Is Steemit a Ponzi scheme?
Steemit is focused directly on the user’s ability to upvote important or intelligent post on any topic. The flaw? The flaw lies in the core of Steemit. Any user being able to upvote their own post could ruin this platform. Being able to not only share a post with your followers, but also up voting it gives the person with the highest following the highest amount of power and growth. The problem is the same with YouTube. The top viewed and followed creators mask the rest of the platform. This problem is more relevant with Steemit since the top users can literally pay to remain at the top. The endless loop continues without interruption: Top user makes a post, that user is paid, the money goes to growing their following, rinse, and repeat.
Hmmm, I have never tot of it like this before. But seriously, the whole idea still baffles me when you really can't make anything just because it all depends on your voting power and who upvotes your post. It is well
Just something to think about.
Yeah you're right
I wondered that myself when I first was going over the structure. Anyway they do have some interesting takes on the upvoting of oneself, they actually applied the term called N-Person Prisoner's Dilemma to it. (page 14) Also that the platform is characterized upon what they call Zipf's law (page 16) and basically has the same psychological effect of that of a gambler.
https://steem.io/SteemWhitePaper.pdf
...don't forge to read the crab bucket story