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RE: Where does the money being distributed come from ?
The money is coming from me .... partly ;-)
I bought as did a lot of other people some Steem, that I transformed to Steem Power ... The value of things is given by the perception that people have of it ...
At the beginning one bitcoin was 1cent, now it's 600$, where does the money come from ? Same question
bitcoin, or any currency for that matter has only the value that people give, which "FAITH". Paper money or crypto currencies have no intrinsic value.
In the case of Steemit, they are distributing before cashing, in other words, they are giving what they don't have, and that can only have two explanations, either they have a money reserve, or they are running on the hope that the system will work and people will be buying Steem.