What is Ponzi Scheme?
A Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities. Operators of Ponzi schemes can be either individuals or corporations, and entice new investors by offering short-term returns that are either abnormally high or unusually consistent.
Companies that engage in Ponzi schemes focus all of their energy into attracting new clients to make investments. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.
Source:http://bit.ly/2soyIKz
Are you thinking what am thinking now? My money is at stake at that so called site that claim to pay me 200% of my capital in 30days.
Well, Just relax and finish this post before closing this page. Now here is another question. Am I safe in Steemit?
What is Steemit?
Steemit is a social network that looks and functions a lot like Reddit, but with one HUGE difference; Steemit pays both the content creators when their work gets upvoted, as well as the people who curate the best content on the site by upvoting others work.
Source: http://bit.ly/2rmP0Dq
Now you are a bit relief . But did you know Steemit was launch just 2016 here. Now see how promising the social site is becoming all over the world. Now I must tell you since I joined Steemit my activities in other social sites has dropped drastically.
Now for those asking if Steemit is a Ponzi scheme, take a look at this table and see some key points iterated:
I know you are already asking where does those huge pay come from in Steemit, relax I will break it down to my best knowledge.
Well in Steemit everyday out of the 100% mined steem 10% is allocated to posts that has upvotes , curation, comments. While the other 90% is shared to those with steem power.
But in Ponzi scheme there is no reward coming from the initiator pocket else new participants payout existing once.
Conclusion:
The question is why should I involve in Steemit and not Ponzi?
Ponzi's are fraudulent and are not supported by the financial bodies, but Steemit is a social platform where you go on with normal activities but endup earning yourself for traffic created with your contributed posts.
Food for thought:
Thanks for reading this post.
Is really not about getting upvotes in this post but is something everyone the community need to see. So do the needful by resteeming this post, Thanks.
Please upvote , follow and resteem thanks
@smilexyz03, I really the content of this post. My contribution would be that I don't think Steemit is government approved like you stated in the table. Upvoted and resteemed post. Well done!!!
@maryfavour maybe the right word wasñt used, but what i actually meant was the legality in the currency steem and the operational policy to operate as a social community for users. Hope this help
You shared the thoughts of many.
Yea..people are getting it wrong due to lack of good orientation. Is good you reasoned with me in this. You can resteem for your follwers . thanks
What did you mean by this?
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Thats a typographical error .. Is supposed to be . "now you are a bit relief"
I said that because in the previous paragraph ..steemit was explained and justified as not being a ponzi scheme
"Relieved" would be the correct past tense usage.
You did not address how steemit is able to pay both the content creators and curators which is what people are probably trying to figure out. As, I mentioned in a short article I just wrote titled "Steem It to Cryptos"; Id expect that any company paying content creators and curators for social activities even while generating millions per year in advertising (funds coming in) ; would inevitably go bankrupt or crash in just a few months.
Click read more in tge post or wqtch this video it will help
Thanks; I was not really asking. It would have been nice if you discussed it in your article. Thanks.
nicely explain thanks @smilexyz03
Thank you very much. Youbcan resteem @viralcutz
Great post :) keep it up
Thank you sir. Please you resteem @road2wisdom Thanks