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RE: How The Rising Price of Bitcoin Is Likely to Effect Steem (and other cryptocurrencies)
Steem's a bit of a Dark Horse in the digital currency ecosystem.
It's inflationary nature has always troubled me, but then, there isn't really another way to keep distributing Steem every day. The system doesn't work if we can run out of Steem.
That said, I have been surprised at how resilient Steem has been. Even when it dropped to 7 cents, it did not collapse entirely and even bounced back.
So there's definitely something here. I'm just not sure exactly what that could be.
The inflationary nature is Steemit's biggest weakness, but also it's greatest strength. Like you said, the inflationary nature means better distribution. Also, remember that almost all world currencies, including the dollar, are inflationary fiat currencies.