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Navigating STEEM Through Ponzi Scheme Rocks, Speculative Hype Currents, Towards The Safe Harbors Of The True Social Media Promised Land by dragosroua

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· @dragosroua · (edited)
$27.18
Navigating STEEM Through Ponzi Scheme Rocks, Speculative Hype Currents, Towards The Safe Harbors Of The True Social Media Promised Land
It's not easy being a Steemian, you know. 

For starters, it's this blockchain thing. It's complicated enough in and on itself. And 95% of the people are equaling "blockchain" with "bitcoin". So every time I try to explain to somebody how this thing works, I get this: "Oh, ok, so it's just another Bitcoin, huh?" 

No, man, it's different.

And here we go, trying to explain concepts like "rewards pool" (oh, so you print money out of thin air, right? - like the central banks aren't doing this every day...), "witnesses" (oh, like Jehovah witnesses, you are some kind of cult, right?), "steem power" (so, you have two coins called "steem" and "steem power", now that's really fishy...), or "power down" (so I can't take it out all at once?why do I need 13 weeks for that?).

Add to this the intrinsic decentralized nature of the accounts with their public / private key management ("So there's nobody to which I can resort to recover my account? No central authority? Who's running this shit?") and you get a pretty complicated picture.

The learning curve of Steem is steep. And when you thought you finally learned how things are working around here, you wake up in the middle of a whale flag war, and you have no idea what (and why) hit you.

Sometimes, I feel like Steem is a tiny little boat sailing around towards the promised land of a new social order, just like the vessels of the great explorers in the fifteenth century. There's an enormous amount of excitement, but there are also dangers everywhere.

And, if we should continue the parallel with the great explorers, the promised lands weren't discovered by the boldest of them, but by the ones who showed the most resilience and stamina. 

# To Boldly Go Where No Man Has Gone Before

These days we are enjoying a glimpse of what these new promised lands could be: STEEM is trading at $8. For many of us, who stayed around even when it traded at a few cents, this price is huge. 

But it may also be just the first line of the horizon, just the beach of a beautiful continent unfolding unprecedented levels of freedom, lack of censorship and wealth.

Alas, getting there is not easy. I see at least 2 main categories of problems that are always simmering, waiting to explode: the "Ponzi scheme" accusations, and the "Speculative currents".

# The Ponzi Scheme "Rocks"

A Ponzi scheme works by rewarding the early adopters, to the detriment of the latest newcomers. It's a business without a "business", relying only on attracting more and more people. Steem is often compared with a Ponzi scheme, to such extent that almost every conversation I have about it must carefully handle these accusations, just like a vessel should avoid treacherous rocks near the shore. 

And I think I understand why.

Our enthusiasm of sharing this technological jewel can easily be misunderstood. In our genuine effort to attract new people (meetups, ads, campaigns, interviews, etc) we may present ourselves like the evangelists of a new pyramid scheme. Every time we proclaim: "join this amazing community _and be amongst the first to enjoy the benefits_" we raise at least a few legitimate eyebrows. Yes, by claiming that only the first will benefit, we're generating suspicions.

So I say let's tone down a bit. Let's try to understand ourselves first the difference between early adopters and Ponzi scheme "whales". 

An early adopter is somebody using a technology - or joining a trend - when that technology isn't yet mature. When it's rough around the edges and difficult to understand. 

And early adopters accept that and try to improve it in every way they can: providing feedback, contributing skills or promoting (attention, not "evangelizing" and not promising anything that's not real). 

So let's be early adopters, accept the fact that this is a _collective experiment_ which is run by us, every second. It may fail at some point. But at least we, as early adopters, did our best to make it work.

So now, when somebody asks me what the hell am I doing on this ugly "reddit clone", I say that I'm helping a social experiment. 

"Did you get paid for that?", some of my friends are asking me.

"Well, sometimes yes, sometimes no. It depends on the markets." I answer.

And only those who are still asking questions after this dialogue are getting the whole presentation from me. I leave the rest in peace. 

# Speculative Hype Currents

The main reason being on Steemit is to be social. That's the basic function of this place. To write. To interact. To support.

But the blood in this body is a currency, namely STEEM. And that currency is freely traded, which means that, more often than not, it's subject to market manipulation. Either upwards, or downwards. To continue our explorers metaphor, these swings will be the "currents".

It's very easy to get swept in this current. It's very easy to lose contact with the basic function of this place, which is _to be relevant to other people_ and start hunting for more and more and more STEEM. Start begging incessantly for votes or go "whales hunting".

Hoping for the value of STEEM to be relevant is one thing, forgetting why we're here in the first place, that's another thing.

So I say let's enjoy the market swings as they happen and for as long as they're unfolding, _and keep sharing and interacting even when STEEM goes down._

It's hard to understand how things really work, because this instant gratification skews reality in a very mischievous way. 

Truth is, you're not making money on Steemit when you're receiving upvotes. You're making money when you're upvoting other people. Because each upvote allocates a part of the wealth to somebody who's deserving it, and each vote generates ripples that, in the end, are coming back to you. 

# Onwards And Upwards

So, there you have it: like I told you, it's not easy being a Steemian. 

But it really, really pays off.

And you don't have to take my word for it, because, like I said, I'm just helping this experiment. 

That's all I do ;)
***
_I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at [Dragos Roua](http://dragosroua.com) where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua._
<center>
![Dragos Roua](http://dragosroua.com/wp-content/uploads/2014/05/bamf-e1448824881306.png)</center>
***
<center>_You can also vote for me as witness here:
https://steemit.com/~witnesses_</center>
***
_If you're new to Steemit, you may find these articles relevant (that's also part of my witness activity to support new members of the platform)_:
* [Rewards: Were Does The Money Come From?](https://steemit.com/steemit/@dragosroua/steemit-newbie-faq-rewards-were-does-the-money-come-from)
* [Netiquette: How To Avoid Being A Steem Douche?](https://steemit.com/steem/@dragosroua/steemit-newbie-faq-netiquette-how-to-avoid-being-a-steem-douche)
* [Witnesses: What Are They And Why Should You Care?](https://steemit.com/steemit/@dragosroua/steemit-newbie-faq-witnesses-what-are-they-and-why-should-you-care)
* [How Can I Mine Steem And What CPU / GPU Power Do I Need For That?](https://steemit.com/steemit/@dragosroua/steemit-newbie-faq-how-can-i-mine-steem-and-what-cpu-gpu-power-do-i-need-for-that)
* [The Beginner Guide To Not Getting Hacked On Steemit](https://steemit.com/steemit/@dragosroua/the-beginner-guide-to-not-getting-hacked-on-steemit)
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vote details (92)
@aschatria ·
$0.17
I don't try much to explain, because most of the people I am connected to in my real life are ordinary workers who are scared the slightest fluctuation on their salary report. Just imagine how would those people react if I even try to explain.
I do, but it is awful. 
They all want security, while there is none.
The others, who are in their well deserved retirements think different. 
They advise me to go for anything I find new, because having a  life like they had, is no fun at all.
👍  ,
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@bapin ·
Well its really hard to be a good steemians like me........ First I think its ordinary sites and do not take it seriously....... But when I got my first sbd in my wallet..... Then that was the time to change....
Though there is not too much satisfying videos on it in youtube that a youngers can follow..... They have to practice... 
Its not that I am successful till now....... But I am trying to be successful....
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@barteksiama ·
$0.25
I remember few years back when I was playing poker for a living when I told it to anyone they would often say: "Oh I know a guy who once won in slots, then lost all even more", or "hazard is dangerous, don't get too deep in this ****". They were too lazy to even try to understand the concept - they only undermined my effort and skill: "you got lucky".

Same thing I see when I try to mention steemit to people. They just refuse to even think about this idea. "it's bubble" "no real value" "ponzi scheme". I think those two situations are very similar - people very often just instantly try to undermine your effort or success... just in a subtle way.
👍  , ,
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vote details (3)
@calatorulmiop · (edited)
$0.31
"whales hunting"- that's racist  man - the politically correct version would be  "interacting why large sea mammals" -geeez

Later edit  -  I was joking and don't want to start a debate over whales or anything of sorts
👍  , , , ,
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@joendegz ·
what he is refering to is the whale wars going on among some whales who downvoting and flagging other whale, it is a bad scenario for the platform
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@pibara ·
$0.17
Flag wars and whale hunting are two different things. You could even say they are oposits in a way. A flag war is what happens when downvotes lead to retaliating downvotes. Whale hunting is basically the human equivalent of a comment bot.
👍  ,
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vote details (2)
@dailyrunner ·
Dragos, this is great post - thank you for sharing! 
I especially liked this part: "Truth is, you're not making money on Steemit when you're receiving upvotes. You're making money when you're upvoting other people. " That resonates with out of steemit reality as I perceive it: when you share and give to other people, this per se is a reward. 
This post made my morning - thanks!
Daily Runner
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@gigwyn ·
$0.20
I like the metaphor. Although i believe there is a great deal of reason to some of the fears expressed the best point i think you make is that steem itself is just secondary. things like reddit gold and likes on facebook make a very similar system that has absolutely no real value to the user. these platforms still flourish because people are always looking to belong and be validated. i think the marriage of the written and video posts on this site will be its key. bringing the diversity of those who do not want to be in front of a camera but still have a voice with the usually large personalities of those who love their camera time will help expand this community faster and larger than all the others. good read good attitude.
👍  , ,
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vote details (3)
@gniksivart ·
$0.17
Steemit is not really a pyramid scheme in that in most of those you're stuck under the early adopters. I have people that started after me that are doing better than me and there are people that started before me that aren't having as much success as I am. 

If early adopters doing better is the sign of a pyramid scheme well I better quit my job then because all the upper management where I work is doing better and I'll never be able to get ahead since I've been employed after them.
👍  ,
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@dragosroua ·
> If early adopters doing better is the sign of a pyramid scheme well I better quit my job then because all the upper management where I work is doing better and I'll never be able to get ahead since I've been employed after them.

great point :)
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@hms818 ·
$0.60
True, it is really very difficult to explain these questions, but one thing i learnt that don't emphasize on money involved in it, just explain that Steem is another social platform like Facebook, where there is possibility to earn some money as well.
👍  ,
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@tombort ·
I use the same explanation too. The second faze come when people talk to me about experience on Steemit after while and almost everybody deduces that its real all about money not about social networking. So I take a stand: So I make a stand! [Upvote Myself no More](https://steemit.com/steemit/@tombort/uvote-myself-no-more)! I will rather upvote people who put some effort in making this platform more social and less steem hunting. I think that this movement can increase some moral value here.
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@joendegz ·
$0.21
i have been through those question especially where the money comes from and the more i try to explain the more they seem lost, steem is still young and it will wither the storm, we need more education on steem and the blockchain cause this is another huddle. Most guys join cause of the money not the writing and the way steem has been up(which am enjoying) most people are coming in to cash in. i believe the best is ahead of us , the paradise shore are on the horizon
👍  ,
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vote details (2)
@tombort ·
So I make a stand! [Upvote Myself no More](https://steemit.com/steemit/@tombort/uvote-myself-no-more)! I will rather upvote people who put some effort in making this platform more social and less steem hunting.
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@lishu ·
$0.20
I know what you are saying, just the other night I explained to a friend the difference between proof of work and proof of stake. And because steem is proof of stake, the resources that go into securing the network are lower than proof of work, this in turn gives the possibility of another type of coin distribution, that goes to content creators in this case. 

It was not easy, but I think i was able to explain it :)

We really have a long road ahead, but it seems it's a beautiful journey.
👍  ,
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vote details (2)
@midural ·
$0.19
Finally, someone tries to explain the inexplicable. I do not understand anything in finance, that's why I enjoy this social network: getting acquainted with people, getting to know interesting things, and sometimes just fooling around. It's bad when everyone tries to measure by ratings and money. Life is deeper and richer than this. All the success!
👍  
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@nishaopt ·
im a fast learner and today i got to learn alot thanks to you guys..hope i had great fun in the steemit and learnt lof of different things..i think it is a good way to spend the time than wasting time on facebook looking for others gossips
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@pibara ·
$0.17
Other then the point you mentioned, there is one thing that keeps me both from understanding and from ever hoping to be fully able to explain those parts I feel I do grasp. That thing is "why is SBD still not back to 1.0 USD plus or minus twenty or so percent?".  

Apart from the creation platform, the idea of a currency usable for trading goods and services at set prizes was the other big thing I was attracted to wrt steemit.  The concept seems solid, but yet it's still way up despite of the apparent measures.
👍  ,
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@remic2005 ·
$0.28
I have the same problems when talking to people about steemit, but for the ponzi system I just tell them that someone who comes after can make more money that someone who came first - and i show proof of that, so they can't say it's a ponzi. 
Second argument is that in a ponzi you have to invest something, but not here on steemit! 

For the second point, I see nothing to add ;) 

Have a good day and a happy new year!
👍  , ,
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@ritue ·
lovely@....  wonderful writing, nice community..
good blog.. thanks for sharing, following up voted
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@rockjon ·
$0.20
Steemit indeed has a larger learning curve. It actually took me a few weeks to actually understand how everything works. People normally come for the rewards but if you stay on here long enough you realize that Steem also has an amazing community.
👍  ,
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@rocksg ·
$0.17
There is nothing Ponzi here and no pyramid scheme. This is a social platform which rewards its users for their time and blogging. It is all transparent.
👍  ,
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@salmanbukhari54 ·
$0.20
No doubt steemit is very complicated to understand but Authors like you are always there to guide minnows and news comers in a very practical way. I learnt a lot from you too and i am big fan of your analytical approach towards Crypto Market. 

Steem On!
👍  ,
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@snrm ·
Not a ponzi scheme at all. Obviously there will be people earning more through being trusted members of the community with steem power with high reps (whales). It is still so easy to join now and begin earning a decent amount, as long as you are making genuine and sincere content and engaging sincerely.
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@sqamemal ·
$0.19
>And here we go, trying to explain concepts like "rewards pool" (oh, so you print money out of thin air, right? - like the central banks aren't doing this 
>
I remember trying to explain the reward pool and the SBD peg to a friend a few months ago. He was no novice at blockchain (built an Ethereum wallet) but he still found it quite difficult to understand this concept. Either that or I'm bad at explaining it to other people.
👍  
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@steemclaira ·
$0.19
i have faced the same situation with my family..for me it was quite hard to insist about the procedure to my mum and dad..they were always complaining that i have addicted to the internet..and it was really hard to explain what im doing on internet :)
👍  
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@steemibu351 ·
steem is an emerging giant in online trading system
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@steemitsabbir1 ·
steemit isthe best.and steemit community writing blog is the best way of life.
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@steevc ·
$0.17
It is hard to explain some of the concepts. I still struggle with why we have SBD and Steem, but I can see they have different uses.
👍  ,
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@surfyogi · (edited)
LET US DREAM NEW DREAMS!

https://steemit.com/steemit/@surfyogi/time-to-dream-new-dreams-welcome-to-steemit
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@teamhumble ·
$0.39
excuse my french. this is fucking awesome writing and so PERFECT for people to find so they can EDUCATE themselves. that's why you were the perfect first person i kinda followed when i got here a year ago! :)
👍  ,
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@dragosroua ·
Je vous remercie, mon ami :)
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@autofreak ·
$0.29
quel joli post!
👍  , ,
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vote details (3)
@tombort ·
Just about today in the morning I have similar thoughts as you. I was thinking in the morning: Is the same as in real word here on this platform. So many greedy, selfish, calculating characters are here. Here, rare are people with higher moral stand.

I decide that slogan of this day will be: All the money of this world is worthless if we lose each other!

So i wrote a quite controversial blog : [Upvote Myself no More](https://steemit.com/steemit/@tombort/uvote-myself-no-more) and declare that I will never upvote my content from this moment on. I believe that we should upvote each other not ourselves. Self upvoting is selfish and controversial. 

Then I start a blog serious For Better Steemit. here is the first blog: [Wealth is Worthless With out Us (#1)](https://steemit.com/steemit/@tombort/for-better-steemit-wealth-is-worthless-with-out-us-1).

But what strike me at most was two polite comments from two Steemians for which I thought that they have quite high moral stand (@briggsy, @futuristgear) but I found out that they are also akin to collecting wealth here on Steemit. My opinion is that this two comments shows well a current social state of Steemit, where is collecting of Steem more important of creating social network of contacts with other people.

I was just sad!  So you save my day with your writing and make my mood better.
 
If I get your main point it can be compacted in this quote:
>The main reason being on Steemit is to be social. That's the basic function of this place. To write. To interact. To support.
***
p.s. You can also check my blog, I write TA, could be interesting to you.  Here are the latest samples: [#6](https://steemit.com/bitshares/@tombort/bitshares-analysis-bitshares-breakout-turn-into-a-rally-6), [#3](https://steemit.com/steem/@tombort/steem-analysis-steem-bulls-blitzkrieg-3), [#23](https://steemit.com/cryptocurrency/@tombort/bitcoin-analysis-downtrend-continues-some-targets-for-the-bottom-23)
 And I like that you from Europe not so far away from me. I wish to meet you some day in Bucharest! Never had been there.
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@toofasteddie · (edited)
$0.20
I share with you your concerns, not always easy to explain how this technology works but, day after day more people is changing their mental model, entering to steem positively and understanding it more and more.
We have to keep working in order to promote the project.
Post like this are very worthy and I would use it in case someone needs more info apart from mine.
Steem on!
👍  ,
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vote details (2)
@xalos ·
$0.17
It might be really hard initially but I think eventually everyone will eventually reach and prosper in the promised land of Steem.
👍  ,
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