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RE: Where does the money being distributed come from ?
my understanding is: ultimately, the value comes from people's belief on the Steem system that can generate values derived from people's interchange of ideas and thoughts.
But people are being paid real money, not some fictitious currency, you can actually exchange you Steem dollars to steem, and then to BTC and then to your local currency, that's what I find enigmatique
But all real currency are nothing more but papers or metals... it's the value/trust attached to it that makes it useful for exchange. It's the same with cryptocurrency or steems.