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RE: Steemit will become mainstream in this "age of social media"? Yes, it will! Here's why.
The incentive is odd, because it gives you more voting power if you vote for yourself. The only other power one would gain is "power" with stronger votes, and/or the hope the price and demand goes up. Personally, I am willing to invest my gains, but I am not yet at the point I would take money out of my pocket and invest it here. I am open to it though, depending on where things go.
Ok, I appreciate your openess. I actually bought and I am somehow amazed how many people claim to be super optimistic for Steemit, but not enough to actually invest. Without investors, the show here won't last very long, imho. I was hoping advertisers would pay for visibility, as they are used to. But I don't think anyone will pay to be put in that little "promoted" box no one actually cares about. It's easy to want an "ad free steemit" AND "free author rewards" AND "no personal risk". Not talking to you here, but I'm actually growing more and more pessimistic, due to all the discussions I have on that topic.
Hey Fabio!
So – Steemit is not paying out to its users and losing money. To my understanding the way that Steemit works is that the currency STEEM is created through the block-chain algorithm similar to Bit-Coin or Bit-Share. No individual user is paying another user. The block-chain algorithm creates the coin reward or STEEM based on the up-vote and voters associated with the up-voting. The simplest way to think of it is that the coin or STEEM (which is a crypto currency) is created the same way a company issues new stock to pay for debt or the Federal Reserve issues new currency (inflation) but it is not a user issuing the new STEEM to the market it is the block-chain algorithm. I personally think it is “smarter” to do what you deem works for your risk tolerance but I personally would not just “cash-out”. The long term vision of this platform and the users who are invested long term, if and when, Steemit goes main stream will be able to really cash out. Just ask early Bit-Coin investors who were smart and now are “paid”.
It is highly possible that advertisers will adopt the Steemit platform once it is truly mainstream. Also, theoretically if you are a "powerful" user you can be sought after by advertisers to promote products (this actually happens with the most popular users on YouTube, Instagram, Facebook, Vine Tumblr, etc.) Keep in mind that the Steemit concept is new to the public and is the first of its kind released to the public. There are different types of users - not just the traditional crypto currency investor/trader. The fact that Steemit is based around a social media concept will only attract more individuals who are new to crypto currency and because of this not every user will understand the concept of investing their gains back into the “system” or their personal cash.
Hi Fordmogul, I understand all that and tend to agree. The comparison to Bitcoin is tricky though. The idea behind BTC is clear: to be a monetary token or even better: just free market money. One way to assess the sucess of Bitcoin so far is its price in US Dollars. Because that's also the thing that makes people happy who bought in early. Or how many BTC Fans would we have if we'd still have to pay 10K BTC for two pizzas? So now compare that to Steemit. What in the Steemit econosystem would you compare to BTC? The Steem token with 100% yearly inflation? Don't think so. Steem Power where you simply get enough while holding to be protected from dilution - but which is still priced in Steem/BTC. Not really comparable either. SBD? Well, kind of comparable, but backed by Steem, so not really either, because you need a price above zero to "back" SBD and you have to have some other uses for Steem, not just backing SBD or you get the same problems as Bitshares/BitUSD. I agree there might be potential if Steem Power becomes valuable to advertisers. I disagree that the price will magically jump just because we have reached a certain amount of users. That might be enough for luring in all the people who think that way, but no serious investors or advertisers.
Hey fabio!
That's a great question and viewpoints! I responded with a new blog post and featured you as the user who asked the question ...check it out: https://steemit.com/steem/@fordmogul/how-many-people-find-steemit-to-be-an-awesome-idea-and-have-a-desire-to-invest-or-join-but-are-not-convinced-understand-the
Thank you,
Ford Mogul!
Hey Whatsup!
Well the fact that power is increased or decreased as a result of the Steemit community "favoring or not favoring" a user's added content/contribution is a good thing because users who invest in the platform by creating content for other community members to curate and or investing their personal cash repeat the benefits in the long run as their power and value in the platform increase. It is highly possible that advertisers will adopt the Steemit platform once it is truly mainstream. Also, theoretically if you are a "powerful" user you can be sought after by advertisers to promote products (this actually happens with the most popular users on Youtube, Instagram, Facebook, Vine Tumblr, etc.)
I think investing your gains and choosing not to invest out of pocket is just another investing strategy – a prudent one and is not a bad strategy in any way. You have to invest with a risk tolerance that works for you.
Hey,
I agree with everything you said. As someone who came here with the intent to invest real money, I guess I wonder how many others find this to be an awesome idea, and have a desire to get in, but are not convinced. See you around SteemIt! :)
Hey whatsup!
That's a good question! I responded with a new blog post and featured you as the user who asked the question ...check it out: https://steemit.com/steem/@fordmogul/how-many-people-find-steemit-to-be-an-awesome-idea-and-have-a-desire-to-invest-or-join-but-are-not-convinced-understand-the
Thank you,
Ford Mogul!