RE: Is Bitcoin a Ponzi too? A Simple Explanation about Where Does Money Come From for Dummies

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Is Bitcoin a Ponzi too? A Simple Explanation about Where Does Money Come From for Dummies

in steemit •  8 years ago 

You are off the track. Demands are not the essential point of rewards. They are related to an expansion of Steem. Dilution and redistribution are the keys of reward system.

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There has to be some demand or the price will instantly collapse to zero because some users will want to cash out their rewards or holdings and find no buyers.

You can't meaningfully redistribute something that has no value. Any analysis of such as system has to include the demand element.

@smooth Disagree. Demands decide the magnitude of rewards. If there is nearly zero demand, very small amount of money will be redistribited, still.