When i press Buy steem where do they come from?
Honestly you do not believe they come from the sky do you?
Who is actually growing them?
The Steem system is built on secure blockchain software that run on computers. There are three types of assets in the Steem ecosystem. Both Steem and Steem Power are analogous to company shares. A third asset, Steem dollars, are created as a loan on Steem collateral and issued to contributers to the ecosystem as currency.
Steem
Steem is similar to publicly traded company shares. The amount of Steem doubles each year so there is signficant dilution for those that hold Steem, however like many fast growing startups a rapid increase in value may outpace the dilution. Just like company shares (ie. stocks) these digital assets have value as more people use and contribute to the ecosystem. The estimated value of the total outstanding Steem assets is currently about $20 million on Coinmarketcap.com.
Steem Power
Steem Power is similar to private restricted company shares and have disadvantages and advantages. One disadvantage is that holders can't sell Steem Power immediately; hence they are illiquid. The advantages of Steem Power is that holders:
May earn more Steem and Steem dollars as dividends to offset any dilution
Have voting power to determine the value of each post.
Steem Dollars
Steem dollars are assets that are created from loans using Steem/Steem power as collateral. If the Steem ecosystem is worth $20 million, the Steem software can create one million in dollars as a loan on the network and issue it as currency for circulation. It's the same as if you owned Apple stock shares worth $500,000 and created a $25,000 loan on your shares and used that as money. You can use similar mechanics with real estate. In fact commercial banks create money this way. Just think about home equity loans and then think about regular home loans and how banks use real estate as collateral to create fiat money.
The blockchain software network executes the entire loan process & interest provisions for Steem dollars and the issuance & allocation of new Steem/Steem power.
There is a brilliant post about where the money come
https://steemit.com/steem/@steemrollin/steem-where-does-the-money-come-from
I upvoted You
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It is a pretty interesting economic system! I just put up a post dealing with why I think Bitcoin and Ethereum have so many things to overcome because they can't reach consensus. I just made a post about this. Please consider upvoting me. I just upvoted you! https://steemit.com/steem/@brianphobos/linux-distributions-aren-t-confusing-but-crypto-forks-are-why-is-that
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