I am afraid I must put myself down, because a previous post I made discouraged investment in Steem. I had read the whitepaper and thought carefully about Steem as an investment, but I had a few key concerns:
Steem has 100% inflation annually...
SteemPower has 5% inflation annually...
Steembots are recreating aristocracy...
Steempower delegation is more of the old corporate America concept...
Let's run through each briefly.
1:
A currency with 100% inflation is really bad sounding, in fact, that sounds like a terrible investment for early investors. Here is why it isn't. It only applies to Steem, not Steem Dollars and not Steem Power. This means that when you buy 100 Steem (yeah, let's go very low) and let it sit as Steem it will be worth 100% less (50 steem) by year's end, exempting the profit from increased adoption of the Steem blockchain over time.
Wide adoption of Steem has the ability to greatly increase the value of Steem and reduce loss and possibly even attain considerable profitability. But that is just a pyramid scheme way of profiting, there is a much better path: Steempower.
If Steem inflates at a rate of 100% but Steempower at 5%, this means that next year for someone to have as much Steempower as you they will have to buy twice as much Steem to buy that power. So, given demand is there, Steempower essentially doubles in value minus 5% inflation every year.
This means the $100 USD worth of steempower you buy today will cost someone else roughly $500 USD in five years from now, and that is if Steem supply and demand remained untouched, but we can expect a rather large increase, after all, Steem platforms are content production facilities, which makes them SEO monsters that will reach wider and wider audiences.
Unapologetic Promotion:
2:
5% inflation to Steempower is probably not a big deal, we don't like it, but reality is that the human population increases regularly as well and this can reduce the issue to some degree. That said, anyone that has lived long enough knows how much things once costed them and now are not that way, and this does wreak havoc on the savings account concept... As crazy as it may sound, perhaps "storing value" is a safety model we need to walk away from somehow. Basic income could reduce the need for it completely.
3: + 4:
Steembots or passive income bots, like most awesome things in the world, in general are both an exciting concept and utter evil simultaneously. Power delegation does allow the little guys to jump in on the bandwagon, which is good, but in many ways I see these bots as Google Adwords all over again. In fact, Steemit is essentially Google Adwords merged with Google Sites + Adsense, only it is in the form of 7 day payments with more volatility about payment. Hate to say this, but that's how I feel right now...
Shameless Self-Promotion:
