According to EOSGO update, Daniel Larimer, the CTO of Block.One criticized steemit for not finding a way to generate revenue. Here's what he said:
And you know what? I totally agree with him. The problem isn't the 2 million dollars required to run steemit.com and api.steemit.com node. The problem is that steemit.com isn't generating 2+ million in revenue.
Steemit.com could have generated that much revenue very easily with ads when it was ranked in the top 2000 websites in Alexa.
Ned stated that after cost cuts, it will cost around 1.25 million to run it. But even though steemit.com has lost a lot of traffic, it can still make profits according to the estimates of hypestat:
steemit.com receives about 293,025 unique visitors and 902,518 (3.08 per visitor) page views per day which should earn about $3,726.44/day from advertising revenue.
Estimated site value is $2,057,342.71. According to Alexa Traffic Rank steemit.com is ranked number 3,736 in the world and 0.0208% of global Internet users visit it.
If we assume these stats are true, then steemit could make around 1.36 million dollars of revenue in a year (which is higher than the operating cost of 1.25 million).
But I don't believe these stats are true. I am confident hypestat's algorithm is grossly underestimating the site value of steemit.com and how much it can earn per day.
Steemit.com is mainly a finance focused website. Generally, ads on finance related sites are 2x to 3x costlier. I hope this gives my readers an idea of how much money steemit.com could make.
Steemit.com isn't going bankrupt because it doesn't have value but because of mismanagement. That's exactly what dan highlighted in his comments. And that is why I agree with him. I hope Steem Inc will add advertising to the site to make sure it is sustainable and profitable.
In many ways, Steemit came into being during times where everything was going up, up, UP and that also made it a time where people were too busy thinking about their new Lambos and not busy enough to work diligently to build a solid structure.
It set up a certain cognitive blindness in which "making money" was just about the token Mooning, and not about generating actual revenue streams. And revenue streams are the only thing that will save you in a market downturn.
True but most crypto's have that problem. They raised a lot of money by just publishing a whitepaper. Now they need to do actual work, the times of easy money are gone.
I would agree. There are numerous issues that make steem so much less than it could me. Mismanagement is a great way to say it.
Once steem runs without steemit...it will be what it was meant to be...steemmonsters is saving steem right now.
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And don’t forget Partiko too!!!
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The app is badass
I totally agree!
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Yes, Steemit isn't dying as much as it is being killed by consistently poor decision making by management.
This person is probably instrumental in figuring out if advertising is possible:
exacto me gusto tu post, sigamosno
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I couldn't agree more. They need to make revenue like every company does. No company can survive if they make no revenue. Placing ads is one of the best ways.