There are a lot of posts where this is being discussed but it seems to me everyone (including me) are getting caught up in the euphoria of free money. Free money always comes at a cost to someone.

I have presented in this post a point of view on the economics of what is happening and the long term economic impacts which I don't believe has been discussed by anyone at all. The topic of the economics of blockchains is not a field that is well developed or discussed in a balanced way, but it is something that is key (in my opinion) to the long term survival of any blockchain project.

Economics is one of the things that make Steem different from other cryptos. Evidence of this is that we have already seen a circular economy develop which doesn't really exist yet in other cryptos.
There are a few corner stones to it, all of which contribute in a small way to give its competitive advantage:

• Steem power that locks in your interest for a period
• A pegged asset (to facilitate trade and a link to fiat)
• Fair mechanisms for distribution of new stake
• 50:50 Rewards Structure (with a maximum liquid payout component built in)