STEEM — Where Does The Money Come From?

[encryptcy]

Comments

[baerdric]

I don't think anyone wonders where the "new currency" comes from. What they want to know is where does the value of the currency come from. As with all things, the value of a thing is the difference between how hard something is to get and how much people want it.

For instance, there is plenty of air, and sometimes people even have to close their window to keep the breeze out, so even though people really want air, it has very little value (high desire, easy to get).On the contrary, molten volcanic lava is really hard to get, but very few people want it very much (low desire, hard to get). The price of air and lava is so low you probably can't find people selling them. Food is vastly desired and it's kinda hard to get, so food has a value and is sold everywhere.

Steem is middling hard to get, but most people don't want it very much. The value is low. Bitcoin is fairly hard to get and lots of people want it very much. The value is high.

Two ways exist for new value to be applied to steem.

1. Have more people want it.
2. Make it harder to get, by improving the standard of content on Steemit. We can do this by only upvoting the very best posts. If people can earn lots of steem by posting their old porn stashes or copy/pasting YouTube videos, the value goes down.

[encryptcy]

Thanks man. Though I don't agree on your opinion, I respect it.

Cheers!

[baerdric]

Opinion?

[encryptcy]

It doesn't mean what is good to you is also good to others, nor what is not good to you is also not good to others.

Value depends on every person's perception. It's like Beauty is in the eye of the beholder.

[baerdric]

I didn't say anything about good or bad, I spoke about easy and hard. I don't care about porn or whatever (although I prefer my porn much harder than what passes here and I get much better quality for free)(there's a hint. I get it for free. Voting for porn is saying that votes are free = no value).

But porn and similar posts are easy to do. Just resign up with a woman's name, post a profile photo of a woman for whom you happen to have a large stash of free porn, and dribble it out a few jpgs a day. Make up lies about how "you" did the photo shoot with your lesbian friend. Folks will give you votes like it was cheap candy on Halloween.

If you pay top dollar for easy things, the value of the dollar goes down. It's not a controversial bit of knowledge, it's what every market in the world is based on. It's not an opinion, it's a statement of fact. You can either refute it or accept it or ignore it, you can't "respect" it.

I don't object to anything that someone posts, but you sell your vote for the value it holds. You can choose to increase that value by retaining it for posts which require effort, or you can choose to decrease the value by handing it out like candy. Like it has no value.

[fluffysmurf]

Nice video man.

[encryptcy]

Thanks. I just found it from BitSpace youtube account.

A newbie like me in Steemit should watch this video especially if planning to invest in STEEM.

[fluffysmurf]

I'm a newer newbie so likewise. XD

[encryptcy]

This steemit is cool. So let's enjoy! Cheers!

[matakasuari]

Nice video! Thanks.

[encryptcy]

thanks too.. you're welcome.

[melaimomagwork]

Nice..

[encryptcy]

thanks pretty..

[arthursen]

Good.

[samstickkz]

Thanks, that was a really simple explanation. Thou you sound like you were tired. Very informative

[bluerthangreen]

Of course it works! Steem is created just like USD, out of thin air! It only has value because we BELIEVE it has value. You and I can't create US dollars or other Sovereign currencies because that would be counterfeiting. They are created by private central banks and empowered by government Fiat. Crypto currencies are created out of thin air as well and empowered by the people. So instead of only 1% of 1% having free and clear access to money creation that power is now put into the hands of everyone.