A few days ago i took a risk, without fully understanding the economics of the Steemit platform, and bought some Steem. Then I researched a little more about the inflation rate of steem and decided to power up to Steem Power. I have noticed it's giving me like maybe 1% a day return which is incredibly high.
I don't see any advertising so I am thinking the only way we'll get a current price for Steem in 2 years if we decide to power down is if a whole load new people keep joining the platform on an ongoing basis.
My question is: How is this not a Ponzi Scheme?
IMO steem is very close to a Ponzi scheme, but it isn't one.
I've been wondering, too, where the money for the payouts is coming from. Apparently steem does not produce monetry value. Therefore, in the long run, steem cannot pay out more monetary value than money is being pumped into the system. Up to this point, the Ponzi comparison holds.
However, it seems that steem creates monetary value after all, in the form of voting power. People are buying steem and powering up in order to increase their voting power. So clearly voting power does have monetary value, and this is where the monetary value of the payouts is coming from. Therefore, steem is not a Ponzi scheme.
In a Ponzi Scheme, money is taken from new investors and given to earlier investors. You don't have to spend any money to join Steem. You can just start posting valuable content and start earning Steem Power and Steem Dollars. The tokens have value because traders/investors are willing to buy them on the open market (for speculation, or to increase their influence on the network). Eventually we may see merchants accepting Steem tokens directly for goods and services.
So how is this not a Ponzi? New BTC investors are used to pay old BTC investors. How is any real value provided to the BTC investor so he gets tangible value from his investment?
also btc doesn't have a real value.
The value of btc is given by the fact that a community of people accept it as a measure of value, to make transactions.
For "fiat" currencies is actually similar
It's similar to a company issuing stock. The stocks don't have value until investors choose to purchase them with money. If people speculate that the company will become more profitable over time, the value of those stocks increases. If people see more potential in Steem as a Reddit-like service, they'll pay more for the tokens. Those who "invest" them as Steem Power (instead of speculating on them) earn interest, like a stock dividend. Eventually the tokens may actually purchase goods and services, because they represent valuable content, and can be used to influence the Steem network. It's quite an interesting concept actually :)
You can`t compare Steem to shares though. Only Steem Power and even there the comparison is sketchy. The "value" of Steem Power (and SBD) are determined by the market price of Steem, which is in turn only based on the hope that more people want to cash in than cash out. Correct?
https://steemit.com/funny/@fabio/not-sure-if-steemit-revolutionises
Who cares at this point? with people like this: https://steemit.com/money/@veerprit/steemit-money-is-real-you-guys
I read a good article about this on here the other day. Basically, you don't have to buy in. You could potentially just earn your steem & steem dollars.
I mean, well, it could still collapse, but a true ponzi would have everyone buying into it. Really, I think many are just investing time &a effort...
Fair enough, but my point being where is the money coming from to pay out to those who don't buy in and just earn, it's still from new money coming in.
If you search here you should be able to find better explanations than I can give.. Basically new steem is created daily, overseen by our all mighty witnesses..
The creators have looked deep into economics, Steemit is designed as a semi-ponzi scheme, designed to be LIKE a ponzi but not exactly like one.
If you think it's just a ponzi scheme, you are selling it short. Just like America, Steemit has a government of the programmer, it was built by programmers, for programmers, Look at the amount of money people are throwing at all of these new useless widgets and pretty girl programmers working on their doctorate at asian coffee shop university. I saw one post today where a comment that said their link didn't work... raised over 10 bucks! These guys need to get...you know!