That Steemit is essentially run as a ponzi scheme, since it is virtually impossible for the average member to make any money despite claims made that it pays curators for their upvotes. What Steemit does not clearly explain, is the fact that unless members invest in a significant amount of Steem in order to gain a lot of Steem Power, and on top of that, have a reasonably high reputation, they will receive virtually nothing from all their upvoting efforts. This is exactly what happened to me. I invested approximately 800 steem, and with over 1000+ upvotes, it netted me a grand total of less than 25 cents. Nowhere in any of Steemit's documentation does it state that the average member will receive nothing, despite their ongoing investments and efforts. Furthermore, when a member wants out, he has no facility to get his investment back, other than wait a ridiculous 13 weeks (1/4 of a year) for power down to take place. And those facts are where the crime is, and that is what will be investigated.
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While I agree with most of your assessment, I'm not sure I would personally call steemit a "ponzi-scheme" (nobody promised you'd double or triple your money in a short span of time).
Steemit does seem unfair and misleading, but it's apparently no more unfair or misleading than the true scam we're all born into (fiat currency).
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