IS STEEMIT A PONZI SCHEME - IF NOT, WHAT IS STEEMIT THEN?

No, Steemit is something else, but read what a ponzi scheme is and what Steemit really is. Read on.

WHAT IS A PONZI SCHEME

I had asked this question on my first encounter with some steemians, i.e. before I became a member of steemit. I said to myself, this people have come again, which one is steemit again. In fact, I did not wait for an answer to my question but I just concluded that as long as it is an online business, it is a ponzi scheme.

It was when I decided to give steemit a trial and as time went by that I realized that ignorance could hinder one from achieving much in life and from reaching one's ultimate goal.

This takes us to the definition of ponzi scheme.

WHAT IS PONZI SCHEME?

To be able to differentiate between the two, we need to define them one by one, so a Ponzi Scheme is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading. Ponzi schemes operators could be either individuals or corporations that attracts the attention of new investors by offering short-term returns that are either abnormally high or unusually consistent.

Organizations that engage in Ponzi schemes concentrate or focus their energy in attracting new clients (mugus) to make investments. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.

Ponzi scheme is named after Charles Ponzi, who became notorious for using the technique in the 1920s and the idea, present in novels was performed in real life by Ponzi, and became well known throughout the United States because of the huge amount of money he took in. Ponzi's original scheme was based on the arbitrage of international reply coupons for postage stamps; however, he soon diverted investors' money to make payments to earlier investors and himself.

Charles Ponzi became noted in 1920, in Boston.

I heard about ponzi scheme for the first time in the 1990s with one bank known as Forum Bank, which offered a very high interest rate to customers and many people jumped in and never surfaced from the deep sea. Instead of being victorious, they became victims of the ponzi scheme. The Forum Bank defrauded people millions of Naira - Nigerian currency. This takes us to another type of free fraud scam - 419.

WHAT IS 419 SCAM

419 scam usually pronounced as "four one nine" is derived from the section of Nigerian law, which means "Nigerian Email Scam". It is an acronym, abbreviation or slang and an illegal way of getting money from someone by sending an email to the customer promising that they will make a lot of money if they invest in the business activity which does not really exist, an advance fee fraud.

REAL DEFINITION OF 419 'NIGERIAN SCAM'

It is a scam where the sender requests help in facilitating the transfer of a substantial sum of money, generally in the form of an email. In return, the sender offers a commission, usually in the range of several million dollars. The scammers then request that money be sent to pay for some of the costs associated with the transfer. If money is sent to the scammers, they will either disappear immediately or try to get more money with claims of continued problems with the transfer. Please watch out and be warned.

WHAT IS STEEMIT, THEN?

Steemit is a social media and blogging platform that pays users for posting content(s)

It is a social news service which runs a blogging and social networking website on top of a block-chain database, known as Steem. The service produces STEEM and STEEM DOLLARS, which are trade-able tokens users obtain for posting, discovering, and commenting on interesting content(s).

It is a network that pays you when you post an article instead of demanding money from you.

BEAUTY OF STEEMIT

Steemit does not request you to pay any money, from the beginning to the end
Steemit will rather pay you some token for posting, commenting or up voting an interesting post
Steemit does not make an empty promise rather what steemit promised to do is what it does
As much as you can write interesting posts, some token enters your pocket
Steemit has helped a lot of people, young and old to discover their talents and share same with others
It affords us the opportunity to get a lot of information or news around us,
Steemit gives us the advantage of being able to post much more useful.

SIMPLY PUT

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