Crazy talk and the Ponz

The other day I replied to a comment somewhere that was talking about Steem being a ponzi scam, with the additional justification that if for example a post payout is 10 with curators getting 5 and there are 10 voters, each curator should get 50 cents each. This has been weighing on my mind a little.

No not the possibility that this should actually be a thing, but how little people seem to know about the mechanics of the platform, or how entitled people must be to think that much wow math is even possible. The person talked of "investing in" which is fine at whatever amount (they had invested a great deal relatively but may have been to them), but any investor would do at least some due diligence.

I would also assume that they would have some understanding of basic economics or at least have read somewhere that this is a stake-based platform. This is actually a bit of a challenge for Steem however, as unlike most other crypto projects that are often filled with investors, nerds and the hopefuls trying to swing for the fences, Steem has a very high degree of normal people.

Of course, that is also the strength of the platform and why I personally see so much value as there are Very low barriers to entry for people into what can be a highly technical and volatile industry. But, even with such barriers, there are always going to be people who assume and expect without actually understanding, which causes a conflict in their position that often affects their behavior.

Case in point is the account I spoke of from above was powering down and leaving because Steem is an illegal Ponzi scheme because new users can't compete with old (BS) because the old will earn more in curation. Well, my account is older than @theycallmedan's, so I guess I earn more in curation... No, this is a stake based platform with capabilities for investing and, some people invest. Not only that, people have vast differences in their economic availability off the platform too.

For example, I am in something like the top 350 Staked accounts on the platform, but I pretty damn sure that I am much further down the list when looking at real world assets and earnings. What people call rich on Steem is rather irrelevant in real life. My account is worth something like 14000 dollars all told, which even if I sold all of it wouldn't do much toward the renovations required on the houses we are looking at in our price range.

That could change of course, which is where the investment comes into it. Steem is a long-term process and it is one that requires a fair bit of faith, commitment and activity. Sure, if someone wants to buy a million steem for 170,000 dollars, power it up, earn a bit of inflation and wait for the moon, they can. But for many including myself, it is more like occasionally buying 170 dollars worth, work my ass off for the rest, power up, curate and do all kinds of other things for the "buy-in".

I am so fucking glad that I get to work for the buy-,in here because if I went to a bank and said, "I would like to start investing with you, do you have any dishes I can wash as a deposit", they would tell me to piss off. And yeah, at times it does feel like doing manual labor for very little return, but at the same time, it is still going toward my buy-in. The manual labor part is mostly dealing with people who do not adhere to the "don't be a dick" philosophy.

Which, speaking of, I ran into the same account again last night on a great technical (above my head) post by @gtg in the comments section with this gem getting spammed around the place. You see, they were never going to last, because not only do they not have the understanding of the platform, they also do not seem to have a great deal of social sense. They have been on the platform since November 2019 - they lasted two months before:

That is one of the all-time great scenes from a movie, I think.

The online social life has been engineered for conflict and entitlements of various kinds, while nurturing a false sense of security from speaking from behind the screen. It is an engineered to make people feel that they can say what they want without any repercussions. But, once they enter onto Steem with their misconceptions and then take a few downvotes, they flip out and do what Australians would call, *"spit the dummy". Throw a tantrum because they didn't get what they want, when they wanted it in the way they wanted it.

While these types of people will always arrive, most of them will also always go, which isn't great for Steem long-term, but isn't bad for Steem for the immediate future. Steem does need investors of all kinds, but it also benefits from investors who are willing to learn about, understand and work toward the future success of their investment. If a person can't survive two months without exploding on steem, they probably aren't really cut out as an early adopter investor.

Which leads me to the last paragraphs (perhaps) which mentions that while there is still opportunity for early adopter investor bonuses, the coming SMTs will add second-layer investment possibilities. And because these are somewhat removed from Steem through narrow focus of topic and experience. as well as the economic mechanics, they are likely to be better suited to people who are not keen on investing in, but still want to invest, not keen on learning too much, but still want to benefit from the learning of others.

As I see it, Communities and SMTs are the bridge that closes the gap between the early complexity and the coming simplicity. The early adopter has to understand more and expose themselves to not only more uncertainty and risk, but also volatility of the community itself, a community filled with a wonderfully diverse range of people, personalities and skills.

For those who have been here long enough, you will likely understand what I am talking about when it comes to the ups and downs of the community, not just the markets. For those who are new, I hope that you are ready, as while there is a great range and level of value to be earned - it still isn't like joining Facebook, Instagram or Pinterest, where people are led through fenced runs like cows to get milked.

Just wait though, easy will arrive for end users and with it, a lower return on investment, with higher barriers for economic success Buy low, sell high on Steem has an even more powerful middle, because what is bought can be staked and actively used to not only earn, but add value to the platform by empowering others.

....Ponzi.

Taraz
[ a Steem original ]