Preface: 

Your PUMP articles are the REASON people think it's  a scam, so continue:

" Most of the articles on Steemit are promoting steem, which makes it seem like a variation of a Ponzi" - link

Anyways, they're half-right!

I have been working on my tone, but I apologize in advance if it's still abrasive.

There have been a flurry of posts claiming that Steem isn't a Ponzi.

The main argument they gave:

- How is it a Ponzi if I invested nothing?

 A Ponzi is not an Exit Scam!

A Ponzi is financing current investors with previous investors' money.

Mentions: Hive account@sigmajin for shining a light on this.

STEEM power = Amount of STEEM it takes to purchase your VESTS

A VEST is just a stake in the money that flows through the STEEM network.

Essentially, a restricted stock in a company.

To learn more about Vests click on this link.

SBD is an IOU = A promise to buy a token for $1 at some point in the future

The Ponzi

Ok, I want to sell my VESTS (i.e. "Steem Power"), who'll buy it?

1. People who are being pumped to buy Steem Power

2. People who are buying SBD

Number 2 is used to prop up number 1.

If no one wants to buy STEEM Power, and nobody bought the SBD IOU ...

You will not be able to liquidate your STEEM Power, full stop.

If enough people don't buy STEEM Power, and not enough people buy SBD...

You will not be able to liquidate your STEEM Power, full stop.

What the network relies on:

1. Pumping SBD IOU buying through incentivized trading. 

2. Pumping STEEM Power (VESTS) buying through voting power, and upvoting pump posts.

This is a semi-Ponzi and no one can tell you it isn't.

But it's designed well enough that it should last!

See? 

No need to lie!

Note:

As long as people are trading SBD, you will make money on Steem. 

So don't worry. 

Only your Steem Power can lose all it's value.

Fun fact: Madoff's Ponzi lasted over 10 years

#steemit #money #investments #marketing #trading