not have an inflation rate of 100%. Steem has had an effective inflation rate of ~10% for several months.

"STEEM is constantly increasing in supply by 100% per year" in the whitepaper
https://steem.io/SteemWhitePaper.pdf

The White paper is not updated, there was a change a while back to ~10% inflation yearly.