Steemit is a money printing machine?
I'm here roughly around a week now and I just found out that we get reward for curation because I just got paid once for curative reward although I upvote a lot of post. At 1st I thought there's some fees that steemit will deduct from post like 40-50%. I'm not very good at all the crypto currency stuff but isn't it suppose to be created because it's more stable than money? My question and worry are
When we upvote a post, we are making new steem dollars each seconds which roughly totalled around 80,000 steam dollars each day or more. No one is losing any steam dollars, we just upvote and create new ones. Is it sustainable in the long run? I can understand Bitcoin because there's a cap at 21 million and that's why it's valueable. Is there a cap for steem? And we get steem power interest every min or so. It's like a unlimited money making machine constantly printing money with no limit. More steem in the market means less valueable. No? Can someone please explain to me in simple words how this thing can work? Thank you so much.
Some people Convert SD into STEEM and STEEM into STEEM POWER. Not everybody is selling SD on Poloniex to go in a fake trip around the world to make more posts to milk the whales :)
I am also curious about the long term implications and problems with infinite inflation....
However the problem is mitigated a little at least because technically Steem has 3 seperate currencies, and Steem Power is created equally for all those whom have invested in it in a mathematically, provably fair way.
Basically the system will last until there is a buffer overflow somewhere, however I don't expect that to happen for several hundred years for any given user account based on some napkin math. I may be totally wrong though.
@ned @steemit - has anyone done any testnet testing with exceedingly large Steem Power numbers? Have any economists made any significant evaluations of your inflationary system?
This steem post also really helped me and is pretty new: https://steemit.com/steem/@arhag/where-does-the-money-come-from-a-look-into-the-economics-of-steem
There has to be an increase in supply to create new users. Every crypto generates new currency to reward miners or other people in the community. This crypto rewards people for contributing to the community and some for the miners. Essentially 90% of the new $$ created is used as interest for anyone holding steem power and the other 10% is for the content creators. You can see if you hold steem power you will generate interest. Essentially the currency is hyper inflated, but as long as there is a growing demand for the currency then it will balance out. If demand stays the same then there will be a decrease in value in the currency.
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