Thanks for the post. Eventually I have to assume the sheer amount of steem would push the price down, but its actually gone up in the short term, which I was not expecting
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Thanks for the post. Eventually I have to assume the sheer amount of steem would push the price down, but its actually gone up in the short term, which I was not expecting
Actually, the price shouldn't drop simply because of the inflationary rate. That would assume a static environment. The userbase is growing faster than STEEM can inflate, hence demand for STEEM is also increasing. As a result it'll push the price upwards. Additionally payouts in USD should ideally stabilize to a certain acceptable level forcing the value of STEEM to appreciate to maintain that level as the amount of STEEM payouts declines with the rise of users making claims on it for authoring and curating. All theoretical but it's typically what we see in economies like this.