Does Steemit inevitably turn into de facto Investment Platform?
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“To him that hath, more shall be given; and from him that hath not, the little that he hath shall be taken away.” (Matthew 25:29) The rich have become richer, and the poor have become poorer... - Percy Shelley
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I have been mostly passive or absent on Steemit during the large part of this year and was surprised and even somewhat shocked to find out quite big changes after HF20. Particularly that I wasn't able to do some simple stuff even as much as upvote due to the lack of the so called "Resource Credits" i.e. RC (which BTW are still not explained in FAQ as of now).
To be able to post new yesterday's article in my blog I had to wait almost 48+ hours to have sufficient RC for that and it cost me like 30%+ of my RC (mana). Another thing is: some of my friends who tried to join Steemit after my advice - can't either do it as easily as I was able to: for free and fast (practically instantly). They get 2 options now: either wait in queue (like up to 2 weeks? LOL) or ... pay something like 2 Steems (well, basically almost $2 at present rate). That was perhaps even bigger shock for me! Because I mean: wasn't this whole project widely promoted and praised for being and ALTERNATIVE to the "mainstream" social media?
Seems like Steemit has turned into sort of investment program - instead of "alternative social media" as it was originally made, which not only allowed to do all those things for Free (as most of mainstream social media still allow to) but even paid for that. Now though it looks like things got totally opposite: now to be able to do any of such things - one has to pay for that first! LOL
Let's get things straight: wasn't Steemit originally created with an idea and mostly became popular because of the whole opportunity to EARN from blogging / posting, voting (= likes)? and from all similar stuff which people previously did on social media for free and it was possible to post, vote for free too! Now though ... even to make 1 single post (even for those already registered over a year ago) or even for a new member to register new account - EVERYTHING, every single action - it freaking COSTS !!! Even as much as tiny action of EDITING of one's own post or comment! LOL
To remind myself the basics I've looked it up in FAQ:
What is steemit.com? Steemit has redefined social media by building a living, breathing, and growing social economy - a community where users are rewarded for sharing their voice. It's a new kind of attention economy.
Alright, word "economy" is there, which is somewhat related to money, income, profit. But still there is nothing said like "one has to pay for each and every BASIC thing", neither such words as "investment" are mentioned in there yet. "Attention economy" is quite vague phrase which doesn't actually reflect the FACT that : those who have more SP (and RC) are getting more of that "Attention" and accordingly their personal "economy" (wallet value) performs much better than those who has meager bits of SP.
Back in 2016 it was more focus on the following: Steemit: New Social Media Platform Which Pays You to Post
Now though it de facto has became: "You have to pay to post" :D
Reading the article and trying to find the clear definition of this Steemit project in it original (or near to it) concept. Word "cost" used only twice in whole article and NOT in relation to users! What's more:
Larimer also stands by EOS’ fee-less system, which requires DApps to cover network costs:
“Lastly EOS is designed around the idea that service providers (DApp Developers) should cover network costs, NOT the users. A good application needs a monetization strategy that is fully independent of network operation. “The existence of Steem is all the proof we need to demonstrate the value of "free" transactions and how we solve the issues with users needing stake.”
Pretty simple and clear : users are rewarded for participation and not expected to cover the costs, network costs are covered by Devs! That's how I remember it in those early days: Steemit was mainly attractive for rewarding (paying) to members for content creating and socializing - that's why it became so popular so fast within short time! Here is another article from 2016: "Steemit Social Media Platform Pays Its Users, Sees Massive Growth". Worth of emphasis: "social media" (not an "investment program") and "PAYS its users" (not "users are made to pay to use it") and that's why it has enjoyed "Massive Growth"! Try to imagine: would it have such "Massive Growth" it from the beginning those members were told that THEY have to pay for each and every action (which they do NOT have to on normal social media)? and that they'll have to INVEST (into Steem cryptocurrency) and sort of de facto "Lend" it into the system (i.e. into SP) to have a better chances to do all those basic trivial actions?! I think the answer is obvious: very unlikely! NOT with all the might of mainstream social media (FB, YT, Instagram, etc) already dominating the industry - providing all those things for FREE!
Well, curiously, there is another article back in 2016 on Investopedia, which I suppose may be considered as some relative relation of Steemit to sort of "investment project".
Steemit uses an algorithm to determine the value of each user's contribution, the more often a user contributes to the platform, the more their influence grows...
To recap, Steemit differs from blogging sites ... that writers can get paid by the community...
Even though more like business (or finance) language is used in the article, yet "value of contribution" reflects more like one's efforts, skills, talents, activity - but NOT the "INVESTMENT"! (be it in fiat money or in crypto)
Neither it is said anything like "Those who has more SP (and accordingly Steem cryptocurrency invested into platform) - estimated by the algorithm as having more value". As it basically became now after latest changes (HF20): "more value have those who invests more and able to PAY more".
Noticeable part in this article is about SP which for me kind of confirms that Steemit has some form of "Lending program" (although rather word "staking" is used):
"Steem can also be converted into "Steem Power," which locks up their value for a two-year period. During this time, the Steem Power in your account grows through a process known as staking."
LOL ! Tell me how it is so much different from all those "Lending platforms" ! :D
(Which the whole Steemit was in such a raging uproar about during almost whole last and big part of this year - calling them "scam" etc)
Where it was also basically the same: one has to purchase their cryptocurrency coin (as Steem in this case), then basically INVEST it (aka "Lend" to the the system) for a period of time (during which it would also be locked up) and then get the commissions (dividends) from that - as said in this article "account grows". In fact it is nothing new or much different from various HYIPs either (same basic scenario: invest some amount for period of time, it gets locked-up and you get interest; the more you invest - the more you get paid). Main (if not the only) difference from HYIPs is more like that Steemit deals with crypto instead of fiat - apart from it being much more steady and reliable (almost infinitely long-lasting).
Oh, "Vesting" (instead of "Investing") is actually mentioned in FAQ briefly: "Vesting - STEEM tokens that are powered up to Steem Power will earn a small amount of new tokens for holding." - and so does "Lending" or ... banking ! :)
Also long enough (still 1990s ?) before Steemit and even BTC and any Crypto there were (and still are) various GPT sites ("Get Paid To" do stuff, as "Paid to Surf" or "Paid to Click" and all sorts of things as surveys, games, tasks) - which still do NOT charge users to pay for basic actions as Steemit does now - but rather pay their users. After all that's what all those people came there for! :D
Sure, there is nothing wrong with people getting chances to earn something for their efforts and being rewarded by community and system - but at least it is better when it is made clear enough that is an INVESTMENT (and de facto "Lending") project - not just some "Get Paid for socializing" and without need to pay for that yourself. :)
Now though it is not that anymore as it was initially introduced and widely promoted. Forgive me for being blatant: it rather reminds of some kind of "bait-like" style schemes - when initially (or for some period of time) people are given some "freebies" (or in Crypto it is called "Airdrops" I suppose) and then some sort of "hidden fees" emerges later or something like that.
Certainly FB and all such social media are no better (in fact even worse). But that's just kinda funny how things eventually turned out to be totally turned 180 degrees: now even to register new member is being told to pay some Steem (or else wait up to 2 weeks or something for free approval). I mean - that's even tougher than "normal" social media : at least so far anyone still can register for FREE on most of it! (YT, FB, Twitter, etc). and post the content for FREE too !
I know that obvious argument would be like "but Steemit provides opportunity to earn, unlike that other social media". Still it doesn't change the fact that it has become more like some kind of "Investment" programs.
Not even talking about whales / sharks / dolphins thing : in other words those who have more STEEM (and thus "Steem Power") have more chances to post / vote / curate / witness / comment etc. in other words ... to EARN more!
Then what makes it so much different (if at all anymore) from the normal "law of jungles" style real life based on Fiat? since it is precisely the same state of affair as in "real" (i.e. fiat) world: rich getting richer, poor remain staying in shit.
Say, there are people who are able to create good content, but don't have enough SP (and RC, since recently) - then they are at obvious disadvantage in comparison to SO MANY others, who just drop 1-2 lines, some picture and yet get so many upvotes and thus rewards (i.e. SP / RC boost) - just because they .... have more Steem ! In other words, one can simply buy Steem and let's be frank, INVEST it into STEEMIT, then also participate in various clubs and "mutual funds" (aka "trails" etc) and be able to enjoy higher "popularity" and following. While some others who do not have such opportunities, say, especially from some developing countries (income is different there to be able to invest in anything online as well as language barrier may be a hindrance too), but may be are capable of creating much more GOOD quality content (than hundreds of those who posts few lines to imitate the "regular activity") - they are not able to as much as come near those "richer" so called "bloggers", what to speak of contesting with them at all!
I wonder how this is any different from the "real world" of fiat?
with all their investments, schemes, MLM (affiliate), derivatives and all such other "financial instruments".
Perhaps it would eventually come to the point when Steemit would be officially announced as an Investment Project? Which in fact it has already become almost with all the RC costs and "more Power to those who has more SP" = those who're get richer because they have more chances to earn more by doing more actions per day (aka "interactions with blockchain")
Related:
about general notion (rich get richer)
https://steemit.com/mental-health/@hellpas/why-do-the-rich-get-richer-and-the-poor-get-poorer more
particularly about recent HF20 changes:
https://steemit.com/steemit/@davemccoy/new-ad-slogan-steemit-where-the-rich-get-richer
he offers appropriate new slogan made into banner:
Apparently I'm not the 1st and the only one to notice this and trying to point it out.
So, what do you guys think about all this - Perhaps I greatly misunderstand the whole thing? then please correct me if I'm wrong. Please write your thoughts in comments, Upvote, Share this post with others and you're welcomed to Resteem it too! :)