This video is basically my attempt to answers @travelling-two's question in this video:
https://steemit.com/dtubesnapq/@travelling-two/bfrstp74
He asks:
"Where does the money for the reward pool come from? It's a question I know I will and have got when talking about Steemit and all the other dapps on the Steem blockchain. I have still yet to find a simple answer for the average person out there. With a simple and effective answer, it should be easier to convince unsure potential users about the platform. What is your best way of putting it? I would like to know!"
My answer does not qualify the criteria of being simple, but.....
The 'money' or currency of this blockchain is not dollars but Steem and they are printed at a rate that is decided by factors that we won’t go into. The basic idea is that it is the total market cap of the coin that counts. The total market cap is divided between all Steem tokens equally.
For the price of Steem to rise, the market should value the Steem products/services at an increasing rate that is higher than the print rate of Steem. We also need to understand that money is basically pegged to the trust of the people using it.
The thing is that there is no simple answer. It is not that the answer itself is not simple. It is the fact that to understand the answer we need to understand the definition of money and how it works in reference to market forces.
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