We all know the drill. Steem’s inflation rate is constantly falling. It’s now below 9% per year. We hear this again and again.
14 days ago, I did a post about us passing the 300,000,000 Steem mark and included a screenshot from steemd.com:
https://steemit.com/partiko/@preparedwombat/300000000-steem-hy8he42f
Okay, it’s early today. I haven’t had even one cup of coffee. I’m too lazy to figure out the current inflation rate (something like 8.7%) so let’s go with that 9% number, ignore day-to day compounding and do some ballparkish math.
14 days ago we were at 300,274,105 Steem. Multiply that by the 9% yearly inflation rate and divide by 365 to get a ballpark number for Steem created daily. The result is 74,040 which sounds about right in that a year ago the number was 68,000-ish. So over a period of 14 days, we should have added about a million Steem. But a screenshot taken today from steemd.com shows a very different outcome:
14 days later and we’re up by 16 million Steem? Okay, the current (virtual) supply includes SBD’s that could be converted into Steem, the price of Steem has been in the dumps, SBD’s aren’t being created now that liquid payments are in the form of Steem. Maybe there’s some math there that I just don’t grok. But it sure seems like Steem is being created at a rate much higher than its inflation rate.
What am I missing?
Edited: Three weeks after this was initially posted, @exyle did a post at https://steemit.com/steem/@exyle/steem-s-inflation-is-too-high-in-2018-is-the-outstanding-sbd-becoming-a-danger-to-the-steem-supply about this issue. Take a look at that post and in particular its comment section.
Easy!
They wants us to be confused as not to sale your steem.
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Your maths seems correct...weird...
Hope someone can explain this because the number is not helping so much to the price of steem...
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@preparedwombat, where do you get the data from?
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steemd.com
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@preparedwombat, I think that everything is correct.
According, to steemd.com, the current Supply of STEEM is 285,103,787 + 13,184,685 SBD. Current price of SBD is 0,811 $. Current price of STEEM is 0,327. So, 1 SBD=2,48 STEEM.
So, you have approximate supply of 285,103,787 STEEM + 13,184,685 SBD x 2,48 (or 32,698,018 STEEM)= 317,801,805 STEEM.
p.s. 14 days ago 1 STEEM was 0,75 $ and 1 SBD was about 0,90 $. So, the ratio was much lower 1 SBD=1,2 STEEM.
Absolutely everything is correct.
p.s. also If you look at your posts you will even see that people have burned SBD and converted it into STEEM. I did the same. Because I find the conversion rate quite attractive.
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Your math makes sense but I’m still confused. I have always thought that the inflation rate applied to the current/virtual supply of Steem. Is that assumption incorrect? Because if we just look at the two current/virtual numbers, the inflation rate looks more like 100% than it looks like 8.7%. So if the Steem inflation rate is not about current/virtual, where is it applied?
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Where do you find inflation of 100%? According to the maths above the Infaltion is 7-9%.
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From the increase of 16+ million current/virtual Steem over the course of 14 days. Annualized, that’s more than 100%.
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But explained to you above that it is due to the price change. The ratio SBD/STEEM was 1,2 14 days ago, now is 2,4. There is no inflation of 100 %. I did the calculations above. The inflation rate is less than 9%.
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Maybe I’m just dense (a real possibility), but I’ve never seen the current/virtual number fall, I’ve only seen it increase. Are you saying that, if the price of Steem goes up, we could see a total lower than the current 316,772,919?
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But explained to you above that it is due to the price change. The ratio SBD/STEEM was 1,2 14 days ago, now is 2,4. There is no inflation of 100 %. I did the calculations above. The inflation rate is less than 9%.
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I don't know but glad you r keeping an eye on this.
What is your thought about buying steem as your retirement looms?
peace
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I’d love to buy and power up as much as possible. I’m at about 7,200 SP now. 10k by the time I retire?
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i'm over 4,400 ... bought a lot around $0.40 and a little more last night
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$$$$$$$
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I also think it has to do with the amount of SBD being burned and converted to Steem giving the attractiveness of making that exchange. I have done 2 conversions so far and it has made complete sense until now the debt ratio will start giving the conversion rate a haircut so I would assume that this will slow down in the coming days.
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You got a 1.67% upvote from @ocdb courtesy of @preparedwombat!
@ocdb is a non-profit bidbot for whitelisted Steemians, current max bid is 20 SBD and the respective amount in Steem.
Check our website https://thegoodwhales.io/ for the whitelist, queue and delegation info. Join our Discord channel for more information.
If you like what @ocd does, consider voting for ocd-witness through SteemConnect or on the Steemit Witnesses page. :)
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Hi @preparedwombat!
Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 4.689 which ranks you at #1546 across all Steem accounts.
Your rank has dropped 9 places in the last three days (old rank 1537).
In our last Algorithmic Curation Round, consisting of 249 contributions, your post is ranked at #117.
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