BTC's inflation and Marketing vs Steem's inflation and Marketing
BTC once had 175% inflation in 2011. BTC was around $3. Now BTC is $11.5K and its inflation rate around 3.8%. This data shows that Inflation and popularity have very strong relation with BTC's price.
One of the reasons for Steem to perform worse than other altcoins is its inflation. Steem is as popular or little bit more popular than its peers but it is drowning in the rank due to relative higher inflation in this severe bear market where speculation is against Steem.
Steem begin with 100% inflation in 2016 and which is reduced to 9.5% in 2017. After that Steem's inflation will reduce 0.5% per year.
Steem's inflation will reach on par with BTC in 2034: BTC 0.5% and Steem 1%.
In next 20 years, total Steem circulation will be doubled or 100%, on the other hand BTC will have around 20% more in circulation.
But BTC is 11 years old and Steem is 3 years old.
BTC currently has 32 million wallets, on the other hand Steem has 1.3 million wallets.
But BTC has huge media attention. On the other hand, Steem has near none marketing budget. Though there are little bit effort from some prominent Steemians but compared its peers (altcoins) it is almost negligible.
It seems that Steem need ninja-marketing to keep up with little bit higher inflation in the bear market.
However, Steem can acquire 10X more accounts or 13 millions, then inflation is not an issue since new accounts will consume them. If on average each account held 50 SP in 2034, it will require 650M SP in creation more than it will be produced. In case of 100M accounts, the number would be around mere 5 SP per account, let alone few 100 million liquid Steem in the market. Therefore, Steem's goal would be to acquire 100M accounts in next 15 years (2034) which is not far fetched since Steem has achieved 1.3 millions in three years. However, for that to happen onboading and marketing needs a big change-over.
Steem currently lacks marketing effort along with onboarding effort. This is the reason Steem's price is declining at higher rate than its peers in this severe Altcoin bear market.
Peace
@dtrade
Cryptominer, trader and blogger since 2013
Marketing is definitely a key as it could lead to demand growth outpacing inflation over a shorter time which would help prices!
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