Where the heck does all this money come from? Steem Noob obviously
This is naturally a crypto-currency crowd. I get the principles of bitcoin but this steem still baffles me. Is it more like an allocation of add revenue? how can they know what the ads will be worth until they start advertising? We all have our 3.50 for free but upvotes don't cost anything so so we are all buying approval for nothing. Who pays the bill if we all cash out after beta ends? Also where is the incentive to approve of unpopular ideas? This just seems like manual public opinion predicting so far. What am I missing?
Steem is a cryptocurrency used to bootstrap development and incentivize participation in the Steem platform. A portion (~10% I believe) of the currency's inflation is dedicated to rewarding community members for content and curation contributions. Those rewards are determined by the votes cast by existing Steem stakeholders. People who vote up, or curate, new content that later becomes popular also receive a portion of the post's proceeds, which again, is allocated out of the currency's inflation.
Whereas Bitcoin rewards objective proof of work in the form of computing power, Steem, in part, rewards subjective proof of work in the form content evaluation by the Steem community.
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oh ok so Steemit is like the R&D dept of a larger system. So all of this is really intended as a way to gather good ideas for the overarching system? its paid out of pocket from the investing stake-holders because they intend to profit from the other facets of the greater system. (I keep thinking of Ether, is it similar?) but to sift through all the ideas we upvote and downvote eachother to compete for a greater slice of the bounty. So even though someone here might enjoy my posts about sports, pop culture or unicorns and vote for it, it won't bear the same influence as these 'whales' who start themselves out with massive steem aka their investments. But hypothetically, If I wanted to hijack all this I could pay cash for steem and throw approval around at dumb ideas but that would be cash out of my pocket and into theirs which is kind of like paying damages anyways. Am I getting warmer?
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It may be a little too much information, but it's all in the whitepaper.
https://steem.io/SteemWhitePaper.pdf
Steemit is the first company which is pioneering the use of this brilliant public ledger: steem, which stands ready to power a worldwide, censorship free, continuous broadcast of copious information.
Steem power will begin dramatically changing hands on July 4th, and the influence will become more and more distributed from that point forward. This is still in beta... stick around! Keep posting, looking under the hood, kicking the tires... I think you'll like what you see. :)
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ya, I'm still sluggin through the white paper. I may have to read it a few times before I get it.
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That's exactly right. If you were to buy-in in a big way then you could make all sorts of dumb votes (say upvoting spam) and the money to pay for those posts would come out of your (and other investors') pockets by way of dilution. Or, at the same cost to you, you could choose to vote for good posts that direct your money toward adding to the value of the platform. Most significant stakeholders will likely do the latter—that's the theory anyway.
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You would gain some of the money back through the curation share (half the money on a post goes to the author, and half to the people voting. The amount the people voting get is weighted by how much steem power you have).
So your investment in steem power could pay off handily (the power resets after 24 hours of not voting and in theory you could make money indefinitely by voting every 24 hours. This is the whole reason why some people have set up bots to vote.
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That's another question I had, couldn't a guy set up a program to just upvote ALL the newest articles as they come out and if they get popular, he gets rich, if not, no skin off his nose... Or does upvoting unpopular things have the potential to drain your steem? If it does than wouldn't people be less likely to flesh out and discuss unpopular ideas like alternative rightwing stuff for instance?
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Your voting power decreases when you cast a vote, and recovers over time. When you vote a lot, your vote is worth less and you receive less. You can check your current voting power at https://steemd.com/@paul-labossiere in the table on the left.
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Have you read the whitepaper? It might be one of the most economically and intellectually rewarding thing you can do today.
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I'm still reading it. I'll have to read it a few times though I think to really get it.
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Steemit's has a team that travels with famous rappers to collect the funds off of strip club floors after they "make it rain". These funds are split 50/50 with the strippers, much like Steem Dollars and Steem Power are here on Steemit. The strippers in return get a free Steem account to post their college dissertation and get advice from fellow Steemians ... because as we all know, all strippers are just paying their way through college[1].
It's gets complicated past that point and I don't want to bore you with the details, but now you have a basic overview of "where the heck does all this money come from?". So the next time you post, think about that single mom going through college out there dancing her ass off just so you can earn some dough posting on Steem, and make it a high quality post (like the one I just made).
[1] Citation needed.
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lol. please make a video explaining it like this :)
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Thats StripIt's model. :)
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Damn bookmarks got reversed. That explains why I just posted a tutorial on how to mine Steem with your iPhone on their site.
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I have written a simple FAQ and introduction article, click the following link Welcome To Steem! - Introduce Yourself
Welcome to the platform :)
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I love the layout. It's also short and sweet and to the point. I still have a kink in the money chain though: Lets say someone has 1000 in steempower and cashes out to steem dollars. why would someone pay me for it with bitcoin? - You know what, never mind. Its the same haphazard onerous start as any new currency. The first guy who traded gold probably was just as dumbfounded as to why he should trade some delicious lemons for a heavy hunk of metal that can't even hold an edge. You don't have to answer this but I want to follow this train of thought. I might have more influence in the market place of ideas than I need so I auction off some steem. Someone else wants more so he buys it. This makes profitable ideas take over. The leftist decry it as a capitalist invasion but all ideas are subject to currency already. steam just quantifies what fame was doing all along. If an article is a shameless plug and people don't like it, bam. downvoted. Now advertisments can't only be product placement. they needs to be accompanied by something educational or entertaining. Oh what's that you say? all the best ads are exactly that already? by jove you're right! Ok I think I can go through that white paper with a frame of reference now.
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"Who pays the bill if we all cash out after beta ends? "
Yes this is what I'm asking myself alot before investing in Steem. Well since Steem looks very promising and has the potential to replace Reddit, it's still a very risky investment like every crypto investment out there.
So do ur own research first and don't invest what you can't afford to lose.
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