RE: Where Does the Money in Steem Come From?

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Where Does the Money in Steem Come From?

in steemit •  8 years ago 

The quality of your video is excellent! Great job!

I wanted to point out that the BitCoin method of creating money to compensate miners is simply a tax on all BitCoin holders through inflation. New value isn't created, existing value is simply redistributed to the miners by creating new coins and causing inflation.

I also wanted to point out that all the value and money being stored in STEEM and cashed out of STEEM was injected into STEEM by investors. If steemit.com users cash out at a higher rate than investors buy in, then the well will dry up, and the value of STEEM will decline. If the steemit.com platform can offer such value that normal users are willing to buy STEEM to consume it, then it could survive without investors.

I could be wrong. Maybe I'm missing something. I am brand new to cryptocurrency. But that's my humble and unqualified opinion.

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I found your article to be very interesting and informative. I agree with you that dilution and inflation are essentially the same, but I disagree that dilution isn't a tax. Anyone who has the power to dilute a currency also has the power to redistribute the wealth carried by the currency, and therefore, has taxing power. To me, this is a straight forward concept, but I'm willing to give further examples if needed.