While many people have either straight-out seen, or subtly sense, that Steemit is a game-changing platform in the worlds of social media, cryptocurrency, and online socio-economic collaboration - the complexities of its systematic dynamics are a bit much for the average person to wrap their heads around.
One of the beautiful things about Steemit is that knowledge of how all the technical & financial details work is NOT required. Anybody can join, start creating & curating content - getting their feet wet in the blockchain game and earning rewards for their contributions to the community.
However, earning rewards for sharing & voting on content is only the tip of the iceberg.
Steemit isn’t just a social networking site. Nor is Steem just a cryptocurrency.
Steemit is just the first application on the Steem blockchain. It is only the first of ventures to be built out within an entire ecosystem of its own - a front-running decentralized organization leading the way for an innovative economic model birthed from developments in blockchain technology.
While the front-end website may be easy to operate - for everyone from a 4-year-old to your dear old granny - the details of the back-end operational protocols and financial flows is not so simple to grasp. A quick read through the Whitepaper may provide the basic foundation of knowledge to understand what the entire Steemit venture is about and the basics of how it operates - yet, there’s still much else to discover about how exciting of an undertaking we’re all collectively embarking upon with our investments of time, energy, passion, (and for some, money) into this innovative ecosystem…
Given the complexity of the model and background of economic & financial principles required fully get how an ecosystem like Steemit works, it's something that takes time and an investment of focus to grasp.
The further I, personally, have dived into the details - the more questions are uncovered; and I am by no means qualified to even begin writing as though I'm well-enough informed to confidently state much about it. However, I have come across a number of differing perspectives on the matter that have greatly helped clarify aspects of it all - which may also be of value to anyone else seeking to understand more about this ecosystem.
Below, are the best 7 posts I’ve found on Steemit that look at the economic/financial models behind the cryptocurrency & ecosystem that help to clarify it all for a better understanding - whether you’re a total newbie to Steemit and cryptocurrencies, or have been in the game for a while and still have some questions as to how Steem actually works.
There might be a little overlap between points covered in each - however, each post offers the authors’ own unique insights that collectively help to view matters from different angles, thereby serving to form a more complete picture.
By taking in multiple viewpoints from knowledgeable, experienced professionals from differing backgrounds - listening to contrasting & complementary explanations spoken/written through diverse voices - we have the opportunity to see various sides of the system, which come together into an integrated, matured perspective.
Getting through reading all these - and their comments, which also contain much value - may take some time. But, doing so will pretty much guarantee a far greater comprehension of the dynamics of this ecosystem and give a better sense of the possibilities that may await ahead to be birthed through our collaborative efforts growing new ideas, projects, initiatives, and enterprises through the Steem ecosystem...
Without further ado, here they are:
1. Steem: Where DOES The Money Come From?
An excellent outlook from @steemrollin - founder & CEO of Bitcash and MegaX, as well as co-author of Steemit 101,
A great background to digital economies and framing Steemit within the context. Relatively short & simplified - in this post, Jun helps to shine light on the framework virtual economies which is essential to understanding Steem’s place within. Given his experience in the crypto game, background, and depth of knowledge - his outlook well-deserves its respect, and the way he’s condensed key economic insights relevant to the topic of Steemit herein are a testament to quality of professional participants Steemit as been attracting.
ESPECIALLY recommended for those newer into the cryptocurrency domain.
2. Steemit Isn't a Social Network - It's An Economic System
Filmmaker & tech investor @andrarchy first captured my attention with his EXCELLENT Why Steemit Is The Tesla Motors Of Social Networks vlog, and has persisted in bringing a fine fusion of artistic personality and intellectual insight to help clarify what Steemit is, how it works, and the potentials ahead.
His Inflation/Deflation And How Steem Addresses Them and Steemit Vlog #4: Steemit 101 - Steem, Steem Dollars, and Steem Power are also noteworthy to invest a few minutes in watching for anyone still not totally clear on the subjects.
Andrew’s video walkthroughs goes a long way in helping provide a visual component to the learning in a way reading alone doesn’t. Keep an eye out for more to come from him, as he may be well on his way to being a very knowledgeable translator of the core Steemit vision and its possibilities for economic expansion. And in the meantime, take the time to catch up on these videos as they’re both highly informative and inspiring.
3. Where The Money Comes From - "Digging Deeper Into Steem" (Part 1)
A great perspective & insight from trader, investor, and economics student @wingz. This one draws on economic fundamentals and gets into a broader context of currency systems, before bringing Steemit into the discussion as a solution to some of the larger issues faced globally - while keeping a tight focus and simplifying things for a short, easily-understandable read.
Also check out his other article, My Journey Peeling back the Economic Layers of the Steemit Onion…. Starting on the analysis of Steem as strictly as speculative opportunity through to a paradigm shift of Steem accommodating a new economic system.
Together, these two posts help to fill in some key gaps in economic knowledge and the bigger picture to expand our vision of where Steemit is currently at in relation to where it may be going.
4. Still Confused by Steem, Steem Dollars, and Steem Power? The Power Plant Analogy
@donkeypong has proven himself a top contributor to the site since Steemit’s beginning, and it’s his articles like this that demonstrate why...
While looking at Steemit’s financial instruments in strictly technical terms can get a bit boring or be hard to get for some, this article uses some simple, wonderful metaphors to help contextualize the main components of the Steem ecosystem in a way that helps to understand it all from a fresh perspective.
Any newbies not clear on what to do with their earnings and how to move them around or cash out on exchanges would also be advised to check out this older post of his - which while written for the first Steemit payday, still provided great guidance on the financial instruments and how to get using them within the larger cryptocurrency ecosystem outside of Steemit.
5. Steemit is NOT a Ponzi Scheme - It’s an Economic System just like the $USD
As commented on the post - the linguistic focus of articles like this is almost counterproductive, given “ponzi scheme” set as the context of conversation. However, given it’s a topic on many people’s minds, it may also be an important one to discuss thoroughly to clarify. This article lays out some important points, and there’s alot of gold in the comments expanding on the topic.
Another good one on the same topic is An actual, relevant analysis of steem, and why its really not a ponzi scheme, written by @sigmajin, who has a background as a lawyer and thus a good legal perspective on the matter.
And a couple more worth reading: Steemit is not a Ponzi scheme and The Steemit Ponzi scheme discussion - some common questions.
6. Where does the money come from? A look into the economics of Steem.
This post by @arhag is not one of the simple ones, though is very thorough.
It may not have any pretty pictures or win style points, but more than makes up for it in the depth of analysis and quality of objective critique. Very left-brained, subscribing to strict logic, rationality, figures, and facts - this piece offers a great outlook without any injection of either optimism nor pessimism.
Come to this one with full attention, as it’s a bit heavy - but well-worth the read (as determined by the community, also - as it's the most highly-rewarded of these all.)
7. The Steemit Whitepaper
It all started here...
For crypto-newbies who don’t know what a “whitepaper” is - it’s sort of like the constitution of a venture. It’s the founding document outlining the vision, the proposed plans for how it shall be executed, and the details of the business/economic structure/model.
At 44 pages, this one isn’t a quick, easy read. But, it is the fundamental document describing the philosophy, economic dynamics, and rules from which Steemit was born. As such, it’s pretty much the most important piece of literature on Steemit anyone could read - and gives the most complete overview of the entire venture & ecosystem available anywhere.
Drafted by the founders, this is the official rundown on Steemit, straight from the source.
So there you have it.
Of all the posts on Steemit, Steem, and its financial models and ecosystem, these are among the best to speed up your learning curve and paint a solid picture of what it is we’re investing to (with time & energy, just as much as financial capital).
There are plenty of golden opportunities ahead for those getting themselves up-to-speed on community developments - and a foundational understanding of the dynamics behind Steem’s ecosystem may prove priceless, as such knowledge enables us to better navigate the maze of possibilities for what can be built out on this blockchain to create value for the community - and how its upcoming applications can create value for other communities.
A fascinating journey ahead, it shall be...
A big thanks to all the authors who’ve been contributing to helping us all understand this innovative platform & ecosystem better. You guys rock.
And if you've found this to be valuable in exapnding your understanding of Steemit, please do share it when/where appropriate if you feel there are others whom may benefit from the information in these curated posts. ✌