Steem pyramid scheme revealed

[DecentralizeEconomics]

[sofu]

https://steemit.com/steemit/@afilja/is-steemit-a-ponzi-lets-investigate

[Dafar]

I just used 3.6 BTC to buy Steem and power up..... you mother fuckers should have told me this yesterday


Ahh! Oh well, with the amount of traction it's already getting it may still grow higher?

[Mickeyb]

I just used 3.6 BTC to buy Steem and power up..... you mother fuckers should have told me this yesterday


Ahh! Oh well, with the amount of traction it's already getting it may still grow higher?

It's on POLO & everywhere, it means they are growing. If you wont get hospitalize if you lose those 3 btc then HOLD.

[raphma]

I just used 3.6 BTC to buy Steem and power up..... you mother fuckers should have told me this yesterday


Ahh! Oh well, with the amount of traction it's already getting it may still grow higher?

you still are on the top of the scheme, so calm down we have time to make some profit and get out.

[Febo]

It doesn't end there though, they have designed a system where they have so much voting power compared to everyone else that they decide where the pool's money is being allocated, so if they want to pay themselves and their buddies they can do it just by a mouse click.
They can also create sockpuppets account and vote for themselves.It's like a fucking cartel, they are the first crypto mafia.
They also get to decide what goes on the front page so obviously they chose to upvote boobs and steem praise, there is nothing better than vagina to prop up a massive bubble.

This is the point of all. If people will want this power for themselves they will need to buy it. If they will then Steemit will be a success.

Is this power so tempting that people will put millions of $ in it?  who will want this? Maybe a tobacco industry?

[Dafar]

It's on POLO & everywhere, it means they are growing. If you wont get hospitalize if you lose those 3 btc then HOLD.

I won't get hospitalized haha. But I hate seeing my BTC count go down. There's a certain amount I want to HODL in case we see another rally this year. I think I will just rebuy when I get paid tomorrow.

you still are on the top of the scheme, so calm down we have time to make some profit and get out.

Yay I'm on top! For once!!



But here's the thing... if I power down now I have to wait a full 2 years to get my 3.6 BTC back. That's an eternity for bitcoin. I'll basically be getting payments of 0.0346 BTC every week for the next 104 weeks.

My concerns about that are:

1. What if BTC skyrockets and steem value stays the same?
2. What if Steem gets hacked again within that time?
3. Time value of money... having 3.6 BTC now is much better than getting it over the course of 2 years
4. Am I really trusting that the Devs have thought this through.... that they not only understand crypto but also ECONOMICS enough to know that this ecosystem is sustainable?

Since I powered up, the obvious choice is to HODL and keep gaining interest on SteemPower. My reasons for powering up were:

1. The interest that SteemPower gets is very good, every time I refresh my SteemPower grows
2. This high interest rate will only last for 9 months... so might as well take advantage of it
3. The user growth rate is extremely impressive. It may be the first "killer app" in crypto
4. There is a small chance that I could be a REAL early adopter of this... this is only 3 months old
5. Since this is so new, and already getting so popular, and only has 30K users at the moment.... the growth side is huge, and even if this platform ends up NOT being sustainable.... there's a good chance that at least for the next few months it keeps on growing, I keep on acquiring interest on my SP and by the end of 9 months I am HOPING that I have acquired a lot of interest and the Steem price has at least doubled to make my investment worth it

[Nippel66]

LoL wath a funny threat.
Cant do annything else than lought of you boys

[raphma]

My concerns about that are:

1. What if BTC skyrockets and steem value stays the same?
2. What if Steem gets hacked again within that time?
3. Time value of money... having 3.6 BTC now is much better than getting it over the course of 2 years
4. Am I really trusting that the Devs have thought this through.... that they not only understand crypto but also ECONOMICS enough to know that this ecosystem is sustainable?

1. there's always this risk.. you can make this same question for any investment in bitcoin.
2. same answer ^
3. yeah sure. but dont forget about the reason why you powered up. to have profit with this you will need to "work" in steemit. With more power you will earn more from PoS, curation and other things.

[Dafar]

My concerns about that are:

1. What if BTC skyrockets and steem value stays the same?
2. What if Steem gets hacked again within that time?
3. Time value of money... having 3.6 BTC now is much better than getting it over the course of 2 years
4. Am I really trusting that the Devs have thought this through.... that they not only understand crypto but also ECONOMICS enough to know that this ecosystem is sustainable?

1. there's always this risk.. you can make this same question for any investment in bitcoin.
2. same answer ^
3. yeah sure. but dont forget about the reason why you powered up. to have profit with this you will need to "work" in steemit. With more power you will earn more from PoS, curation and other things.

What's your steem account? Let's become whales and upvote eachother

I'm @dafar

[iamnotback]

2. This high interest rate will only last for 9 months... so might as well take advantage of it

What makes you think that? I don't think that is correct. The Steem Power compounding is perpetual.

[Dafar]

2. This high interest rate will only last for 9 months... so might as well take advantage of it

What makes you think that? I don't think that is correct. The Steem Power compounding is perpetual.

I read form a post by dan himself if I remember correctly... I think the interest rate changes 

[iamnotback]

2. This high interest rate will only last for 9 months... so might as well take advantage of it

What makes you think that? I don't think that is correct. The Steem Power compounding is perpetual.

I read form a post by dan himself if I remember correctly... I think the interest rate changes 

I am bit confused about this. There is one form of compounding that comes from the perpetual creation of 9X Steem Power for every 1 Steem that is minted. Those 9X SP are distributed proportionally to all SP holders. So your SP holdings are always increasing. I don't think it ever ceases nor changes.

Is there also another form of interest paid on SP?

[Mickeyb]

What's your steem account? Let's become whales and upvote eachother

I'm @dafar

hehe, but how should that be possible ?

[nomoreheroes7]

2. This high interest rate will only last for 9 months... so might as well take advantage of it

What makes you think that? I don't think that is correct. The Steem Power compounding is perpetual.

I read form a post by dan himself if I remember correctly... I think the interest rate changes 

I am bit confused about this. There is one form of compounding that comes from the perpetual creation of 9X Steem Power for every 1 Steem that is minted. Those 9X SP are distributed proportionally to all SP holders. So your SP holdings are always increasing. I don't think it ever ceases nor changes.

Is there also another form of interest paid on SP?

I think you guys are confusing the SP compounding with Steem Dollar interest (which is currently 10%). Steem Dollar interest is subject to change. SP compounding just keeps on going, as far as I understand it.

[magicalacademy]

https://steemit.com/marijuana/@kell234/berniesanders-make-crazy-upvotes-again-20-upvotes-with-cost-10k-sdollars-in-article-about-marijuana-who-is-he-and-why-is-it-done#@calva/berniesanders-make-crazy-upvotes-again-20-upvotes-with-cost-10k-sdollars-in-article-about-marijuana-who-is-he-and-why-is-it-done


this is why steemit is doomed. Whales's sockpuppets create shitty content and upvote themselves to the top. That's why you get a pic of a cannabis bud worth 4k usd, then the whales upvote all their sockpuppets in that same shitty thread. Essentially they earned themselves 14k usd for posting a cannabis pic and obviously all these whales are powering down.

[DlakavaKobasica]

Public Service Announcement -
This is just another Ponzi/Pyramid Scam
Do Not Invest!

Those who choose to post of their participation
support or encouragement for this scam will
be tagged with negative trust for proving
they wish to help the scammers operate this
Ponzi in return for a share of the funds stolen
from other users. Thereby proving they are not
trustworthy forum members.

YOU HAVE BEEN WARNED!

[iamnotback]

My analysis thus far:

So far, the most significant flaws I observe thus far in Steem are:

• There is too much selling pressure because users get paid 50% of blogging rewards in STEEM (and miners/liquidity providers) which can be cashed out immediately, and this amounts to > 50% debasement per year that can be sold. The users who are coming to earn money because they need or want money, so they are likely to cash out as much as they can. If rewards were predominately paid in STEEM POWER which has a 1 year weighted average divestment schedule (2 years total), then users might be less incentivized to signup?
• The dysfunctional voting+ranking system and the whales having too much influence needs overhaul, but at least this is probably doable. However there is a tension between the promotional hype value of very high rewards (that motivate users to join) and fairer distribution of rewards.
• Eternal 100% debasement is not sustainable. The debasement rate should be supported by actual transaction fees and drop to that level at some point.
• The 80-90% "pre"-mine is resented by many potential investors who could otherwise be supporting the funding model while transactions are given time to be developed and ramp up. Note that new signups need to have some tokens, else they have no stake-weight to even post or get started with. Perhaps we could use UNPROFITABLE proof-of-work mining instead to get them enough tokens to get rolling in a decentralized paradigm?
• Nothing is incentivizing transfers other than cashing out. I have a radical proposal in mind to improve this.

Whales will become totally irrelevant when the user base and posting volume increases by 10x or 100x or even 1000x. There just aren't that many whales and whales have the same voting power restrictions as anyone else. A rare whale sighting will be a big deal.

You presume all whales are benevolent. Stake will eventually end up in a power-law distribution, because perpetual 100% debasement is not sustainable (even the transactions fees of the entire earth could not support it).

Also it is incorrect to say they play by the same rules. 3 x 3 = 9 is not 1/2 of 6 x 6 = 36.

Any way, I have proposed a partial solution.

[magicalacademy]

http://thestringpuller.com/2016/07/a-steeming-bubble/

[mchwierutSC]

https://steemit.com/@steemit/transfers

https://steemit.com/@ned/transfers

https://steemit.com/@dantheman/transfers


Those are steem founders's wallets, they own a shit loads of steem yes i know. They own about 80% of steem .


You know what's funny is that they tell you to power up but they are powering down all 3 accounts and cashing out $2 Millions every week.

And fools on poloniex are buying up all the steems hahah and best of all the founders's money is growing extremely fast so they have essentially set up a system where they could cash out $2M every week for life until the ponzi come crashing down of course but these devs are fucking geniuses.
It doesn't end there though, they have designed a system where they have so much voting power compared to everyone else that they decide where the pool's money is being allocated, so if they want to pay themselves and their buddies they can do it just by a mouse click.
They can also create sockpuppets account and vote for themselves.It's like a fucking cartel, they are the first crypto mafia.
They also get to decide what goes on the front page so obviously they chose to upvote boobs and steem praise, there is nothing better than vagina to prop up a massive bubble.


In 3 years all the new steem power that was created out of thin air to enrich the devs will be detroyed at a ratio of 10 to 1. So if you have 10 SP they will burn 9 from you and everyone else including themselves, But they don't care becasue in 3 years the devs will be in their private yacht  sipping mojito with lots of bitches while you will be powering down but it's gonna be too late my friend.

And you know what they say when you ask but why are you destroying 90% of my wealth in 3 year? They say don't worry  hopefully the price will increase to make up for it rofl It will not because they would have crashed it to pay for the yatch lol

RIP steem power holders.

http://thestringpuller.com/2016/07/a-steeming-bubble/

How can you tell they are powering down? Is there something in the interface that alerts that or are you tracking the growth of their SP?