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RE: Does Steemit Have TSU's Same Fate?

in #steemit8 years ago

I think TSU didnt work because it was based on one currency, the us dollar and advertising.

Steemit works because of the value created and the value of a Steem token changes. The value of a dollar is more static. In other words the value of a dollar wasn't going to up, no matter how many people came to the site.

The more people that come to Steemit the more valuable Steem becomes. That's the difference.

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More people on Steemit = less curator rewards though right? However more people also means more demand with a fixed amount of Supply therefore the value should increase so the rewards could normalise.

That's a good way to think of it. Yes. The fix rate of Steem per day is fixed, but the value of Steem is not. Therefore if one time you earn 1 Steem, and on that day 1 Steem is worth $2, on another day you again earn 1 Steem, but on that 1 Steem is worth $5. That's a big difference.

Wow way smart! I didn't think of it that way! There is definitely more investment potential here.