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RE: Steem, a ponzi scheme ? A nice and short answer
It is logical in a way, this model will reach a stand still point. And there are many questions about the model itself that no one can give a clear answer to.
I asked this question and I am still not convinced but any of the answers:
https://steemit.com/steemit/@eyass/where-does-the-money-being-distrubuted-comes-from
Check this post, I had similar doubts but this explanation made it a little more clear for me:
https://steemit.com/steem/@cryptomarket/how-do-steem-dollars-hold-their-peg-to-us-dollars
Nice explanation. But it is not convincing. They are already distributing rewards, so either they have reserve to back those rewards, or they are creating wealth out thin air with the hope that more and more people will get involved and invest, which VERY dangerous.
I might be totally wrong, but this my understanding so far.
Well I can't speak about what could happen and I don't know the creators personally so we can't really speculate about their intentions. What I can tell you is that Bitcoin is basically the same, POW is not creating money out of thin air? There are still millions of untouched BTC since it's origin, what happens if they sell 1 million at once, to whom they belong?
Is not that hard to comprehend, check the comments in that post as there are other useful information. Your argument is basically saying if everybody starts withdrawing their money at once it will create a bank run and a economic collapse. Well yes of course.
Speculation, investments and users is what drives the market. The marketcap for cryptocurrency is huge, that's where the money comes from. If everyone all of a sudden decides that Steemit sucks or there's no value in it then payouts will devalue and users will leave, that's it.
I am not questioning the intentions of the creators in any way. I am sure that they want to see it succeed as I and many other people do. I personally think this one of the few, if not the only place on the web where they promise rewards and actually give them. I am only trying to understand.
I can't evangelize for something I don't thoroughly understand and believe in.