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RE: Why Steemit isn't Ponzi scheme. [3 minutes read]
If he cashes out at the right time what will happen is that the network is going to growth in a democratic manner, without a few accounts holding most of the steem power.
This would mean that the "Steemit Project" has produced a new social network, a new cryptocurrency and a new market. In this case it would be absolutely fair for all the people who worked to startup this project , to gain a decent amount of money, dont you think ?
I don't think you understood my post. In your example, where it is already assumed and established that a ponzi scheme has taken place, you allege that the fellow responsible would stand nothing to gain by running off with the cryptocurrency because it would become worthless.
This is nonsense, as "Running off" with cryptocurrency entails converting a large amount suddenly to USD. It is then devalued for everybody else, but that's not his problem as his wealth is now in US dollars. This has in fact happened a number of times with cryptocurrencies and is more commonly called "hype n' dump".
Ty for your better explaination. I believe that in this case an "hype n' dump" will not happen thanks to the Steem Power downpowering system, that requires 104 weeks, and thanks to the fact that there is a real value at the base: this same tool me and you are using to communicate.
Also if someone runs away with dollars, selling steem to someone else, the social network, and the Steem currency will continue to exist.
In other words, we could even hope that at a certain point some user with 2.000.000+ Steem Power will "run/give away" at least with a part of his Steem Power, if he thinks that in this way the network would be more balanced
perhaps.. but there are probably over 100million steem power in the hands of the largest accounts. Even a two week power down could produce a windfall worth several million. I'm not saying i think steemit is a ponzi scheme. Just that your "proof" that isnt real proof.