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RE: Response to Coindesk Article “Steem Provokes Doubt of Market Observers”

in #steem8 years ago (edited)

Great post. I've also been hearing from a lot of bitcoin maximalists - "why do you need to create a new coin?" The answer is that we've seen social networks try to use BTC-based incentive systems already and it hasn't worked (Zapchain, Changetip). These didn't even face the scalability problem because they didn't get enough traction - the bigger problem is bootsrapping the network. Someone has to pay to incentivize content creators! Users don't want to (mental txn costs) and startups don't have the capital .

Paying content creators directly from the blockchain is a very clever way to bootstrap the network, and you need a new token for that.

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The best answer to such a question is this:

"Piling every proof-of-work quorum system in the world into one
dataset doesn't scale." - Satoshi

Bitcoin wasn't meant to be a social network / content network database.