Proof Steemit is a scam and a ponzi scheme

in #steem8 years ago

Unless someone from the developing team can rebuttle this these guys make pretty good cases as to why steemit is a scam

https://bitcointalk.org/index.php?topic=1558366.0

https://steemit.com/steemit/@afilja/is-steemit-a-ponzi-lets-investigate

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I'm curious to know why the founders are powering down

they have to pay for some much stuff to keep everything going nicely. Do you think professional people in the security industry come cheap? or business development? or any other?
Look at all the money all the people are making. @Dan and @Ned have been building Steem/Steemit for 2 years. Don't you think it's time for him to cash out a bit also?

I thought this too, and then I saw this via SteemDown.com

@steemit is powering down 1 Million a week. The Steemit account has 1 post, and does not vote (therefor, it does not distribute it's funds to the network, it does not reward the people who give the network value.)

Really curious about an economic explanation as to why this would be acceptable, (1) why the primary holder of steem doesn't redistribute it's funds to those who give it value and (2) why will the primary stakeholder have zero stake in the network in less than 2 years.

Are they liquidating to make up for overhead? Will they stop the powerdown after a couple weeks/months? All possible reasons, but so far, it's been mostly silence.

@steemit is the main account, the default one. It's also the one that funds the development of the entire platform I think. It doesn't have activity because it's just a holding account for the Steemit Inc.

Yes, but it's also the majority stakeholder, and it's a 100% power down at $1M USD a week. I have a really hard time believing Steemit has a burn-rate of $4M a month. @steemit has 60M Steem, the available supply of Steem is 100m, That's 60% of the entire supply of Steem.

(1) The account doesn't vote, so that is not redistributed to the network.
(2) It's a 100% powerdown, in <2 years the entire account would be depleated unless the powerdown is stopped.

Again, there could be legitimate reasons for this, but I'm hard pressed to find any.

HolySmoke!... AND they're o.k. with spam, because it increases their profits... i'm seriously starting to think it May be a scam in fact...

Well, there is no "they," only a "we." While there are definitely still whales with supremacy, they are being diluted on a daily basis. Dealing with spam is up to everyone, and there are projects that deal with problems like this, see @steemcleaners.

Whales being diluted or created....? i suppose when you're level 60, it's We, when you are a lowly minnow then it's they .. In fact there wouldn't even BE a fish theme at all if not for having to come up with a term to describe the Massive impact of a level 70 Rep... the Whale came 1st, then the minnows

Look at my Blog i am a big supporter of Steemcleaners .. As big as a minnow can be !! YARR !

They are cashing out since the beginning and never stopped it
Specially during Christmas or end of the year to pay a travel or so.
Dan and Ned don't do it for the well being of humanity.
When money is involved, other stuff doesn't matter to humans.

did you not read the post they own 80% of all steam, that isn't decentralised, they control everything

Their intentions and plans are true. It is clearly shown in their actions to make the platform stable and secure, etc.
After all, there is a certain amount of risk in everything isn't it? It's everyone's personal choice to be involved in Steemit or not. I'm in. You make your own choice.

@tomaso88: I hope you see this as I can't reply directly to your comment due to comments nesting limitation.
They can't easily run off with everyone's money. 98% of Steem is vested, as in it's Powered Up in Steem Power. Even if they power down, it will take them 2 years to run off with all of it.

but the system is clearly not decentralised as they claim it to be, they can easily run off with everyones money whenever they chose to

I'll reply here as 6 is the most nesting you can do.
It's only the begging of Steem. It's normal that they hold the control.

If you choose to look at it that way yes they can run with the money and the story ends. But there is the other side of the coin too: They hold control and are able to keep the environment safe until it has grown enough to sustain itself as Bitcoin or ETH.

but it's not fair to users who are investing in real money at the moment when the current price of steem clearly won't sustain and will go down dramatically due to so much steem dollars being given out every day

Fluctuations are to be expected Tomaso. The Steem team has even though about a way to counteract inflation and they added interest on the money kept in the Steemit Wallets. See the white paper or posts that detail this subject.
Nobody is saying it's not risky. We're talking about crypto here and volatility is at home, but the actions the Steem team has been taking so far have kept things under control (security implementations, accounts signup pause etc.).
Like I said, it's everyone's choice to take the risk or not. I always say don't ever invest more than you can afford to loose.

This is kind of by design if you read the whitepaper "Setting Price Feeds" section - it basically says the system in incentived to exist at about $1/$1 I think.

https://steem.io/SteemWhitePaper.pdf

it IS a ponzi scheme. it looks like they are giving $, but it's just a monopoly money. if everybody stops playing, it would mean nada.

Have a look over this to get an idea on the minds behind Steem and Steemit: https://steemit.com/blocktalk/@blocktalk/blocktalk-steemit-s-ned-and-dan

Fine post. Nice to see I'm not the only one who thinks like this. Wetter you invest in the stock market, real This is quite an interesting website I found: https://www.coincheckup.com It's a great site that gives in depth research on every tradable cryto in the market.

@tomaso88 What are your opinions now?

my thoughts exactly

No rebuttal yet eh? SCAM!!!

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