You know... I like Steemit, I'm enjoying the concept... but I still don't get where the money is coming form. I don't understand if this is even sustainable. The devs are withdrawing millions per week. The top dev account is worth over $100M.... SOMEONE is paying for this right?
It is a perfectly fair question. There does have to be some source of demand for the coin and it's derivatives, and it has to be enough to sustain the system even when the system overall is growing slowly or not growing at all.
So you have to think about 'why would people want to buy and hold Steem or Steem Power other than an expected appreciation in value?". In my view the perks of Steem Power are immensely valuable, and would be only moreso in a world where Steem is huge. But if you don't envision people wanting to hold it in that scenario, then you should logically conclude that it is not sustainable long term. It's still ultimately a question that will only be answered empirically.
The simple truth is that the money is generated by the platform in multiple ways and if it is seen as something of value then that value will be attached.
Just like if nations around the world all came to the realization that the US dollar was just cotton paper, and could be better served as toilet paper. The value of the dollar would then reflect the price of Charmin, except that most people would actually still prefer Charmin instead of the dollar.
Good explanation but most of the people still think things only have value if they are backed by something. Like old times with money/gold ... i think is just a matter of time. We are living a moment of changes
It's actually quite easy, the money comes from investors that see the long-term potential. By putting their money into steem (power) they earn voting power like in regular stock companies. If they want to get out they sell their shares again. In the meantime, the money they spend for the shares goes to work. In the case of STEEM(it) the money doesn't go into buying hardware, equipment, development or human resources, but instead goes to people that other investors (small and big) think contribute to the network and should earn some bucks.
Technically, Steem is not a project raising funds on kickstarter, but instead Steem IS kickstarter, a crowd-funded platform that evolves and pays people to develop stuff that other people want.
It actually takes a while to explain the whole system so I stopped bothering. If I found someone generally interested I would, but its mostly skeptics calling it a ponzi scheme that im talking to.
You know... I like Steemit, I'm enjoying the concept... but I still don't get where the money is coming form. I don't understand if this is even sustainable. The devs are withdrawing millions per week. The top dev account is worth over $100M.... SOMEONE is paying for this right?
It is a perfectly fair question. There does have to be some source of demand for the coin and it's derivatives, and it has to be enough to sustain the system even when the system overall is growing slowly or not growing at all.
So you have to think about 'why would people want to buy and hold Steem or Steem Power other than an expected appreciation in value?". In my view the perks of Steem Power are immensely valuable, and would be only moreso in a world where Steem is huge. But if you don't envision people wanting to hold it in that scenario, then you should logically conclude that it is not sustainable long term. It's still ultimately a question that will only be answered empirically.
hi! i would recommend you to read the book Steemit 101. You can find it in Amazon by a very cheap price. It will help you :)
that what i will have recommended, but you did already
The top account is actually a company and not a single entity.
The simple truth is that the money is generated by the platform in multiple ways and if it is seen as something of value then that value will be attached.
Just like if nations around the world all came to the realization that the US dollar was just cotton paper, and could be better served as toilet paper. The value of the dollar would then reflect the price of Charmin, except that most people would actually still prefer Charmin instead of the dollar.
Good explanation but most of the people still think things only have value if they are backed by something. Like old times with money/gold ... i think is just a matter of time. We are living a moment of changes
I agree it should be backed by something. I think that Steemit is interesting because it seems that we are backing the platform with social value.
Exactly. Same happens in Facebook or any other company where valuation is calculated my number of users and quantity of info.
It's actually quite easy, the money comes from investors that see the long-term potential. By putting their money into steem (power) they earn voting power like in regular stock companies. If they want to get out they sell their shares again. In the meantime, the money they spend for the shares goes to work. In the case of STEEM(it) the money doesn't go into buying hardware, equipment, development or human resources, but instead goes to people that other investors (small and big) think contribute to the network and should earn some bucks.
Technically, Steem is not a project raising funds on kickstarter, but instead Steem IS kickstarter, a crowd-funded platform that evolves and pays people to develop stuff that other people want.
(Claps) good point
jajajajajaja is The first question
so true.. right? haha
totally, you did the same ... right?
I say from druglords that wash their money here.
ha ha ha ha I can't speak anymore , could only laugh
hahaha! that´s a very....ehm... funny way to explain it!
Brilliant
It actually takes a while to explain the whole system so I stopped bothering. If I found someone generally interested I would, but its mostly skeptics calling it a ponzi scheme that im talking to.
you are completely right! time will show that Steemit is something very unique
Steemit Quotes Of The Day –
Sometimes life is tough. 諦めない
Btw i upvote your post because it is so hilarious :)
Lmao😅😅