RE: Open Letter to all Steemians - Hardfork 21: Culture Change
The concept is that we use inflation to reward social media users, the way companies give out free pizzas.
As more gather others build things for them to do: SteemMonsters, Gambling, Silly Games.. You know the kind people play every day on Facebook.
Where people gather they begin to buy, sell and trade. (The Network effect)
Usually in investing the concept is to raise the value of the thing you bought.
Not drain the value in a huge ponzi scheme.
I get that most "traders" who like to call themselves investors don't really get the concept of investment. Which means... You put money and effort into something that is getting better so you can take more money out later.
By later I don't mean tomorrow. :)
While you can say people buy steem to vote for you that is an over simplified version. I don't blame you for getting stuck on it, because SteemIt Inc has done a terrible job of painting a vision.
It was never supposed to be the endusers who buy tons of Steem. Their presence is essential if you want the next steps to happen.
Anyway, have a great day.
Who are you? Who are we? Could you please explain why you and your friends are draining the value in a huge Ponzi scheme? Most of you didn't buy single STEEM, but that's why you know best what to do to increase the price. Do you think that everyday posting (shit) brings any value to STEEM? Your shit is better than mine. For sure. But what about others. You can't keep (with few votes) here any real author with that concept. You should have understood that by now.
I didn't want to shitpost here. That was my response to bots and "friendly users" which blocked my friends here. You should stick with blockchain neutrality. This is the only thing that distinguishes Steem from other social networks. I'm afraid it's too complicated for you. You crave power, so you have increased the power of down-voting. Mao Zedong would be proud.
Social media has proved to be the best business model in the world today. The FAANGs have proved this by exceeding the market cap of other businesses, and very quickly.
People interact and create society, and an economy is part of society. It is not the most important aspect of society, and extracting rewards isn't why most people use social media.
Extracting rewards by self voting, buying votes, and so forth, reduces the monetary value of the Steem token, because it extracts that social value before it can inure to the underlying investment vehicle.
Profiteering produces ROI, and before Steem it has long been the business model of outfits like Bain Capital, KK&R, and other firms that buy a controlling stake in a company and sell the assets of the company, profiting thereby. This destroys the companies they buy, but they make money, so it's all good from their perspective.
That's what is happening on Steem, but the forges and equipment of Steem are authors, and they can't be sold. HF21 is going to increase the incentive to profiteer on Steem, and further decrease the value of Steem. If we want capital gains, we need to reduce the incentive to extract rewards by self voting, selling votes, and so forth, allowing rewards to encourage creators and produce capital gains.
Mitt Romney would be proud.
People build websites and attract users every single day there are many models for doing it. This isn't rocket science or even anywhere near as hard as we were making it.
I was buying for a while and I also could buy more, I don't because of this... Too many stakeholders who think they can milk profits out without building anything.
Are you against the free market?
They just aren't real investors but wannabe short term profiteers.
Capital gains are reduced by profiteering. Warren Buffet and Bernie Madoff both made ROI. The former builds things up, and the latter destroyed them.
Exactly.