Where Does The Money Come From On Steemit? (Is It Sustainable?)
One of the most common questions I get from people is "Where does the money come from?" The common answer is that there is a certain amount released into existence each day but that only answers part of the question. Most people wonder if the system is essentially a perpetual motion machine. They feel that since there are no ads on the site there isn't a transfer of value and one accountant told me it doesn't make sense because a person can pay themselves creating a imbalance from an accounting aspect.
In this pool meeting I talk about a lot of concepts like what Bitcoin, Litecoin and other crypto currencies are backed by. I also talk about how venture capital works in start ups and how that relates to Steemit. Before watching the pool meeting ask yourself this.
- Does Bitcoin's ability to transfer value anywhere in the world give it value?
- If a crypto currency network had the ability to transfer value with no transaction fees anywhere in the world almost instantly would that have value?
- Do venture capitalist dump millions into companies that have never collected $0.01 from its customers or user base?
- How valuable is driving tons of traffic to a website organically?
Thank you for reading my post and please consider following me @brianphobos
Great post! very informative. Thanks for sharing.
You are welcome! Thanks for attending the pool meeting.
Nice info i am waiting your follow and your next content thankx mate @upbuzz
I watched the whole video - and perhaps I misunderstood - but if the money we are earning now is based on early investors - in theory, steemit can only operate on this model til that runs out, right? Or - do current steem and SBD purchases on the market also help fund it? And - is our Steem power sort of like keeping money in a bank - and the steemit operators use it, the way banks do, to fund costs? Hope my questions aren't overwhelming !
Well we are the early investors by having Steem Power whether we earned it from blogging or by converting from Bitcoin. Steem is traded on the open market as I'm sure you know and SBD is as well but is debt against Steem that is supposed to be redeemable for $1 worth of STEEM but it is going for way more right now.
So you are an early investor / promoter of the platform. It would be as if you got a job with Twitter in 2006 and not only did you get paid for your work (Steem and Steem Dollars) but you also got equity in the company in the form of stock options that would be redeemable at a later date. (Steem Power). The nice thing about Steem Power is we can turn on and off the power down and get some of that equity out of the system if we need to. It is pretty sweet.
Right - like you said in the video (the Twitter example). Duh lol. I don't know why I didn't make that connection. It's funny - when you hold a paradigm - or even a question in your mind - sometimes you can hear the explanation and it doesn't click. Thanks for that :-)
I still have trouble wrapping my mind around the idea that we are making actual money on here. It's amazing. Even if a post gets $.05 or less ! When was the last time anyone earned anything by doing the same on FB /Twitter/ETC (not including affiliate links and the like)
20 years on steemit?
Yeah I have been around for awhile. Reverse Ninja mine style
I also wondered how steemit generate the money. Now got the idea behind it.
It is sort of a weird concept to people because everything else has been Ad driven for the most part.
Yes very true. People only see what are obvious to their eyes or rather I would say which is physical not digital. But blockchain has created a revolution in the world and changed people's perception about money. Dear have a look at my blog and tell me how I am doing and what is lacking in my posts.
Good idea to make this post from pool!
Thanks! Yeah it promotes world peace in a lot of ways. Who doesn't have fun at a pool!
I am glad I attended today's pool meeting. I like your analogy with real estate. Still a difficult concept for outsiders to understand.
Thank you for attending the pool meeting!
It is hard for people to understand and another common thing people say is "that post isn't worth that much" And I say, Is Kim Kardasian appearing somewhere worth X amount of dollars, is a super exotic hyper car worth $2 Million dollars, is a fighter jet worth $100,000,000? YEAH.....someone was willing to pay for it.
So if a post gets paid $2,000 on here then the market has spoken!!!! People can't see if for themselves. I want to tell people that this is the new reality. The fact that a celebrity gets paid huge amounts of money doesn't mean you can't as well.
Exactamente ( Exactly )
Very informative, I agree with you. Keep it up.
Have you seen the new giveaway? See my blog post for a link to collect free crypto, a one time opportunity.
Success.
Great overview on this issue... this video will clear things up for a lot of people
Thanks Dan! Is the pool getting warm enough up there? It is burning up down here! You could fry an egg on the pool deck
Jealous! it's been pretty chilly up here this year, way more than normal
Followed and upvoted. As a new steemian, this was enlightening. Leaves me with further clarity as I continue along this path
Look forward to your future post/meetings to learn more. Thanks!
Thank you! Yeah when you first get here the economics of it are confusing in a way and I could see how some people people depending how they found this place could be extremely confused. Especially if someone didn't understand crypto currencies and hadn't sorted that out in their mind. There are still people out there who don't know anything about Bitcoin and will still try to say it is a Ponzi Scheme when it isn't. It all ultimately tracks back to energy cost just like Gold and Silver. That is ultimately what it is backed by. Energy
Oh trust me I know. I feel like I'm in the "closet" most people find my interest in this sector to be a)interesting or b)weird /don't get it
I'm not educated on it as well as id like to be either. Always more to learn and as you said, if it wasn't worth anything people wouldn't be paying for it.