The Gospel Of Digital Assets

in steemit •  3 years ago  (edited)

Where does the money come from?

When trying to explain Steemit to others, I often encounter a reoccurring question -
“Where does the money come from”?

When you think about it, we should be compelled to ask such a question, especially since most of us are accustomed to thinking in “old world” monetary terms of the FIAT economy.
I find that this is often a hard point to get across.

Zero sum game

In the FIAT universe, generally speaking, if you got paid for something, it had to come out of someone’s pocket. Somebody had to pay.
Hence, If we exclude the monopoly certain entities have on “money creation”, we can think about the FIAT economy as somewhat of a zero sum game.
In the crypto universe, new technology enables and facilitates the creation of economic micro-verses, in which trade-able and fungible currencies (= digital assets) that can "communicate" with the blockchain, are seemingly created out of thin air.
Furthermore, If one succeeds in creating a useful and trustworthy digital asset, the asset may become popular and gain public trust (much like FIAT or tangible commodities), which in turn may lead to high market liquidity.

Non-zero-sum

In my humble opinion, here lies one of the greatest novelties of digital assets and the crypto revolution -the ability to quantify (in monetary terms) any form of activity or ability, in a “non-zero-sum” fashion.
In the Steemit micro-verse, this ability is obviously content creation, but it just as-well may be anything.
The revenue from each post does not directly come from anyone's pocket.
Rather, It is "generated" by code.
In other words, no one has to lose his Dollar bill, in order for you to gain yours.

Has this ever been possible before? I think not.

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Excellent read my friend.

Thank you very much.

Love the picture and great points about non zero sum.

Much obliged Doc.

It's tough to rap your head around the FIAT system but once you do it's pretty easy. The hardest part is to have a general conversation with someone and show value. Of course the first question is 'where does the money come from' still tying it to something they can touch and feel.

Yes I use the exact words in your title when explaining to people. Digital assets have value because they're unique and scarce. They can have significant value when they are unique, scarce and popular. That's the messaging I repeat with everyone.