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RE: Where DOES the money come from - Steemit
I would explain it with growing fruits. The apples on the tree and the strawberries in the field cannot be exchanged into money. But when I harvest them I can sell them. I created value. I can produce marmalade or juice and the value becomes even higher. Isn't it the same with contributions such as photos and articles?
This is a great analogy -- but you are creating revenue by selling your fruits to the outside community and if there was not outside community you could sustain yourself on what you grow. Problem is words and pictures cannot be eaten, they must be sold. So outside revenue on Steemit is required.
Example I used elsewhere:
If 10 steemers are in a biospere and they have 300 meals, it will last 100 days at 3 meals a day.
If they let in 10 more steemers in and they do not bring any food in, it will last 50 days.
If they give some of their food away to advertise for more steemers on facebook and the steemers and they do not bring in any more food in -- there is real problem.
Steemit is working and will continue to work as long as the new users (and current users) bring in food from the outside (purchase steem power by continuing to power up), which may be plenty long but not infinite.
An outside revenue source must be developed -- perhaps FB will pay steem someday.
See @bycoleman for a pretty lively discussion on this.
Thank you for explaining this so clearly for an old girl trying to understand... @hidayat4u's article is really hard to comprehend for me. A vision with FB coming to buy in here is a bit disturbing. Sooner or later Steemit would be another FB again. And we just left it for more quality and freedom... Will visit your blog now.
Thanks for the great comment.
Yes, I agree with your -- one way or another we will see some type of advertisers - either display adds or possible the new SMT that is proposed. Both will change Steemit and possibly not for the better, yet they may have no choice.