Steem will generate no revenue in 2016 and have MUCH higher expenses than Reddit because it's paying users for content.
Incorrect. I added the following to my blog post to explain it:
Steem is generating revenue for STEEM POWER investors taken from those who hold STEEM instead of STEEM POWER. We need to upgrade our conceptualization of revenue. Revenue is any gain in value not paid by the long-term investors! It is actually quite a clever paradigm-shift innovation on the definition of a revenue generating investment.
Yes but as I said,
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.
So you're just relying on a greater fool/speculator buying Steem to support those expenses because there is no actual underlying business model or revenue source.