"Steemit is a Ponzi Scheme - Boycott NOW!"

IS STEEMIT A PONZI?

I came across a post on the cryptocurrency collectors club facebook group today which I would like to address here.

The original poster stated this opinion with nothing more than a tweet to back it up. I am a bitcoin lover and maximalist when it comes to bitcoin. I think Steemit promotes crypto and bitcoin in general so I am not against it unlike other projects which seek to dethrone bitcoin. Bitcoin is king. 

https://www.facebook.com/groups/cryptocurrencycollectorsclub/

Now he makes a convincing argument and I must admit that it has some things that most definitely be talked about. For one, I am glad he is bringing up some very important issues with Steemit that need more transparency. Either way, I see his direct observations are so from outside of the steemit economy so extremely biased as to compare it with Paycoin which offered nothing substantial in products or services. Steemit offers what Facebook and Meduim offer. Except authors are rewarded. I am watching some very good authors, for first time, making money writing about the subjects they love. Paycoin was a scam. Pure and simple. It did not produce a website and currency ecosystem which triggered thousands to partake. 

Value is in the eye of the beholder. FIAT is described as a ponzi. Bitcoin is described as a Ponzi. It's important to realize that value is completely created by supply and demand. If inflation is an issue at hand and the current checks and balances are not strong enough to check against it, then Steem and SBD will drastically fall in value. '

Here is the TWEET:

 10 of 44: I am convinced I was Scam'd into reading #steemit White Paper cause it's obvious no one else did, every page screams BS #steem - TONE

https://twitter.com/Tone_LLT/status/759577783542640640 

A few things I would argue with few things I would argue with this viewpoint which is fine if you want to boycott it or not... But I was very apprehensive myself when I first came across it. Mainly because I saw it take to storm the crypto community and everything that has a lot of hype and no discussion is dangerous. I am happy there is discussion and this is my view on Steemit NOT being a PONZI.

VIA basic google definition search:

 Pon·zi scheme
ˈpänzē ˌskēm/
noun
a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors. 

Steemit does not fall under this definition, period. 

Ten Reasons Steemit is NOT a Ponzi

1)I have made and continue to make money for content on Steemit and so do others who produce good content.

2)A ponzi scheme would require most to invest to get a return, not the opposite where many people will be able to profit over content they created with no investment except the content they created. 

3) It is open source. Ponzis don't have block chains where everything is searchable.

4)Ponzis offer no service or product in exchange for investment. They are largely anonymous in nature.

5) The voting system is voluntary and based upon what the consensus likes for content and not determined by the devs who trends or not.

6) The Steem economy has checks and balances to counteract inflation like steem power. But Steem Power plays off the human nature that one would rather have a voice to promote viewpoints they want to encourage. This is why I don't cash out my STEEM POWER.

7) I have come across such amazing content in and outside of the trending. I have learned a great deal about others who are less likely to write about themselves and experiences on Facebook. It has allowed me to open up and have people directly reach out to me and personally thank me for my content which is worth it's weight in bitcoin. It brings new people into bitcoin and cryptocurrency. It creates SEO and backlinks for subjects and articles that would not normally have a venue to do so.

8) Ponzis usually require marketing towards users bringing new users in so that they can get paid. This is not promoted at all by Steemit per se but by readers wanting to try what authors have been writing on. You don't get paid to get other people to sign up.

9) I read white paper myself, I need proof of claim from white paper that it is a ponzi other than a tweet

10)It is determined in value directly on the price of Steem and Seem Dollars and what people are willing to pay for them.th this viewpoint which is fine if you want to boycott it or not... But I was very apprehensive myself when I first came across it.

I think Steemit has brought the crypto community together while promoting cryptocurrency and bitcoin to people who have never used it before. If we are to look at the world's population use of cryptocurrency it may not even total to over a million people. That means we have room for 7000% more adoption. I say this experiment (which all cryptocurrency is at this point) is worth a try and if it fails it fails, if it works it works. 

So boycott all you like. Boycotting is the only freedom we truly have in this world and some would argue that freedom is slowly eroding. 

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Note: These are opinions and research of multiple individuals and my opinions are my own and not connected to anything outside of Steemit other than my own free speech.