I have gotten into a debate that never came to a conclusion about steemit and the rising inflation brought on by the currency. Now as I understand it each year the currency double's it's supply, which should in theory halve it's value each year if supply and demand stayed the same. 10% of those funds goes to content creators, and 90% goes back to people with steem power and steem dollars. Does that mean the number steem power owned by one individual increase by 90% each year? Doesn't that mean if the currency devalues itself like traditional currency then you would lose 5% of your value each year? Yes, Yes, I understand, the demand for the currency will increase as the platform grows and that money will go back into the hands of the content creators. But lets say things are stagnant for the platform and no one is selling or buying. Would the value halve next year? Wouldn't you only see a 190% increase in your steem power if you do nothing?
The way I see it is if the currency stays the same in price I am gaining 190% value in my steem power each year through interest. But if the price decreases by half I don't have a balanced amount of money to make up for the loses.
Thank you for your input!
