Why you should not say steemit is a Ponzi Scheme
What is Ponzi Scheme?
A Ponzi scheme is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities. Operators of Ponzi schemes can be either individuals or corporations, and entice new investors by offering short-term returns that are either abnormally high or unusually consistent.
Companies that engage in Ponzi schemes focus all of their energy into attracting new clients to make investments. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.
Are you thinking what am thinking now? My money is at stake at that so called site that claim to pay me 200% of my capital in 30days.
Well, Just relax and finish this post before closing this page. Now here is another question. Am I safe in Steemit?
What is Steemit?
Steemit is a social network that looks and functions a lot like Reddit, but with one HUGE difference; Steemit pays both the content creators when their work gets upvoted, as well as the people who curate the best content on the site by upvoting others work.
Now you are a bit relief . But did you know Steemit was launch just 2016 here. Now see how promising the social site is becoming all over the world. Now I must tell you since I joined Steemit my activities in other social sites has dropped drastically.
Now for those asking if Steemit is a Ponzi scheme, take a look at this table and see some key points iterated:
I know you are already asking where does those huge pay come from in Steemit, relax I will break it down to my best knowledge.
Well in Steemit everyday out of the 100% mined steem 10% is allocated to posts that has upvotes , curation, comments. While the other 90% is shared to those with steem power.
But in Ponzi scheme there is no reward coming from the initiator pocket else new participants payout existing once.
The question is why should I involve in Steemit and not Ponzi?
Ponzi's are fraudulent and are not supported by the financial bodies, but Steemit is a social platform where you go on with normal activities but endup earning yourself for traffic created with your contributed posts.
Food for thought:
Thanks for reading this post.
Is really not about getting upvotes in this post but is something everyone the community need to see. So do the needful by resteeming this post, Thanks.
Please upvote , follow and resteem thanks