RE: [STEEMGIG] Riddle Me This: Where are Vests Born? And, When do Vests become Valuable to the Community?
Restart :
Well, from what I thought I understood was that the system just generated STEEM into the pool at an ongoing rate. Since I couldn't figure out how to be a miner to create the STEEM, then I had to assume that there is only 1 real miner and that is the system.
Then, the question comes up, is STEEM just a ponzi scheme? Where the early users got all the big rewards and are trying to get the new users to vote them up so they can cash out big before it all crashes.
So, my curiosity is, if STEEM is a ponzi scheme, is it worth it for me to continue to create articles or do I just try to play the came.
If STEEM isn't a ponzi scheme and the rewards pool drained heavily after HF19, what would happen if the pool did actually drain completely?
If it drained and then they just added 1 million new STEEM as a lark, then I would think it would devalue STEEM and nobody would trade it. Which would be back to me wasting my time here, unless I could cash out before the whole thing collapsed.
But, if some how I had a better understanding of how it all worked and understood what was the best way for everyone to act, then I could start spreading the word and try to convert everyone into doing what would be best for all in the system.
well I know some of these answers. let me see ... I think I'll make individual answers so we can track things out a little better.
we will have to work on documenting sources but let's get some overview out and done.
We are all currently "mining". The STEEM blockchains are every move we make ... just like in the song lol ... they'll be watching you. every word, every transaction. And every image and ... every move we on the apps. because the apps are built on top of the steem databases and probably more that I don't understand.
so every post, comment, vote, etc etc generates STEEM.
so being good bloggers and visitors who comment is HUGE impact. Without us working the economy doesn't grow. BUT it doesn't shrink either. Minnows could stop coming in tomorrow and all the current minnows could stop working. And all that would technically change is that there would be a fewer number of tokens for a fewer number of active people.
I mean think about it. If we don't work, we're just not generating income for ourselves. That doesn't mean a whale can no longer create STEEM or that the whale would have less STEEM
But, if that were the case, then as the number of posts increase, so should the amount going into the Rewards Pool, but it is constant compared to the increase in posts. The fluctuation of the STEEM seems to be affected more by the price than by the numbers of posts.
This is where we need the white paper and a diagram I keep seeing floating around in my head. I keep thinking it was in one of the posts you linked to.
I'm sure some searching will pull up more than one wisecracker that attempts to explain this.
A ponzee scheme requires that new money be brought in all the time. And it has to be enough money to support the lifestyles of the rich and famous who got there first.
Frankly, I have yet to meet even a small dolphin who is interested in my .03 100% upvote. Frankly, not even a true minnow cares that much about my upvote on the post.
There's only 2 kinds of people who really love my upvote. Like really realy love, appreciate and benefit.
The first is a person who has a lower reputation than I do.
The second is a person who has like less than $2 on their post. The ones that really benefit are the ones that have no commenters, less than $1 and are lower in reputation.
They are the ones whe really appreciate my company.
When it comes to the dolphins and whales, I'm just so much noise in the middle of so much noise. most of the time.
If the post topic is one that my years on planet earth bring an advantage to, then maybe my comment is heard by the dolphin. But certainly my .03 and my upvote in the middle of 100's means nada.
Again, If all us minows stopped contributing. The system goes on without us.
There would be fewer STEEM but there's fewer people expecting STEEM. And the people that are still in the system can just gear up and make a little more STEEM, if they need it.
So, no. Steemit is not going to die off like a ponzee scheme.
There is money flowing in as some large fish have been encouraging little fish to buy into the system. Because they tell them that they need to build up their SteemPOWER to be a whale like them. Also, by bringing in a larger community, it makes the value of the cryptocurrency grow.
I just read an article about how anyone could start a crypto, because the code is open source. The issue is creating a community in order for the crypto to grow.
If you look at those who joined last year, you will see that their first posts earn $1000+ So, all of those people who first joined have the most and then they get the most because they have higher VESTs. If they can get STEEM to break $5, then they will be swimming in some real value.
There was a huge power down that happened when STEEM hit $2 early this year. And that's about the time everyone was saying it was a Ponzi scheme, because the founders and the small percentage of early adopters had the majority of the STEEM.
I know I said I wasn't going to touch Steemit today but I can't stand leaving you in such a dither.
Make a list of all the things that would happen to you over the next year if you brought in 500USD today and powered it all up.
Ideally you will start by diagraming out how you will bring STEEM in when you use your 500 USD to buy a tradeable currency to "create" STEEM ... ;-) EDIT {This step is optional as it no longer makes sense to me. I'm going for coffee now}
Then list out all of the following. ..
How would you profit/benefit?
How would other people around you profit/benefit?
How much of that powered up money would you immediately or eventually transfer to a whale?
How much would you lose to annual Steemit membership fees? ;-)
What would happen to you if your STEEM became 5x more valuable?
What would it take for you to lose your 500USD in the process?
If you get stuck listing off your profits, benefits, fees, expenses, and risks, find some minnows who did power up enough to become whales or even dolphins and see how their power-ups are affecting them really. I do know at least one of each does exist.
Since this is happening so much, surely you can find some newbies that skipped the painful red fish stage and interview them.
I look forward to hearing what you discover.
$500 investment in steem
Pros
Cons
The big fish that got in early, got all their Steem for free. They didn't pay into the system, they all upvoted each other $1000 or more each article. The instantly had the ability to adjust their upvote. They were able to make $50, $100, $500 per upvote on their own post, while only upvoing other posts small amounts. Small fish trying to curate increase the big fishes already big upvotes. The big fish get richer quicker, while it takes the small fish longer and longer to make any money.
Look at https://steemwhales.com/ The first page shows you that most Whales are inactive. Click through the pages and see how many are powering down. When you get to #100, you'll find someone powering down, who currently has 175k SP and has made 50+million in post rewards and 7+million in curation rewards. You'll see that person not keeping any STEEM, just transferring it out into another system, which others have called a scam and if any small fish try to post that other method, they get their posts flagged. Things like that make you wonder about the system.