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RE: Is Bitcoin a Ponzi too? A Simple Explanation about Where Does Money Come From for Dummies

in #steemit8 years ago

It's fundamentally a matter of the magnitude of dilution. When all Bitcoin is released, the dilution rate will be 0 for holders but Bitcoin users still pay to miners (= redistribution).
STEEM has much higher dilution rate than Bitcoin, but Steem Power has similar numbers to Bitcoin or sometimes Steem Power holders can additional gains (when Steem Power pool share is below 90%). That is, with halved value of a unit of STEEM, Steem Power holders will have around doubled amount of STEEM so that the inflation is offset.

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Not to mention the demand for Steem will pretty much grow as the network effect is stronger here. We have high profile people constantly joining us, together with many youtube stars and bloggers.

The demand for Steem in my opinion will only rise, and with this pace we will become a rival to existing social media giants pretty soon.

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