The Steemit Lie: false expectations and false advertisement

smooth

legendary

Activity: 2968

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Quote from: iamnotback on July 24, 2016, 01:48:13 PM

Quote from: Febo on July 24, 2016, 01:03:49 PM

Quote from: DecentralizeEconomics on July 24, 2016, 07:43:09 AM

Quote from: From Above on July 24, 2016, 06:38:59 AM

Quote from: DecentralizeEconomics on July 24, 2016, 02:27:37 AM

Cool story bro... but that's all it is. It's NOT "decentralized".

Can u explain why the STEEM is NOT a decentralized endeavor, 2Kewl4Skool?

Thank u in advance.

~CfA~

Haven't you heard? The Larimers can shut it down anytime they feel like it and restrict people's access to their accounts, but they decide to keep it running to profit off the "Steem ladies" and the suckers.

It is confusing to me also. So far all wallets are on the forum. So has nothing to do with decentralization. is like all bitcoin would run on a one web wallet. That is why there are so much troubles with security and i think it will just continue.

i might be totally wrong, that is why i said i am confused.

Hypothetically you could create your own Steem(.io) client and not use Steemit.com, but the blockchain is proof-of-stake (DPoS) and the insiders control something like 80% of the stake, so yeah it is centralized control.

Not hypothetical. It exists, but is immature: https://steemit.com/piston/@xeroc/piston-web-first-open-source-steem-gui---searching-for-alpha-testers

Agree about proof-of-stake and the stake being highly concentrated.

iamnotback

sr. member

Activity: 336

Merit: 265

Quote from: Febo on July 24, 2016, 01:03:49 PM

Quote from: DecentralizeEconomics on July 24, 2016, 07:43:09 AM

Quote from: From Above on July 24, 2016, 06:38:59 AM

Quote from: DecentralizeEconomics on July 24, 2016, 02:27:37 AM

Cool story bro... but that's all it is. It's NOT "decentralized".

Can u explain why the STEEM is NOT a decentralized endeavor, 2Kewl4Skool?

Thank u in advance.

~CfA~

Haven't you heard? The Larimers can shut it down anytime they feel like it and restrict people's access to their accounts, but they decide to keep it running to profit off the "Steem ladies" and the suckers.

It is confusing to me also. So far all wallets are on the forum. So has nothing to do with decentralization. is like all bitcoin would run on a one web wallet. That is why there are so much troubles with security and i think it will just continue.

i might be totally wrong, that is why i said i am confused.

Hypothetically you could create your own Steem(.io) client and not use Steemit.com, but the blockchain is proof-of-stake (DPoS) and the insiders control something like 80% of the stake, so yeah it is centralized control.

So far, the public keys are all on the blockchain and the user holds his own copy of the private key. This is why the security has been so bad, because users can't manage well secure passwords.

smooth points out that the stake may distribute out over time, but I have also pointed out that it may not. Edit: also in another discussion with smooth about voting power effects where I argued that the power-law will dominate over time because afaik there is no algorithm preventing such a game theory strategy.

Febo

legendary

Activity: 2730

Merit: 1288

Quote from: DecentralizeEconomics on July 24, 2016, 07:43:09 AM

Quote from: From Above on July 24, 2016, 06:38:59 AM

Quote from: DecentralizeEconomics on July 24, 2016, 02:27:37 AM

Cool story bro... but that's all it is. It's NOT "decentralized".

Can u explain why the STEEM is NOT a decentralized endeavor, 2Kewl4Skool?

Thank u in advance.

~CfA~

Haven't you heard? The Larimers can shut it down anytime they feel like it and restrict people's access to their accounts, but they decide to keep it running to profit off the "Steem ladies" and the suckers.

It is confusing to me also. So far all wallets are on the forum. So has nothing to do with decentralization. is like all bitcoin would run on a one web wallet. That is why there are so much troubles with security and i think it will just continue.

i might be totally wrong, that is why i said i am confused.

mtnsaa

legendary

Activity: 1568

Merit: 1000

Quote from: DecentralizeEconomics on July 24, 2016, 07:43:09 AM

Quote from: From Above on July 24, 2016, 06:38:59 AM

Quote from: DecentralizeEconomics on July 24, 2016, 02:27:37 AM

Cool story bro... but that's all it is. It's NOT "decentralized".

Can u explain why the STEEM is NOT a decentralized endeavor, 2Kewl4Skool?

Thank u in advance.

~CfA~

Haven't you heard? The Larimers can shut it down anytime they feel like it and restrict people's access to their accounts, but they decide to keep it running to profit off the "Steem ladies" and the suckers.

Well Satoshi could appear and sell all his millions of BTC too. Do people really fall for the decentralized lies? Do you really think BTC is decentralized? I'm not defending Steemit since I never said it was "decentralized" since I don't really care about that. I don't care about Steemit either, I just find it interesting, even if it's a huge scam, the concept of having millions of users fighting to create and curate the "best" content for money (not only attention) is mindblowing to watch. I don't think Steemit itself will have a lot of success but it's definitely the start of something if other platforms do it better.

iamnotback

sr. member

Activity: 336

Merit: 265

Quote from: smooth on July 23, 2016, 09:09:48 PM

Either way there is no shared 10% withdrawal cap. That completely doesn't exist and BigSirko made it up.

He is perhaps confusing the 10% yearly dilution (out of the 100% dilution) of the market capitalization which is redistributed to users, miners, and liquidity providers.

DecentralizeEconomics

legendary

Activity: 1162

Merit: 1042

White Male Libertarian Bro

Quote from: From Above on July 24, 2016, 06:38:59 AM

Quote from: DecentralizeEconomics on July 24, 2016, 02:27:37 AM

Cool story bro... but that's all it is. It's NOT "decentralized".

Can u explain why the STEEM is NOT a decentralized endeavor, 2Kewl4Skool?

Thank u in advance.

~CfA~

Haven't you heard? The Larimers can shut it down anytime they feel like it and restrict people's access to their accounts, but they decide to keep it running to profit off the "Steem ladies" and the suckers.

From Above

hero member

Activity: 700

Merit: 520

Quote from: DecentralizeEconomics on July 24, 2016, 02:27:37 AM

Cool story bro... but that's all it is. It's NOT "decentralized".

Can u explain why the STEEM is NOT a decentralized endeavor, 2Kewl4Skool?

Thank u in advance.

~CfA~

DecentralizeEconomics

legendary

Activity: 1162

Merit: 1042

White Male Libertarian Bro

Quote from: mtnsaa on July 23, 2016, 09:00:28 PM

Honestly I initially though this was a full on scam and it could still be it, this is crypto after all. However learning about Steem, Steem Power and Steem Dollars is interesting to say the least.

I haven't seen a concept like this in crypto where the currency itself is actually not something to hold forever (Steem) as it has crazy inflation to peg the Steem Dollar. Steem Power on the other hand is basically the share you have in the "company".

That as a system is disruptive to me, there may have been versions of this in the past but I'm not aware of. The only thing I have strong doubts is how "whales" influence the whole platform and there are a handful of them. But oh well, what about Zuckerberg, this is like complaining he has too much influence on Facebook...

If the platform works, then making cents everyday is much better and fun than being on Reddit or whatever, that's the bottom line. It's the actual idea behind decentralization and crypto, why produce content and give all this information to companies when we can all benefit from it based on our work or merits?

The concept of social crypto currency could be here to stay if this gets even more traction.

Cool story bro... but that's all it is. It's NOT "decentralized".

smooth

legendary

Activity: 2968

Merit: 1198

Quote from: BigSirko on July 12, 2016, 03:54:04 PM

On the front page, it might say there are people making $1000s of dollars but the mechanics of Steemit means they have to share the 10% withdrawal cap with other producers.

This is wrong. Half the reward is completely liquid. For example if you look here you can see someone who just received 7,185.425 Steem Dollars (SD) as a reward (worth a bit more than 7185.43 USD given current market prices). That has no restrictions on cashing out whatsoever.

Quote from: https://steemit.com/@guerrint/transfers

26 minutes ago blogging reward of 7,185.425 SD and 2,018.825 STEEM POWER for guerrint/steemit-in-the-streets-tara-gets-interviews-and-reactions-from-people-who-ve-never-seen-steemit

The other half of the reward, the Steem Power, is a form of "karma" that affects your influence on the site and can only be cashed out (if at all) over two years. Many users have no interest in cashing it out.

Either way there is no shared 10% withdrawal cap. That completely doesn't exist and BigSirko made it up.

mtnsaa

legendary

Activity: 1568

Merit: 1000

Honestly I initially though this was a full on scam and it could still be it, this is crypto after all. However learning about Steem, Steem Power and Steem Dollars is interesting to say the least.

I haven't seen a concept like this in crypto where the currency itself is actually not something to hold forever (Steem) as it has crazy inflation to peg the Steem Dollar. Steem Power on the other hand is basically the share you have in the "company".

That as a system is disruptive to me, there may have been versions of this in the past but I'm not aware of. The only thing I have strong doubts is how "whales" influence the whole platform and there are a handful of them. But oh well, what about Zuckerberg, this is like complaining he has too much influence on Facebook...

If the platform works, then making cents everyday is much better and fun than being on Reddit or whatever, that's the bottom line. It's the actual idea behind decentralization and crypto, why produce content and give all this information to companies when we can all benefit from it based on our work or merits?

The concept of social crypto currency could be here to stay if this gets even more traction.

From Above

hero member

Activity: 700

Merit: 520

Quote from: BigSirko on July 12, 2016, 03:54:04 PM

Quote

https://steemit.com/steem/@hisnameisolllie/get-ready-for-bigger-payouts-usd12m-per-year-at-current-levels

I believe (but please correct me) that payout are currently set at 10% of market cap per year (with a further 90% of market cap being paid out to Steem Power holders). This means that, if the market cap can average out at $120m for the year, Steemit payout will be $12m.

With 7300 users currently on the platform, if you are an average performer, you could be in line for $1,643 per annum (if user numbers stayed at 7300). Just 6 days ago, this number would have been around (($20m/10)/4700) $425 per user on average.

On the front page, it might say there are people making $1000s of dollars but the mechanics of Steemit means they have to share the 10% withdrawal cap with other producers. Example if you are a producer on Steemit and made $30,000+ on there, it would literally take you many years to withdraw that money. This problem is only compounded when more producers hop on Steemit and are trying to withdraw their money too. Anyone want to wait 50 years to get their money out of Steemit? Cheesy

This is clearly a scam where they are setting up false expectations and false advertisements by showing producer's amount earned: "look at all these people making $1000s! Why aren't you doing it too?", without telling viewers there is no practical way to withdraw that money. The inability for producers to withdraw their Steemit also explains why there are hardly any coins on the exchanges and the current capitalization manipulation / pump.

@BigSirko, @TaunSew,

this is very interesting.

U have pointed out some aspects of STEEMIT that we should be looking into.

We should also note that Dan, the creator of the BitShares, is the intelligence behind the system.

~CfA~

DecentralizeEconomics

legendary

Activity: 1162

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White Male Libertarian Bro

Quote from: smooth on July 13, 2016, 05:10:35 AM

Quote from: Divinespark on July 13, 2016, 05:04:15 AM

I think many of these points are valid, but it's too early to say what will happen. As payouts decrease with the flurry of new users, it will be interesting what happens with lowered incentives. Fundamentally, a 100% inflationary system is hard to support.

It isn't an 100% inflationary system overall. The 100% inflation is applied to the liquid STEEM token to encourage people to shit or get off the pot.

Yeah, we all know the Larimer gang are experts at inflation. What was the terminology that they used in Bitshares to describe it? .... Oh, I remember. It was "Dilution without limit!"

iamnotback

sr. member

Activity: 336

Merit: 265

Quote from: ?? on ??

https://steemit.com/introduceyourself/@fluffypony/what-s-up-steemit-people-i-m-riccardo-fluffypony-spagni-from-the-monero-project

Friendly guy has a good life. It is a positive synergy being healthy, happy, in a positive environment, and feel you are doing worthwhile activities. I lack almost entirely those attributes at this particular juncture of my life, although I've had some of those at various junctures in my life.

Perhaps you all read my post about Steemit's business model. And there is my damning slamdunk followup.

smooth

legendary

Activity: 2968

Merit: 1198

Quote from: Divinespark on July 13, 2016, 05:04:15 AM

I think many of these points are valid, but it's too early to say what will happen. As payouts decrease with the flurry of new users, it will be interesting what happens with lowered incentives. Fundamentally, a 100% inflationary system is hard to support.

It isn't an 100% inflationary system overall. The 100% inflation is applied to the liquid STEEM token to encourage people to shit or get off the pot. I.e. either power it up into Steem Power form or trade it to someone else who will. This ensures that at any given time most of the stake is locked and people owning it have incentives to care about the longer-term health of the system. Once in Steem Power form the effective inflation is much lower. The exact number varies depending on the percentage that is powered up but in practice will likely be single digits positive inflation. In theory it could be zero or negative inflation (unlikely though).

Divinespark

hero member

Activity: 938

Merit: 501

At this point, from what I can tell you only needed to have photos of your tits out to get massive upvotes and collect large payouts. Sustainability needs to come from somewhere else.

Divinespark

hero member

Activity: 938

Merit: 501

I think many of these points are valid, but it's too early to say what will happen. As payouts decrease with the flurry of new users, it will be interesting what happens with lowered incentives. Fundamentally, a 100% inflationary system is hard to support.

DecentralizeEconomics

legendary

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White Male Libertarian Bro

Quote from: TravelsAsia on July 13, 2016, 01:34:21 AM

Quote from: DecentralizeEconomics on July 13, 2016, 01:08:59 AM

THE LARIMERS MUST PAY!

For a minute I was worried your obvious hard-on for the Larimers wouldn't carry over to Steem. You don't disappoint.

The Larimers are scum.

smooth

legendary

Activity: 2968

Merit: 1198

Quote from: yefi on July 12, 2016, 11:38:56 PM

Quote from: tokeweed on July 12, 2016, 07:47:28 PM

A couple of questions... How does Steemit pay off these people? Where does Steemit get their revenue?

From what I can understand, the devs mined all of coins in the beginning and maintain control now through witnesses. The Steemit website (totally separate from the blockchain) is them redistributing these coins to users.

The website is not totally separate from the blockchain. It is a view of the blockchain, essentially a feature-rich web wallet.

OP, the 90%/10% stuff does not work the way you suggest. Authors who have gotten payouts have in many cases converted those coins to BTC, then to fiat, and ended up with real money in their bank accounts. Many of these stories were posted when payouts started July 4th. The idea that the payouts "aren't real" is nonsense. None of the author rewards go to the devs (unless of course, they make posts and get upvotes like anyone else). Stakeholders can get rewards by voting, but the main dev account 'steemit' with millions of early-mined coins, does not vote so it does not get any rewards.

None of this means it is a good investment. Do your own research. If you don't understand it, stay away.

vlight

hero member

Activity: 656

Merit: 500

Quote from: bbc.reporter on July 13, 2016, 12:31:24 AM

Quote from: yefi on July 12, 2016, 11:38:56 PM

Quote from: tokeweed on July 12, 2016, 07:47:28 PM

A couple of questions... How does Steemit pay off these people? Where does Steemit get their revenue?

From what I can understand, the devs mined all of coins in the beginning and maintain control now through witnesses. The Steemit website (totally separate from the blockchain) is them redistributing these coins to users.

It's an interesting tactic. The number of coins out in the wild - the free float if you like - is miniscule. They can therefore make the coin look like it has this massive cap when in fact it doesn't. A good example of this is the ask side on Bittrex, which at 35,000 Steem is currently less than 0.05% of the supply.

Btw, currently $400M cap supported by a whole 200 BTC on Trex. lolol...

Very smart of the creators of Steem. They beat everyone to the punch and could be on a potential gold mine here.

The funny part is that it was possible to buy cheapest Steem just a week ago. But only very few realized the market dynamics.

tokeweed

legendary

Activity: 3976

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Life, Love and Laughter...

Quote from: bones261 on July 12, 2016, 09:46:12 PM

Quote from: tokeweed on July 12, 2016, 09:41:49 PM

Quote from: ?? on ??

The only ones getting butthurt, are those who dig butthurt:

https://steemit.com/votes/girlsgonesteem-nsfw

Holy ****! Now I'm really gonna read that white paper. Are those naked girls really naked girls doing it for real? Wow.

You've been catfished.

I know! But those boobs though... How many more of those does Steem have? I imagine there would be a lot the next 2 or 3 years.

Topic: The Steemit Lie: false expectations and false advertisement (Read 3068 times)