Where does all the money come from on steemit? How long can it continue?
I really love Steemit and have very high expectations for it -- but a nagging question is WHERE does all the money come from?
There are serious mathematical anomalies when you start to analyze the revenue stream --- steemit has NO revenue stream. It has no advertisers, it can not have sufficient interest bearing accounts capable of keeping up with the outflow.
Yes, of course authors and curators are paid in SP and Steem, not USD, and yes the SP cannot be withdrawn immediately, but this does not matter. The only way for steemit to continue to pay out anything that can be eventually traded to with USD is -- it must have a source of USD (or something that converts to it.)
A the current time, due to the constant influx of new subscribers, there will be ample numbers of new authors "Powering up" so they have more influence. This action of course causes the price of steemit to rise allowing the pay out pool to increase, but still THIS IS NOT SUSTAINABLE!
Eventually there will not be enough newcomers to keep powering up and keeping the pool of SP on reserve growing.
Articles on this subject often make statements like "Only 10% of the pool is used to pay out awards". Again, being a statically orientated thinker, this does not explain long term capability. It really does not matter how much of a pool you pay out at a time, if you keep paying it out and nothing comes in, it will be emptied to the point of insolvency or default.
According to multiple articles I have read on this subject, the CEO Scott stated they had a quote, ‘super angel investor’. I can certainly believe there are early investors including the founders who already had wealth --- but sooner or later there HAS TOO BE A REVENUE STREAM other than new users.
Perhaps advertisements are just around the corner or some other system for capital appreciation and I hope so as I really want Steemit to stick around for the long haul.
I have invested plenty in steemit (check out my wallet if you like) but I am very concerned about the current math and fundamentals for Steemit.
Please comment and let me know where I have gone wrong with this thought process.