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RE: So I sat down with a friend and told him a bit about steemit

in #life7 years ago (edited)

Hi, I'm also very fresh in steemit.
I think it's easy question.
Why sould we waste our time in social network (like facebook) that gain money from our activity but don't share profits, while we can do the same thing and also gain from it.

Indeed, there's a lot of problems in steemit. It's still not so comfort like facebook and etc. But it's the future, and if you will be there first - you gain more, I think...

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First of all, thank you for the willingness to help. One question i had was where does steemit get the money to distribute to us for just posting? Thanks.

@halsadi
Plain and simple: inflation.
Basically what happens is every 3 seconds a block is added to the Steem blockchain, and with (if I'm not mistaken) 2 Steem units are added to the reward pool, as more content gets upvoted the reward pool gets depleted, and as more block are added the bigger the reward pool gets. It's basically a question of which of those procceses happens faster.
You can track the reward pool on steemd.com to see how it fluctuates over time

THEY CREATE THE MONEY!
And because it has a demand - It has a market value.