Scorum has a finite number of coins, there is no inflation on the Scorum blockchain and this is a very important fact for your financial future and it is one of the things that sets us apart from our competitors. I have talked about this in the past but we have a lot of new members now and they need to know why and how Scorum is different from other similar looking projects.
The reason that I'm bringing this up again now is because I just watched this video from the Celsius Network where Alex Mashinsky explains the same concept about their native coin.
It is important for us to remember that even though there seems to be a large supply of available Scorum coins for purchase at the moment it is not strictly speaking true. Yes there are coins available at discounted prices right now, but that is only because the current demand is low. For us, the excess supply of coins for sell is not because the amount of coins is inflating, it is simply because we have more members selling their earnings from the rewards pool than we have members purchasing and staking SCR. As our membership grows and more people begin to use SCR on the betting platform or stake their coins for higher rewards payouts, then the coins will become more scarce and the price will have to rise.
The price of SCR is not determined by either inflation or deflation of the total coin supply, the number of Scorum coins in circulation is fixed and does not change. It is the members and speculators that set the price of SCR on the market, it is all a matter of how much value they place on their SCR at the time.
The main point that we should get from all of this is that, as Alex Mashinsky said in the video, when the price of SCR changes on the market it is at a 1:1 ratio for each of us. Scorum Inc. is not minting new coins and dumping them on the market driving down the price for us so that they can gain some profit. If you purchased SCR during the ICO then those coins are just as rare today as they were two years ago.
Our family, friends, and neighbors are once again starting to realize that what we have been telling them about blockchains and cryptocurrencies really is true and they are finally going to start adopting this new technology by the millions. If more people begin to desire, purchase, use, and hold a limited supply of something then the value of that item will increase. Scorum coins are and always will be in limited supply, right now all we need is more adoption to drive demand higher for all of us hodlr's to see, as well as each new member, 100% of the gains from the increase in SCR value.
I can't tell you how much adoption Scorum will receive, all I can tell you is that I was attracted to the technology, the economic model, and the elegance of the Scorum applications. If you are a member then you were also attracted to Scorum enough to become a member and to start spending part of your valuable time here. If we saw something of value in Scorum then it stands to reason that others will also. We should start to find out soon enough, because new people are coming and they are going to have a big appetite for earning and investing in good sound cryptocurrencies. Why would you leave a monetary system that is inflating away the value of your investments and savings only to invest is some cryptocurrency doing the same thing? Wouldn't it make more sense to invest in, or earn, a cryptocurrency with a fixed supply?