DTubeSnapQ #4 - Where does the $$$ come from?
This is my 4th DTubeSnap, but my first one asking a question to the DTube audience. My question is simple. Where does the money for the reward pool come from? It's a question I know I will and have got when talking about Steemit and all the other dapps on the Steem blockchain. I have still yet to find a simple answer for the average person out there. With a simple and effective answer, it should be easier to convince unsure potential users about the platform. What is your best way of putting it? I would like to know!
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Unfortunately it's not a simple answer if you want to give someone a complete answer of where the money comes from. They first need to understand what a blockchain is and how cryptocurrencies work in relation to them. It would be good if they understood how bitcoin works, but most people don't so it's a bit of a rough thing to deal with.
Not trying to self promote, I just randomly came across this post, but I'm actually in the process of doing a video series right now that explains all this stuff for new people looking to get on here, you can check it out on my blog.
The simplest explanation without getting too technical is that the blockchain produces a certain amount of Steem at regular intervals and the largest portion goes into the reward pool which is then distributed to people participating in the system via upvotes, a portion goes to stakeholders, and a portion goes to witnesses.
The value is determined by normal market forces of supply and demand. Basically people buying and selling the coins, if more people are buying than selling the price will likely go up and if more people are selling than buying, the price will go down. The full explanation is a bit more complex, but that's basically it.
Thank you @midlet for your detailed answer and don't worry about self promoting or whatever. We are all here to help each other out and grow! I'll check it out! Look forward to the video series.
Haha, unfortunately, when I mentioned "blockchain" or "crypto" to family or friends, the looks I get is "here we go again... Trying to make me understand this complex algorithm", of which I don't fully understand myself. Thus, this question was posed on a DTubeSnap.
I believe your last two paragraphs combined with other Steemians' replies are above satisfactory and competent explanations to give to those who are curious or ill informed about the subject. Thank you for stopping by and clarifying my question.
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There are so many questions about this question hahahaha, blockchain meybe has the answers
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Did you noticed that you left three same comments brother ?
Please please delete the other two comments
Partiko's fault hahaha
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Are you sure ?? lol
I am a bot hahahaha
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Hello, my friend. I also don't know about where the money comes from.
but a little from me.
Possible money or results obtained by #dtube are the result of our network too.
Because he has built a project and he invested his shares.
Whereas we only use what has been created by #dtube and the percent we get for #dtube
I too don't know about it properly but someone will definitely answer it
Thank you @freecrypto for your honest answer. I hope someone will. Even if its a diagram that would be helpful too lol
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Frnd @travelling-two
As far as I understand, the amount of money that is invested in the form of a transaction charge of money used by the exchange for the purchase or sale of coins, is given in the form of a reward. However, I am not convinced it is my personal opinion. Better information can be given by Big Whale. Until then we wait.
@certain thank you for your input for this question. Obviously, it's not straight forward thus those who don't like answers that are not straight forward are afraid to commit to something that might look dodgy on the outside. And they have good reason to suspect that, if there isn't a simplified version in layman terms. Other Steemians are providing interesting inputs, please have a look at what they have to say 😊
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One word - Inflation.
Thank you @techcoderx for your input on the matter. One word answers are the best. I believe I read an article from @penguinpablo or someone that over time the inflation will decrease thus making the supply of Steem limited per each day/year and therefore through the principle of demand and supply on the price of Steem should increase. Yet, that's regarding the price and in terms of the Steem "mined" everyday due to inflation, its value is only determined by the speculators/investors and thus the distribution of the freshly mined Steem is distributed daily by power status thus more to the whales, then the orcas, then the dolphins and so on, then this is issued out to those who seemingly deserve it (of course a matter of personal opinion) on the day due to their contribution to the Steem blockchain through their "proof of brain" or "proof of engagement or influential abilities", which is important to seek new users and retain current Steemians. Am I right in saying that? Not trying to sound negative at all as just re-reading this reply back could suggest that tone is being portrayed, but not at all, just being honest and frank.
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STOPHey man! (hey to Leo the turtle and Rufus the Rhino Monkey as well 😊 )
Here is my video response: https://steemit.com/steem/@hashcash/f2luhu7r
The thing is that there is no simple answer. It is not that the answer itself is not simple. It is the fact that to understand the answer we need to understand the definition of money and how it works in reference to market forces
Hey hashcash! Thanks for your explanation on the question (I know it's not simple) and thanks for the video response too! I'm currently low on RC as I delegate most of my SP away, so give it a day or two to replenish and I will respond in full and give you an upvote too!
Leo and Rufus say Hi back! 😉
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I wanted to congratulate you for asking this question man...... It is a simple enough question that I think people are sometimes shy of asking. I am hoping that the combined responses of the users here can create some more enthusiasm about it and also help us improve our own understanding.
..... looking forward to your reply!
Great question!
Since I do not know the answer, will read the answers under your video, from those who know).
Thanks! Yes, we got some good responses there 😊
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