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RE: Reminder: If SBD Are Below $1, Convert to STEEM
Hello Luke! I am pretty new to steem and to steemit so making articles which repeat the basics is really helpful for me. I just have one question which may sound silly, but I feel like I don't get it completly: how that steem can produce value for all the users? I mean that even my account which is pretty new got about a half of dolar, but since I didn't invested any money, somebody must have invested them in order for steem, and my account to have this value. But who is investing this money, and why so?
Steemit, Inc owns the @steemit account which creates the existing accounts. When this blockchain first launched, they mined a lot of it early on so they could have enough STEEM to create new accounts and onboard them. That quickly got expensive so they devised a way to delegate Steem Power (which is needed or bandwidth to vote or post on this blockchain) to new accounts. The next big change ("Hard Fork 20") will reintroduce a mining concept so accounts can be created more easily without having to spend STEEM on them.
As to "where does the money come from" for everything else? Well, like most cryptocurrency blockchains, new tokens are being created all the time. Some go to the witnesses who actually get scheduled via DPOS to add new transactions to the blockchain and the rest goes to authors and curators. You can see a break down of that on https://steemdb.com/.
I hope that helps answer your questions. Let me know if you have any more.
If you could write an article about this, or point me to one, I will be very glad. Thanks for the great articles you are writing!
Thanks a lot, this gives me a better idea of how STEEM was created and works. If I will have other questions, for sure I will ask you :D