Where does the money being distributed come from ?
Earlier today, I was talking with a friend about steemit. I was explaining to him how people get paid for posting content, or replying to articles. And talking about steem and steem dollars (to the best of my knowledge), and about the interest being paid.
Then this question came up: But, where does the money come from ? And I had no idea what to answer.
Can anyone explain this to me.
Thanks
The money comes from inflation. Steem halves it's value each year because it doubles it's supply. Of course this is assuming it acts like a currency. Now 100% of the new currency is broken up two ways, 90% goes to people with steem power and steem dollars, and the other 10% goes to content creators. I believe this is how it works, and anyone is free to comment with their thoughts under mind. Thank you.
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.
The money is coming from me .... partly ;-)
I bought as did a lot of other people some Steem, that I transformed to Steem Power ... The value of things is given by the perception that people have of it ...
At the beginning one bitcoin was 1cent, now it's 600$, where does the money come from ? Same question
bitcoin, or any currency for that matter has only the value that people give, which "FAITH". Paper money or crypto currencies have no intrinsic value.
In the case of Steemit, they are distributing before cashing, in other words, they are giving what they don't have, and that can only have two explanations, either they have a money reserve, or they are running on the hope that the system will work and people will be buying Steem.
The money is generated this guy explains it much better than I could.
That still doesn't explain where the money comes from. There must be money available before you can give it away.
sorry, I've watched so many vids since i joined I must have confused links.I have a lot of bookmarks and it will take me hours to find the right one. so from what I've read and watched so far my understanding is this.
Bitcoin is generatedthrough the blockchain program, which is a giant open accounts ledger, when a computer is on the blockchain it is helping the blockchain run by running some really complicated maths in the background. this process is called mining and people who are on the network get rewarded for helping mine the bitcoin. (although there are so many people with massive server farms now the guy on a pc has no chance of finding some bit coin)
Steem is built using the blockchain programming but it's the actions of users, miners (people who dedicate lots of computer power) and steem traders all help with the creation of steem so all get rewarded.
hopefully someone who understands it a little better than me will come along soon.
Hey look, it's me!
Man, that's a strange feeling browsing through a random thread and seeing a picture of my own mug staring back at me. Hehehe.
As for where the new Steem Power comes from, that's explained in the white paper as part of securing the blockchain via the process of mining. As miners are rewarded with STEEM for adding new blocks to the ledger, Steem Power is also created at a 9:1 ratio which is then distributed to the content creators and curators in the system. As to what gives STEEM or Steem Power any monetary value, that I'm exploring in the #bitcoinpizza challenge if you want to join along.
instresting! nice posting