I don't get it, where does the money come from?

in #skepticism8 years ago

I just heard a couple of hours ago about steemit.com, but I don't get where the Money actually comes from.

There is no Advertisement and so on. So how can we make Money out of this? I'm just a little bit sceptical.


So who can explain me in plain terms how this works?

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It comes from the investors. When they buy shares in system the price go up. You get some of the shares in the form og steem. The investors are hoping to grow the share price by attracting great content creators.

The money comes from a mining and a similar form of proof of work, Curation and content creation which then distributes the new "steem" thats created everyday based on the steem power of everyones votes on the content.

Aside from that its just people who are buying steem with bitcoin that add's value to the system.

Check out the Steem White paper. This is popular in digital currency like STEEM and Bitcoin. https://steem.io/SteemWhitePaper.pdf . In Bitcoin, people with computers "mine" bitcoin and process transactions are rewarded with new Bitcoin entering the system. On Steemit, people who post content and interact on the platform are rewarded with new Steem Dollars and Steem Power. Just remember it's all software that runs on a network of computers around the world to keep it secure and fair. Check out this post for a more in detail explanation. https://steemit.com/steem/@steemrollin/steem-where-does-the-money-come-from

Perhaps another way to understand is by comparing to monentary policy, goverments print money cause its need to pay its debts. Steem creates money because the members who use it create value through thier blogs...

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