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RE: Are the whales turning Steemit into world's first cryptocommunist regime scaring away investors ?
Steemit is a completely capitalist enterprise. I know people think of crypto as democratic, decentralised, but Steemit is not it. It's a completely open free market - as far from communism as you can get.
Steemit can afford to reward bloggers for one very simple reason - because of a massive injection of long term funding from the whales. It's simple, that's how it works.
If Steemit were to be democratic, no one would be paid, or paid very, very little. It's just in the nature of the beast.
I do think Steemit can have more limits and balance though, but it's always going to have influential whales - the top 1%.
Actually I don't think they invested in anything apart from some cheap mining equipment, and then mined in the early instamine period before steemit was opened - all the "wealth" was accrued in about a month. Since then, users speculating and buying steem is what has created the price, and hence the value of the project.
Initially, yes. The money has to come from somewhere. But once it is famous money can get into it fast. Look at Facebook. It is a viable business model. But whales have a very big responsibility in making it work or not.
That's certainly true of the founders and the initial miners. But I meant on the long run - the goal is to attract people to invest in Steem Power.
they have to make it work for us who believe.
I think this is true in the short-term. In the long-term I think Steemit can still keep this scheme working. Look at facebook. It is a company making tons of money. It is one of the biggest company in the world. But it keeps all its gains for itself. Imagine what would happen if part of this money is distributed over its users ? ... That's what Steemit can become.
I really, really hope so. That Steemit redistributes some of the wealth.
If not, the problem with inequality is it can have a runaway effect. If uncontrolled, we could lead to a situation where 1 whale holds more influence than a million other minnows. I discussed this a bit here: https://steemit.com/steemit/@liberosist/steemit-s-achilles-heel-rampant-inequality