It's a simple answer because it's a simple idea, the money comes from people buying Steem.
No, it doesn't. You should go find the argument I had with complexring in the federal reserve math thread. Long story short, JL is right. Money comes from nowhere.
If you think anything is simple about the process of creating and distributing money, its because youve never had to do so.
TO be fair though, the creation of money is something that many people have trouble getting their heads around. Crypto types didnt help when they decided to call the creation proccess mining
no. steemit users don't need to buy more steem. but i will grant you that yeah, thats the current vehicle that brings fiat money in and out of the system but it not ultimately how its going to work.
Steem is a way to get fiat money in and out of the system at the beginning for early investors and adopters. But if this works the way I think they designed it to work, i don't think youll even need it at all except to fund a reserve.
I get that money comes from nowhere, these are just basic common knowledge, what are you trying to say? This is the same, except with fiat you have a complete system based on that debt generated. My opinion is that the demand to buy Steem will continue to decline as you are seeing now unless there's a constant influx from outside. Real fiat money enters and leaves the platform via Steem, that's it.
If you think Steemit users will continue to buy Steem so they can earn more in a infinite circle, well you are giving the Ponzi trollers some nice meat to chew on. That's why I'm mentioning that Steem needs constant outside influx besides speculators or casual investors. If you are a good content creator you don't really to buy Steem, you are already earning it. So who really needs Steem? Only speculators and long term investors but as inflation keeps growing and growing this can only go on for so long. There's no coin or project with more than 1 billion tokens worth above $1.