Steem power holders suffer a 10% inflation. When adoption slows down they need to offset this loss somehow or they will loose money over time. Some of them will do this by creating great content to get revenue from upvotes alone. But for a large portion of SP holders this will not be profitable enough to offset the costs of inflation.
So SP holders will start selling their upvotes for money. Probably posts that contain some kind of advertising. There is nothing that can stop that development. Ads are coming when adoption slows down.
And if you think about it... it's not a problem as long as the ads contain valuable products for improving our lives.
The future looks bright with steemit!
I explain a little of this in my video here..
https://steemit.com/new/@stealthtrader/steemit-vlog-2
Check it out and please let me know what you think :D
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Thanks for the video
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Inflation will be offset somewhat by lost passwords, lost wallets, and people who forget about it. And if the market cap goes up to $10 Billion like Twitter then we will still be at $10 per coin even once there are 1 billion coins in existance that's still over 150% upside from today's pricing and we only have just over 100 million coins as of right now so there's still lots of upside. I wonder if management might try and offset inflation by buying back coins similar to how company's buy back there own stock. And they could make it so you have to verify your account with a phone # so anyone that has more then 1 account that is cheating the system won't be able to access their extra fake accounts because you'll only be able to verify the phone # for 1 account so there could be a lot of lost coins. And you also need to factor in that 50% of all new coins curated are in Steem Power so even if they want to withdraw them today it will take 2 years to withdraw those coins.
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Great observation.
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