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RE: Introducing: Steem Pressure #1
Hay @gtg - Nice to see this series has been started <3
Can you also loose some words about the costs and rewards for witnesses? While you are totally right by saying "Hardware is cheap" I think it is still a first barrier for new poeple to rent a server for 40$ per month.
Do the witness rewards are enough to pay your hardware costs or do they just lower your losses?
Thanks in advice and best regards!
Even though I was here on Steem pretty late compared to many other witnesses I'm from "the old school", so in my humble opinion, witnesses are here to serve the platform.
So while looking just at ROI is a valid approach from the business point of view, I think it is potentially harmful for the platform. Because what if the price of Steem would go down to levels that we had in March? That would make every $100 to turn into $1,20.
So if one thinks about earning on Steem platform, then the answer is simple:
"Blogging is the new mining." (TM)
Easier, faster and more scalable.
PS
Hardware is cheap but I don't think $40 is enough to run reliable witness node these days, not to mention witness infrastructure.
(More on that in future episodes)
You know way more about this than any of us here. Can you explain that line further . . . "Blogging is the new mining."? Are we actually contributing to the Steem blockchain by contributing content? How does that actually work? As much as I am into the cryptos that are produced by these mining activities, the blockchain technology is still esoteric. I have a lot of questions but don't want to consume all of your time. If it's cool to post questions on here, I'd love to know. TIA
It's about how rewards are allocated on the Steem platform. Block producers, aka witnesses are getting only small (smallest) portion of stake distribution. More goes to stake holders (interest) and curators. Majority of rewards are allocated - of course - to authors (unlike bitcoin and many others where it goes to miners).