STEEMIT: Where does the Money Come from? Thin Air?

Here's the Answer.... :)

There's been a lot of Concern from Users coming into the Steemit Platform...
They're Suspicious about how this platform works...and they're Wondering how is the platform able to payout so much Money to the new content providers...

So there's basically 3 Ways that you can think about how New Money is created on Steemit :)

BITCOIN:

1st way you can think of Money Creation in Steemit is to think of it like the way Bitcoin creates new money to pay for the miners who secure the Bitcoin Network.
So the way Bitcoin pays its miners is through issuing new currencies , it issues new Bitcoins every 10 minutes and it pays this to the people who operate the network , the money is basically created out of thin air but according to a certain algorithm.
The people who participate in the network and secure the network get this reward.
Bitcoin has been in existence since 2008 and many people were skeptical that this system of creating new currency and paying the people who sustain the network would actually not work as an economic system but in the last 8 years Bitcoin has proven that this system works.
Bitcoin is now more than a 10 Billion Dollar industry and Steemit aims to take this economic model of issuing new currencies to the users who participate in the system and apply it to a Social Media Network.
So the way Steemit does this is , instead of paying the miners who secure the network like in bitcoin , Steemit pays the people who Post,Comment and Upvote content.

COMPANY ISSUED STOCKS:

Another way to think about the money creation in Steem is to think of it like a New Company. A new Company can issue new stock ( Basically created out of thin air ) to pay for Workers,Investors and stuff that the Company needs.
So Steemit has its own currency called Steem and you can think of Steem as a sort of stock in the Steemit Platform , when you hold this stock , you are exposed to the appreciation of the value of the whole Social Platform and the Platform as a whole can issue New Shares to pay for the people who Post,Upvote and Comment on Content.

FEE:

The 3rd way to think of Money Creation in Steem is to think of it like the Fee on the Users who use the Steem Currency.
The Steem Currency is basically Diluted a little bit each year to pay for the New Content and the Money is taken from the people who use the Steem Currency or speculate in the Steem Currency.

@robinmathew