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.
Not if they can generate significant transaction volume. Please read the rest of section that I linked you to.
Whereas, STEEM holders are paid nothing while the total supply of tokens is debased by 100% annually. Thus, STEEM holders lose 0.19% per day³, 1.34% per week, and 50% per year of the total Steem market capitalization.
https://poloniex.com/lending#BTCWhy do you think borrowers on Polo are rarely willing to pay >0.02% a day to borrow?
(Because there's very few investments speculators confidently think can consistenly outperform that borrowing rate.)
Yet you're expecting a greater fool to continue buying Steem even though there is no revenue or business model and at a daily cost of >0.1%...
Unfortunately once speculators start to look into it more I think you will find demand for Steem drying up.
You didn't even read carefully my blog post which I told you refutes your points:
https://steemit.com/steemit/@anonymint/it-s-so-easy-to-become-a-millionaire-with-steemThose holding STEEM (and not STEEM POWER) are doing it for short-term price speculation. They are diluted every block, thus providing the funding and cash flow. The others who MUST hold STEEM are those who need to transact in STEEM. Again while holding STEEM (even for short periods of time), they are diluted every block, thus providing the funding and cash flow.
Please don't make me repeat the same point 4 times.