Steemit does't make sense!!!!
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Ok we all know that the basic idea of steemit is awesome you get paid for original content, though if you invest a significant amount(20-100k) of money you could break-even in few months. However, if we do the calculation it seem OK at first as long as the
New investment+the exchange market(people who store steem not SP) = to the amount of the steem offered (people cashing out )
as long as the first part of the equation equal or bigger steemit is fine, but at some point people cashing out will be the majority
and steem value will only go down as there is no traffic revenue (yes there is the promotion section but that around 10k$ at best )
average Whales get's 30k$ a month Jerry Banfield just release the steemit revenue if you wanted to make sure
Now the solution is clear but it actually require a compromise
1- partner with a centralized ads company
2-huge part of the revenue will be saved as Bitcoins to potentially connect steem price with bitcoins
3- another part will be to advertise steemit on another platforms
4-last part will be changed to steem and kept in a vault account (this will add value to steem on the long term, because this vault will never be cashed out
I feel steemit works best as a long term blogging investment that supplements you're needs to whatever extent you might want to push it as an individual. Like say you put in this initial investment of say 10 to 20 k. You now have an extended potential to continue acquiring steem once you break even. This is all assuming the price doesn't crash as you hinted towards. Thanks for sharing , good read
Price won't crash as long as there is enough growth AKA enough new investments
Interesting post
I also wonder the longevity of Steemit.
the user base is growing (good) and so the content is growing (good) however the quality of content is degrading (bad).
As people start focusing on quantity rather than quality, I fear the future for steem will not be so bright.
There are more and more youtube posts with one or two words or no words sometimes... hoping to make people laugh etc with non original content....
Something needs to change...
Interesting although I feel the vats majority of people won't cash out for at least a year or so of starting if they want to see any good returns...
Secondly the growth of steemit right now is miniscule (beta) so we can't really judge the longevity just yet.