RE: How-To-Steemit! A Guide for Newbies
From what I've gathered so far, Steemit is all about the money.
People create content and share it on this platform, and instead of the platform making money off of the content and curation, it's the content-creators and the people who curate it who get paid.
Please tell me if I'm wrong, but the point of Steemit is for people to share information and those who create content which people find useful, they get paid. And so do the people who voted for said content.
There's no higher purpose?
Just write useful stuff, and you'll get paid if it's helpful to others?
I am curious to see if there is real cash value paid out on July 4th, as this all seems too good to be true.
I'm still trying to wrap my head around this, but it is a new way of relating to the world, so it's no surprise that it's a little hard to grasp.
Thanks for your help, folks!
Please feel free to keep the insights coming.
Be Well!
Right, so where is the money that is being paid out in real cash coming from? Is it from the capital of outside investors? How does Steemit make money?
That's a great question and I'm still trying to work that out myself. How exactly does the site earn revenue to pay out it's users for posting content?? Can someone please explain that to me in a crystal clear way I can understand without getting cryptic about it! Please? :)
Don't ask and don't tell probably is the best answer. It is still foggy to me but from reading the White Paper the way I understand it is there are three currencies which somehow feed off of each other. Correct me if I'm wrong here but Steem is inflationary by 100% per year. Steem Dollars are tied to the US Dollar, and Steem Power is inflationary by 10% per year but you can't sell it for two years. So users who hold Steem basically pay a 50% tax per year that could be used for payouts. Steem Power sounds like a fractional reserve system where you pay 10% interest for the privlidge of letting them hold your money for two years. It sounds basically like a jackpot system from what I can figure. You pay into the system and then post and hope to win the jackpot. My biggest concern is how is the Steem going to continue to double every year? That does not sound sustainable to me. Don't get me wrong. It's brilliant.