RE: RE: STEEM's Biggest Villian
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RE: STEEM's Biggest Villian

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7y

If both gain capital, you might need a different
word than capital gain to distinguish the diff
between profiteering and "ethical gains?"

You know what the funny thing is, outside of the whales who ninja-mined; Most people who bought their whale status bought in as speculators and speculators are profiteers. Their goal isn’t to add value, but to get in and extract value and then bail. But nobody predicted the BTC bubble collapse or understood how it would take all the crypto down with it. So they just stared at the falling prices pot committed certain that it would go up again because Steem is awesome, more specifically it’s awesome at profiteering off the creativity of others. Steem WP Zipf’s law [Page 16 of 32.]

"The economic effect of this is similar to a lottery where people overestimate their probability of getting votes and thus do more work than the expected value of their reward and thereby maximize the total amount of work performed in service of the community. The fact that everyone “wins something” plays on the same psychology that casinos use to keep people gambling. In other words, small rewards help reinforce the idea that it is possible to earn bigger rewards."