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RE: Can You Explain How Steemit Earns Revenue to Pay its Users?
Thanks for your reply to mikebike's question which I very much appreciate as I have similar questions. The other answers above are really not speaking for the level of steemit- collaboration. Your answer can inspire me to even engage here as I find it very mysterious and un-understandable, the whole steem thing. It's not self-evident and even doing posts is somehow antiquated in comparison to other platforms. So why would I use this one when I have no idea if it works and if the dollars are nothing better than likes on Facebook?
Can anyone give me a convincing argument for the usefulness of this platform which would justify the initial learning and the extra work for posting?
Thank you
Heidi
You are welcome. I started 5 to 6 months ago. Made roughly $40 SBD which I cashed out when 1SBD was about $13 about 3 days ago. I cashed out after fees , a total of $457. So this covers the effort I had put into my blogs so far. There was a surge demand on exchanges which caused the price to spike up phenominally. It went up as high as ×20. The people who cashed out must have been celebrating. (Supply vs Demand I talked about earlier ;-) ).
Steemit is the first blogging platform built on the blockchain technology. What the tech allows is for a share of value although there are still problems with reward sharing on steemit as the system is flawed. One advantage of crypto currency, is that it makes it possible for people to get paid all over the world without restriction. Before many people were restricted from certain writting jobs as payment processors were not allowed in their respective countries. When holding Steem, SBD or SP (your earning) , it is actually like owning a share of the steemit blogging platform itself. If the value of the platform increases, the value of the currency will also increase. The crypto market is young and booming; it isn't much different than than the fiat exchange market except it is more volatile and is growing expontentially as more exciting projects are being deployed using the blockchain tech. Again, people buying these crypocurrencies are automatically tied to the company itself so of the project becomes a success , the value of the currency will increase significantly, at least double its initial in the longer run.
So the difference between getting paid in fiat vs a cryptocurrency is that you are rewarded with a share in the company who created that currency(digital) as opposed to fiat. The of value steemit will definitely increase over time as improvements are made and more people continue to use the platform. If steemut gets as big as facebook. The value of steemit is automatically shared to all its users via its crypto currency payment. And facebook, well no, not even if you were paid in fiat currency by facebook because you do not own a share of the company. So if you get paid $5, it will always be $5 ;-). With steemit if you get paid 5SBD , this be can worth as much as $100 ;-). This was the the case eithr lastweek or week before. Ok, I've wasted enough time here, let me gets to going!
Hopefully when I get the chance I can actually give a proper argument ;-).
Thank you very much for your reply and the time you took for it. I can understand it now much better although it still sounds a little strange to me. A little like needing to check the exchange rate continuously in order to know when it is best to change dollars into Euros (my case). I still wouldn't know what to do with the credit I could earn posting articles here, but I might try to do it, anyway.
It seems to be a little like Facebook where you need to be present continuously - which is not a thing I like to do: spend a lot of time on social media. Well. I will figure that out, too. My sister seems to be quite successful here on this platform and urged me to come over...