Re: Steemit how can this thing be workable long term?
Reddit raised funds in 2014 at a valuation of $500 million. https://en.wikipedia.org/wiki/Reddit
Steemit is valued at >$300 million despite having < 0.5% the market share of Reddit.
https://steemit.com/steemit/@skapaneas/steemit-analytics-comparing-david-and-goliaths
Reddit will generate $30 million revenue in 2016 but will likely still be in the red after expenses.
Steem will generate no revenue in 2016 and have MUCH higher expenses than Reddit because it's paying users for content.
Over-valued...
Steemit is valued at >$300 million despite having < 0.5% the market share of Reddit.
https://steemit.com/steemit/@skapaneas/steemit-analytics-comparing-david-and-goliaths
Reddit will generate $30 million revenue in 2016 but will likely still be in the red after expenses.
Steem will generate no revenue in 2016 and have MUCH higher expenses than Reddit because it's paying users for content.
Over-valued...
https://steemit.com/steemit/@alexgr/market-value-of-steem-can-become-much-higher-than-reddit-here-is-why
...and I haven't even included the Facebook-commenting/Facebook-discussion oriented crowd in the equation.
Each user on Facebook, Reddit and Twitter has a value based on what investors think they are or will be worth to advertisers (advertising revenue) less the running costs of the business.
http://www.forbes.com/sites/georgeanders/2013/11/07/a-twitter-user-is-worth-110-facebooks-98-linkedins-93/#3da863619c12
Steemit has no revenue from advertisers/other to cover running costs and most importantly is paying out large bonuses to attract new users and large amounts for their content. (Which other social media platforms get for free.) So Steemit is just a bottomless pit of expenses and no revenue.
Synereo on the other hand for example does have a business model. A social media site, where the majority of advertising revenue goes to the users in return for consuming advertising content. So that has the potential to be a lucrative, sustainable business model and Facebook killer.
The minute speculators stop buying Steem it may collapse because there is no business model or revenue source only the hope speculators will value a site attracting users and not use common sense.