Where does steemit gets money to pay content creators?

moon11 (46) in steemit • 7 years ago

Hello steemit users. Since joining steemit somehing is really intriguing me. Unlike other social media sites which generate most of its revenue from advertising, steemit business model seems unclear to me. Is there anyone who can explain how does steemit makes money?

steemit money

7 years ago by moon11 (46)

$2.60

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whatsup (75) · 7 years ago (edited)

This is an area of concern for some. Basically the rewards are newly created Steem. As long as the demand for steem rises the value is set by people buying and selling the currency. There are many who wonder if that is enough.

Also, I think there is hope for future projects building on the Steem Blockchain.

$0.00

1 vote

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moon11 (46) · 7 years ago

My other concern is that do we have a limited supply of steem? From what I have read we have a definit amount of bitcoin. Though I would prefer steem be limited, I am concerned that how will steemit generate steem to pay content creators if we have reached its maximum supply?

$0.60

2 votes

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whatsup (75) · 7 years ago

Each day new steem is created at a rate that has to do with the current price and math I can't explain, but when the price is up the rewards pool slowly follows along the price trend, (Average of 30 days of price.) The new steem each day is distributed by voting shares. (That where the rewards come from)

After some amount of time, I really can't remember they will stop creating new steem. It is "down the road" though. (They used to say 3 years, but I don't know the current date)

In the meantime, other projects and opportunities may develop for future rewards, but it is speculation at this point.

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moon11 (46) · 7 years ago (edited)

Your explanation make me pessimistic about the future of steemit. If they don't have a plan/project right now, it may may possible that they are unable to come up with a viable one. I believe they only created this platform with the aim of artificially increasing the demand for steem.
Is the creator of steemit and steem the same?

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whatsup (75) · 7 years ago

I don't think it is a pessimistic future, in 9 months of simple blogging, I have earned, saved and invested about $7k or so, (depending on price) We have more end users, sign-ups are up, usage is up. Every indication is by trial or error this is going to take off.

I don't know what the future brings, but we have great tech, a good community and several other projects being started on the block chain.

The platform is growing and the company responds to problems. So, if the speculation value of Steem starts to fail, I am sure they will take measures to create an income streem, trading and businesses with earning potential will be build on the blockchain. There is even an opportunity to consider advertizing revenue in the future. The more users we have the more opportunity we have. Everything in Crypto is pretty much speculation.

If you need a mapped out opportunity, it will be difficult to find in crypto in my opinion.

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moon11 (46) · 7 years ago

So, people accepts steem as a currency, that is why it has some value. Is there any reason why steem would be regarded as a better cryptocurrency if not the best compared to bitcoin or ethereum? I think that people will only accept steem as a currency if it offers something better than all other cryptocurrencies.

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whatsup (75) · 7 years ago

We have a faster blockchain than either of those that you have mentioned. I have seen steem criticized for many things, but our technology is rarely a part of that. Simple answer, yes.

Also, My experience tells me that where people gather an economy will be created. Stay tuned for more value add applications to be built on the blockchain.