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Why Steemit isn't Ponzi scheme. [3 minutes read]


Many people is wondering why some account on Steemit has more than one million Steem Power, while we just start with ten.

Will it be possible for a user registering today, or the next year, to reach 1 million Steem Power ?

If it is not possible, this would sound pretty unfair for a service that aspires to revolution the social networks and the world economy.

As a poker player, I would never sit in a game where my opponent has an opportunity to collude, or to know my cards. Because such a game can't be beaten.

Instead, I would probably sit in a game where my opponent is likely to be a tougher player than me. Because I know this is the only way to improve my game, and to get precious informations about the best players in my game.

Also if the founders of Steemit have reserved for themeselves a big part of the cake, we can be optimistic about the future, because if they try to transform this site in a speculation, they will just sit with a ton of Steem in their hands... but Steem will be worth nothing!

Let's see better how a Ponzi scheme works:

A guy, let's call him Charles Ponzi, offer the chance to make a very interesting investment, offering a very big interest rate. For example 5% every month. People start investing small amounts of money, and Ponzi repays their investment. As the market start believing in this investment, people start committing an esponential amount of money. Mr Ponzi pays the interest with the money of new subscribers. At a certain point, he runs away with the money.

Why Steemit can't be like a Ponzi Scheme ?

the answer is simple:

because doing a similar thing with Steem would just decrease the value of Steem. So mr Ponsteem... would not gain millions of dollars, but millions of a currency worth just nothing!!!

For sure the reward system will need some fix to avoid that only the most powerful accounts control all the system: we aren't here to enrich a new Mark Zuckerberg with our own work. But we can be optimistic regarding this changes, because they will be profitable also for the accounts with more Steem Power.

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