I posted this comment on the excellent blog post by Fabio, Synereo versus Steemit (engl):
The inflation of the Steem system works out like this:
- Steem 100% inflation a year - unless you don't grasp basic economics, this is terrible. If you think this is good, you might want to move to Venezuela. You'd love it there.
- SteemPower 5% inflation a year, only if you continue producing content. What happens if you have a stroke and are disabled for two years? Yes, this happened to someone close to us and it's a reminder that some people need a currency that holds value while they recover. SteemPower wouldn't protect the disabled or people unable to work for a season. You better hope that if you have a disability that it's something that allows you to still produce content.
- SteemDollars subject to the Fed's inflation rate. Let me know how trusting them works out for you. We do see the irony of this though; ultimately, they're conceding that Steem Dollars are a better store of value than either of the others. Yet this is the same as saying that the Federal Reserve does a better job at managing money than
and
. Wow.
Ultimately, most people don't get why inflation matters because they are told by mainstream media inflation is good. Steem will be a great lesson for many people who will learn why inflation does matter. It's also been one of the easiest currencies to short because we are literally trading against fanbois who don't get basic economics - 100% inflation is terrible unless you're a borrower. See our point on shorting?
As we've written multiple times, Steem will have to eventually come up with a model to add onto its platform to make it economically sustainable or it won't last. Since we now see the Promote added to each post, you can go back to our very first post and see that we predicted Steem would have to go this route. Steem is conceding to what we've said all along and they will continue to surrender to reality, or fail.
The best news for you though is that you are not a sucker because you follow us and we let you know about reality. We had advised readers a while back about selling Steem, and it subsequently crashed 50%. We'll continue to make sure that we protect you, and we do think that Steem will eventually have a model that works.