Where are the money in steem comes from? Is been a lot of concern from minnows coming into the steem platform, they are more concern and ambitious on how the steem platform works and how they are able to pay the company provider.
There is basically three ways that you can think about how new money is created in Steemit .
1.) BITCON
2.) COMPANY
3.) FEE
BITCON: The first way to think of money creation in Steemit is to think like the way bitcon creates new money to pay for the minnows who secure the bitcon network. Bitcon has been in existence since 2008 and many people are sceptical with the system of creating new currency. Bitcon is now a 10B$ industry and Steemit aim to take this economic more by ensuring more currency to all users that participate in the social media network which we all call STEEMIT. So the way Steemit does this is; Instead of paying the new users which are the minnows who secure the network like in Bitcon, Steemit pays the people who post comments and upvotes comments.
COMPANY: Another way to think about the money creation in Steemit is to think about it like a company. A new company can likewise issues new stock to pay for workers and investors, steemit as its own currency called Steem and you can think of steem as a stock in the Steemit platform as we all known as blog , so when you hold the stock you are exposed to the value of the whole platform and the platform as a whole can issue new Shells to pay for the people who post and upvote post and comments.
FEE: My third analysis is to think of it like a fee on the users who uses the steem currency, the currency is diluted a little bit each year to pay for the new company and the money is taking from the people who use the steem currency. Like all salary earner who get their payout after a month , Steemit pays you after seven days.
I hope have trued in my own little way to enlighten the minnows on this fabulous platform.
Steemit cash is so real.
Keep steeming in , keep voting in and keep posting in.
Nice word @venikande
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