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Have you ever thought about where the money to pay authors and curators comes from in Steemit?
When you write an article for a traditional magazine or newspaper, you are usually paid by the media company. Where did the company get the money to pay the author of the article? That is, from the sale of magazines and newspapers.
Similarly, if you create a blog on Blogger, for example, you can set up Google to display ads on your blog. And when a visitor to your blog is interested in the ad and clicks on it, Google will pay you. Where does Google get the money to pay you? That is, from advertisers who pay Google for their ads.
Well, now we write articles and blogs on this Steemit and get paid when other users upvote it. Users who upvote will also be paid as a curator's fee. So where does Steemit get the money to pay these writers and curators?
First of all, the basic differences of writing in Steemit compared to the previous two cases are as follows:
- When writing for a magazine/newspaper or blogger, we are paid in legal tender such as US dollars.
- When writing for Steemit, we get paid in cryptocurrency, i.e. STEEM (SP) and SBD.
Then the other important differences are as follows:
- If we write for a magazine/newspaper or Blogger, we will be paid by the magazine/newspaper company or Google.
- If we write for Steemit, we will not be paid by Steemit Inc. but by the Steem blockchain.
Therefore, there are two keys to the answer to the above question.
- We will be paid in STEEM (SP) and SBD.
- We will be paid by the Steem blockchain.
So where does the blockchain get the money to pay us? Blockchain does not get money from anywhere, but it does print money.
Yes, it does. Like a central bank that prints legal tender, the Steem blockchain prints cryptocurrencies (in this case STEEM and SBD).
According to the white paper written by Dan Larimer, since 2016, the Steem blockchain prints 9.5% of new Steems per year. And each year, this inflation rate will decrease by 0.5% per year.
This means that the Steem inflation rate for this year is 7% per year, if we comply with the white paper. In reality, though, it could be greater than that.
Furthermore, how valuable are these cryptocurrencies that are just printed by the blockchain? Can't anyone create their own blockchain and print cryptocurrency at will?
Therefore, the key role here is the investor. Investors who are interested or believe in STEEM / SBD wilk buy it on exchanges. And that is where this cryptocurrency finds its price.
Therefore, let's get investors interested in Steem by creating content that attracts a large number of people to join so that the price of Steem / SBD will go moon🌛.
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