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RE: Where does all the money come from on steemit? How long can it continue?
Just read the whitepaper of steem u will understand. There is a small inflation on steem so every minute, hour or day steem creates new coins. Just excatly the same with every minable coin but now the platform gets percentage of it. Thats about it. Steem just creates more coins which are given to the makers of great content. So lets create great content!
Hope this helps everyone out
Thanks for the great reply.
Yes, I have read the white paper, but this inflation does not and will never be able to keep up with the payouts if the new users do not keep coming in at a faster rate than the payouts.
This is the same as the social security system. Even thought the US dollar is inflating, there is not enough funds to pay the current retirees and the system is insolvent and having to borrow money. It eventually will have to be overhauled completely.
Will you kindly explain the relationship of the inflation of steem(it) to Social Security?
#bartcardi mentioned in his comment above, that "there is a small inflation on steem so every minute, hour or day steem creates new coins."
This is the same inflation which weakens every asset (dollars, steem etc.) -- Since the people that paid into the SS system 50 years ago, paid with dollars that are not worth as much today, when they retired working people must contribute a larger dollar value to support the retiring.
Each day the SSN system needs more users (people coming into the workforce) then leaving (or being paid) -- this can only happen for so long before there are not enough new workers (steemers)
I'm having a bit of trouble with the explanation. Maybe from a lack of my understanding, but in my mind we are receiving one initial payment of steem. Half in the dollar and half into the bidding pool. Which is creating the revenue for others.
Sure, but where is the original revenue coming from?
You or someone purchased SP and this brought in outside funding.
As long as there are more people purchasing then being paid it works well (Ponzi)