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RE: STEEM(IT) Distribution - Rebuttal to @sigmajin ‘Cooking the Books’ Claim..
Dilution doesn't mean you lose money. That is down to the Price of Steem, which is speculative. Every 'startup investor' experiences high levels of dilution from the outset, but that doesn't mean they are losing money,... it doesn't matter if the share price is going up. All your 'losing' is %ownership...
I understand, and forgive me for being unclear, but my main objection was with investing actually having negative effects with respect to dilution. For instance, say someone made a steemit account, started posting content, created a following, and built up a bankroll from his following consistently upvoting his articles. Now he can easily offset dilution rates by working moderate amounts: he creates content and enough of his followers upvote it to make it worth his while putting his limited amount of time towards article writing and blogging. And before he built a following, he had a small amount on the site so he was able to meet his break even requirement easier.
Meanwhile, an investor who has no following powers up a significant amount of money without a prior on site following, so no matter how much effort, formatting, and insight go into his posts, he may not receive the attention necessary to pay off the time spent working on his content.
My frustration is with investing being punished due to a lack of a grass roots buildup before investing. And I'm glad this subthread discussion happened before I powered up 5+ figures into the site because, ignoring steem price fluctuations, I would be diluting faster than my content can be upvoted.