let me explain why you cannot get rich in steemland and why steemit is not a get rich quick scheme

in #steemit8 years ago

Steemit is funded by steem a cryptocurrency that 'decays' away as new steem is "mined". So to make up for this loss both steem power SP and steem dollars SBD attract interest. However steem does not gain interest, your options are four fold for steem; trade steem inside steemit, pay it to someone else, let it 'rot' away or convert it into voting power.

Put another way the worst thing you can do with steem is to not use it and let it rot or decay away, since it gains no interest payments. Thus it need to be converted into SP usually and to 'power down' SP takes 104 weeks or two years. This prevents fast cash outs and huge instability ; thus no one can "get rich quick"...

Let us consider a whale with 250,000 SP ; if they stop using steemit then that value in real money dollars remains at todays value since all accounts gain interest on SP. However the 'decay' means their account is effectively frozen for the 104 weeks to power downand sell their steem. Other steemians keep earning NEW steem that is data mined so the whale slowly loses their massive voting power since other lower accounts slowly gain more voting strength as steemuniverse rewards by remaining active within steemit.

So at the moment the whales cause huge swings in voting strength, but every vote they cast rewards another steemian ; so while they themselves earn new rewards over time the entire website membership slowly gains greater SP and more effective voting rights. If whales do not vote well and regularly their accounts will slowly lose SP voting strength or their reputation will cause their account to become less influential...

Thus we must work together to cooperate and have fun and make steemit attractive to outsiders so it continues to grow and develop so all our steem membership shares portfolios have increased in value over the next few years. Personally I love the fact others actually occassionally stop and follow my message here on steemit, occassionally I even make a few cents : )

/ hugz ; )

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