Steemit Secret: Bloggers are the new Miners 🙂 Where does all the money come from?
As a matter of fact, most of the newly minted coins on the Steem blockchain, namely 75%, are rewarded to active Steemians – just like you – who either blog, comment, or upvote (curate) content on Steemit.
If you are an active Steemian, it is legitimate to consider yourself a "Content Miner", which is kinda cool. And the best thing is, even by just consuming and upvoting popular content you can earn new Steem.
If you wonder where all the new money comes from, this is quite simple. First, all the rewards on Steemit are newly minted coins. This process is also known as money creation or inflation, which is currently about 9% per year, but decreasing by 0.5% each year until it reaches 0.95%.
You do not actually earn US dollars on Steemit but are rewarded by Steem and Steem Dollars. So the actual value stems from the underlying cryptocurrencies, which are one of the most efficient cryptos right now, and they are also actively traded on many exchanges.
Another stream of money comes from Steemians who are investing (buying) into Steem to hold Steem Power, and also Advertisers who buy Steem Dollars to promote their own posts on Steemit.
So to recap Steem has value because of the following 3 streams of money:
- Steem and SBD as Cryptocurrencies
- Stakeholders investing into Steem (Power)
- Advertisers buying SBD or Steem to pay bots on Steemit
The future success of Steemit depends on the adoption and growth of the platform and cryptocurrency and how the advertising model on Steemit develops. Remember that Facebook can make billions of dollars each year just by selling ads.
Live your Secrets and Steem Prosper 🔥
xx Viktor @vikisecrets
Well the thing is that we aren’t miners, mostly because we don’t confirm transactions. Though we do gain rewards generated by the system, since we don’t confirm and order transactions we aren’t miners. Really a miner’s main job is to confirm and order transactions, and being the gateway for more money to enter the system is just a secondary responsibility.
But, still, in a sense we are the Steem miners!
That's true, we don't confirm transactions but we decide who is getting which reward, which is also cool and similar to Mining where miners also compete against each other for the rewards 😉
I think the key is to stop thinking about it as money, it isnt money, they are tokens.
The fact that they're worth real money is what gives it value sure, but the money doesn't come from anywhere, they are digital tokens :)
When people realize this, they see "money" can be created.
Just like the good ol' fiat system - the value is in the eye of the beholder ;)
Nice post!
Great informations
Resteemed:)
Thanks for your work!
Thx for resteeming 😊
Give me some money....
Okay, upvoted 😄
This format makes my environmental side happy :) I and everyone else on here can "mine" Steem & SBD without using large amounts of electricity. Instead of the power hungry processors running 24/7 my fingers and laptop do the "mining" at a fraction of the pollution.
Yes, we are doing "proof of brain" on Steemit which can also be quite difficult some time 😆
Proof of "brian" maybe? If you get the reference 😂
great post and great article.
Yes i also looking about steemit as a way to mine cryptos
Yes, this is a cool interpretation 😋 We are the new miners 😄
I was not aware about the reduction of the inflation rate. If it is 0,95% only, wouldn´t that mean, that the reward pool will get much smaller than today plus to be divided by much more users than now? If the price per steem is not going up dramatically to compensate for it, this won´t fly! Quite risky approach, isn´t it?
Yes, decreasing inflation is an interesting mechanism, consider that more users would almost certainly mean more Steem value plus the general growth from the cryptocurrency market plus the growth from advertising. So if everything develops positively, this could even mean a much bigger reward pool per Steemian in USD than now despite decreasing inflation.
I think it is a good design Hun. Supply and demand. If the user base of the platform continues to grow, and the inflation has a downward trend, then the supply side will shrink in comparison to the demand side, hopefully pushing the value up. So even if there are few "dollars" per user, those "dollars" will hold a higher value. Those of us that get in early could see a sizable increase in the monetary worth of our holdings.
Great informations, at the beginning I was a bit confused, but with the time you know how it works
Steemit is really a cool and fascinating system 😄
Ich hoffe es kommt auf Dauer viel z.B. Werbegelder neu von außen hinzu, damit wir in Zukunft die Währung stabil halten können.
Das hoffe ich auch, deswegen bin ich auch nicht grundsätzlich gegen Werbung auf Steemit, da es diese ja durch bezahlte Upvote-Bots eigentlich eh schon gibt ;)