Promoting Steem Economics - For those that are new to Steem and possibly unfamiliar with the Economics of "Where does the Steem come from?" ....I thought I would share with you this Blog.

#Promo-Steem - Promoting #Steem Economics around the World

#Steem Economics and #Steem Inflation

I am often asked... "...what makes you excited about #Steem as a compelling Investment Vehicle?"

Disclaimer

Obviously, I will kick off the Blog with a disclaimer that this Blog is not meant as Investment Advice, but merely Education and I strongly recommend that you always seek Independent Investment Advice before making any Investments.

Dynamics of #Steem

In order to appreciate the complete dynamics of #Steem you have to understand the basics of how #Steem is created and the amount available for distribution.

For those that are new to #Steem and possibly unfamiliar with the Economics of... "...where does the #Steem come from?" ...I thought I would share with you this Blog.

FAQ - Top Right

All the information for the Inflation of #Steem can be found in the FAQ Section of the drop down menu in the top right-hand side of your #Steemit Blog.

Drop Down Menu

#Steem Economics

How many new tokens are generated by the blockchain?

How many new tokens are generated by the blockchain?

Starting with the network's 16th hard fork in December 2016, Steem began creating new tokens at a yearly inflation rate of 9.5%. The inflation rate decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. The inflation will continue decreasing at this pace until the overall inflation rate reaches 0.95%. This will take about 20.5 years from the time hard fork 16 went into effect.

Credit: #Steemit

FAQ - Link

For more information, please see the following link..

https://steemit.com/faq.html#Where_do_the_new_STEEM_tokens_come_from
Credit: #Steemit

Simple Maths

To keep things very basic, I thought I would share with you this simple calculation.

Assuming that there is currently approximately 380,000,000 #Steem in supply and we were in the third year post Hard Fork 16.0 with an annual inflation of 8.0% this would mean that there was approximately on average...

..... 380,000,000 x 0.08 / 365 = ~83,000 #Steem newly created ever day for distribution.

However, as time passes and the inflation rate for #Steem decreases, what I am really interested in is the relationship #Steem has with the US Dollar.!!

#Steem vs. US Dollar

US Dollar continues to load up on Debt

It should come as no great surprise that the Global Economy and Global Financial and Banking System is witnessing a Catastrophic Financial Crisis as Central Banks around the World pile on Debt at an unprecedented pace.

It is this unprecedented pace of Debt Creation which is loading up on an already bulging Unfunded Future Liabilities and measured against a backdrop of a failing Economy that all of a sudden makes #Steem a very compelling Investment.!!

"Fixed Decreasing Inflation" baked into the #Steem System

With a "Fixed Decreasing Inflation" baked into the #Steem System, albeit coming down from the high of 9.5% in 2016, it is this reduced Inflation when measured against an ever-increasing Inflationary Currency like the US Dollar that gives #Steem a compelling advantage.

Add into the mix the growth of #Steem as an Ecosystem building more applications and attracting more interaction with the #Blockchain you can see exactly where the Economics of #Steem is heading.

Exciting times ahead.!!

Thanks again for reading.

Stephen

#Promo-Steem - Promoting #Steem Economics around the World