(in reply to the #bitcoinpizza conversation)
I want to thank @lukestokes for prompting this discussion. It's an important step towards being able to talk about Steem in a way that welcomes people into our community and helps the platform grow.
"Where does the money come from?"
I spent a lot of time trying to answer this question on a theoretical or abstract level, before I realized that that wasn't the correct approach. I was putting the cart before the horse.
Knowing that it works is a prerequisite for knowing how it works.
Luke points out that it's important to be able to respond to the question with authenticity. In order to be persuasive, you have to be convinced yourself. And as much effort as I've spent grappling with questions of the nature of money and theories of value, I'm still not sure I have the answers.
What am I sure of? My own experience. Relating my own personal story will be far more effective than a lecture on what money is.
"Where does the money come from? Well, it's being created and distributed as people use the site. I can't explain exactly how it all works... But it does. I was skeptical at first, but I decided that I didn't have anything to lose. I made a few posts and commented on some others. Before long I was making more money than I would have ever thought was possible. It's been a life changing experience!"
If they aren't convinced, I can show them actual posts I've made. At that point, it's up to them. It might take some people a bit of time, and that's fine. But I can't think of anything more compelling than that.
Seeing is believing
I think that's the point of the Pizza Challenge, and perhaps even the genius of Steem. The Bitcoin Pizza was a proof of concept. It was a way of turning an idea into something tangible. For people who were attracted to the idea of a decentralized digital currency, it was the little push they needed.
In order to convince somebody to start using Bitcoin, you have to sell them on the idea. But that's not how money works. That's not how people work.
Our first experiences with money were watching our parents pay for things at the store, or perhaps being given some to buy a toy we wanted. Those were practical lessons, through which the substance of money became self-evident.
What we need to do to is to recreate those experiences. And that is what Steemit is doing. It's giving out money, and saying "Now go buy yourself something special." It's the Bitcoin Pizza on a grand scale.
I have feeling it might just work.