One Does Not Simply - Getting Value

in meme •  8 years ago 
meme

Powering down is not good for the Steem holders, but it's a thing that is perfectly normal. There is an option for that, and you should use it when you feel it's necessary. Steem doesn't lock you in.


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I don't think anyone should feel bad about cashing out. The way that the system is geared up inherently protects Steem holders from big dumps.

Further along when the difficulty raises, price should be less of a concern (in my opinion.)

Sorry, I don't know what you mean under "difficulty raises".
I agree with the first part of your comment.

Apologies, the underlying reason we're able to receive payouts is because of the miners who's computers solve calculations.

The difficulty raises the longer you go on, leading to less coins being created and so the price of Steem should also increase.

I could be wrong but that's my understanding of it.

That was my guess when I've read your comment.

However, that's not how the Steem blockchain works. It's secured by delegated proof of stake, and new coins are issued by the predefined inflation. That will be smaller and smaller with time with a target of 0.95% yearly.

Every day is a school day, thanks for pointing this out to me.

Well that certainly changes the situation a little! No wonder there was confusion.

I took some time to read further into it and if what you're suggesting with regard to the inflation figure decreasing over time then a similar effect should be observed. As the rate of supply will be lower than it is today and hopefully many more users than today!

Do you think this is a more accurate description?

Yes, it is.
I'm glad that I could help you with information. Steem is more simple than a year ago, but it's still a difficult system. However, with that we won a lot of use cases beside social media.