Steem For Investors #2 – How Steemit Will Revolutionize Online Advertising

Tai Zen: Okay. We are now live, bro.

Leon Fu: All right. Your video is frozen, but I can hear you on my end. Okay, now I see you. Yeah.

Tai Zen: Okay. Now, we get that done. Just double checking to make sure on the broadcasting. It looks like we are being broadcast.

Leon Fu: all right.

Tai Zen: I don’t know why your title bar is not showing up there

Leon Fu: Figure that out later.

Tai Zen: All right guys. Welcome to the cryptocurrency market channel here. My name is Tai Zen. I’m one of the oracles of cryptocurrency. On the line with me, we have one of the other oracles of cryptocurrency, the Mr. LeonFu.com. Do you want to also introduce Andrea too? She’s on the sideline.

Leon Fu: Oh I don’t know…

Tai Zen: Okay.

Leon Fu: Do you want to say something?

Tai Zen: Say hello

Andrea: Hi

Leon Fu: Okay. Anyway, I am working on my camera set up here.

Tai Zen: All right. We got LeonFu.com’s girlfriend, Andrea. She’ll be on the sidelines and chiming in. There she is. Hello Andrea. She’s getting prepared to shoot her video. I think it will be her first video for Steemit, right?

Andrea: Yeah, we’re going to take some Steemit photos, so I’m making a Steemit sign

Leon Fu: We’re still working on that. We’ll see that maybe on a day or two.

Tai Zen: Okay. This is what happens when you are successful at investing in cryptocurrencies and you end up having a lot of free time to make Steemit signs.

Let get started. In this video, the honorable LeonFu.com and I are going to talk about how Steemit is going to revolutionize the ad industry online in the advertising world. This is going to be huge.

The way that online advertising works right now is that we have content creators such as us to create content online on our own time. The reason is we enjoy doing this and helping other people make money in the cryptocurrency space, especially the people who maybe be scammed or anything like that.

As we are creating this content, one of the ways that Youtube pay us is that whenever they see how popular our videos are, they put advertising on top of the videos. When people click on those ads, we get like one penny or something like that.

I mean it’s negligible. We don’t pay attention to it. We use the money that we make from it in a year to pay for the hosting for a website and stuff like that.

It’s not something that you’re going to get rich off of, not right now anyway cause we only have like 3,600 subscribers. It’s on track to get about 4,000 by the end of this month.

What happens is this. We have this new cryptocurrency platform or at least a social media platform, which is based on the cryptocurrency technology. It’s called Steemit.

Do you want to talk a little bit about what you explained to me the other day of how the word Steemit comes from?

Leon Fu: “Steem” as self-esteem. It’s a play on the word esteem. They just drop the “e”. Besides, there is an idea of Steem power. As you had mentioned, this is the idea where the Steem is what powers the platform because it’s the unit of value that is in the platform.

Tai Zen: Just denominated in Steem.

Leon Fu: By the way, I’m hearing you’re cutting in and out like every word you’re saying.

Tai Zen: Okay.

Leon Fu: I don’t know If there is any problem with your bandwidth or something because I barely hear you.

Tai Zen: I’m not sure what’s causing it. I hear you perfectly fine.

Leon Fu: Okay. It could be on my end. Let me try to shut off the video.

I can’t hear you anymore, Tai. Hello?

Tai Zen: Okay. I’m not sure what happened.

Leon Fu: All right. Can you hear me?

Tai Zen: Perfectly

Leon Fu: All right. I can hear you too. Maybe I’ll clean up anyway. Go ahead.

Tai Zen: Let me just do a sound check real quick here. Robert, one of the viewers, says we’re cutting in and out.

Leon Fu: Am I cutting in and out or are you cutting in and out?

Tai Zen: I think it might be me because I hear you perfectly.

Leon Fu: Yeah I would cut the video, Tai. Now everyone has seen us. It’s more important to hear than see us.

Tai Zen: Okay. I’m going to try it out later.

Let me just cut off my video here. Maybe that will help increase the bandwidth.

Alright, we’ll be talking about Steemit. When I was discussing this with Leon this morning, we think that this is going to be a big breakthrough in how the online advertising agency is going to work out in the world.

In case the previous part was too choppy, let me just quickly explain it again the way online advertising works.

Content creators such as I and LeonFu.com create free content and put it online. When the advertisers see our content, they put ads on top of it. It could be an article that I wrote or an article that LeonFu.com wrote. Based on that, the advertiser would put ads on top of it. When you click on it, they pay us a small fee for it.

Right now, the money that we make from the youtube channel is very small because we only have 3,600 subscribers. It’s small in terms of the overall youtube community. In terms of the cryptocurrency community, it’s the fastest growing and most popular cryptocurrency investing channel on the Internet period.

In this morning, I was talking to Leon Fu and he said that something about advertising that really is a game-changer, so do you want to share that with the audience again?

Leon Fu: Okay. Let’s talk a little bit more about Steemit. Steemit is based on blockchain technology. It came out of the BitShares project. The founders of Steemit are the same behind the Bitshares project, which has been around for a few years now.

However, the game-changing part of it is that the money is actually issued by the blockchain directly to the content providers.

Tai Zen: Hey Leon, why don’t you turn your video on since you’re you have good bandwidth over and I don’t.

Leon Fu: All right. Can you still hear me?

Tai Zen: Yes

Leon Fu: The revolutionary part of it is that when people upvote your content, they’re not paying you.

It’s not like I or you create content on Youtube and Youtube has to get money from an advertiser, then share some of it with us.

That’s not how we get paid on Steemit. Who actually pays us is the blockchain itself. It is similar to the way Bitcoin mining works, where the miners hash and the payment is in the protocol itself.

You can think of the proof of work and Steemit is judged by the other people who hold Steem, specifically who holds Steem power. The upvoting is weighted towards people who have more Steem power.

For example, there’s a site on Steem Dollars where you can type in a username. It will tell you how much that users’ upvote is worth.

Now, you’re asking me how this revolution is. On Steemit, you noticed that most of the posts or content that gets a lot of money is promoting Steemit in some way.

I mean, it’s usually saying how it is so great. Even if it’s not about cryptocurrency or Steemit, it could be about like there was one post where this guy was writing about his motorcycle racing or something. He was wearing Steemit t-shirt to promote it at his races. There also was a cooking article about how to make a cake or something and there is Steemit sign on the cake.

Because most of the Steem power is being held by the developers of Steemit, they’re uploading content that promotes Steemit, right?

What I was saying is that right now there are 40,000 users on the platform, which is growing between 1 to 3000 per day. If it hits critical mass, we could see this happen.

Major companies like Nike, Coke, Pepsi or a car company normally spend a lot of money on advertising. Let’s say the platform gets the 10 million users. The only way to position your content on the platform is to own Steem power. That is the reason why advertisers might by Steem in order to get influence on the platform. It is also one of the reasons that will give the currency value because any currency needs to be bought and sold for real value.

Therefore, all the content producers are getting Steem for their content. Currently, the only people buying Steem right now are speculators, right? Investors and speculators like us who believe in the platform. That’s why we’re buying it.

In case this platform gets traction, you could potentially see big advertisers like Coke or Pepsi say: “Hey, we want our content to be near the top of the curation list.”

When you log in to Steemit.com, you will see all the most popular posts are at the top. The only way you can get your content at the top is by owning Steem power and then you upvote yourself or you upvote other people’s content that promotes your product.

It’s kind of like the Transformers movies last time. That’s product placement, Obviously, GM paid whoever create content that has their cars in it.

If you want to earn Steem as a content provider, you’re going to write about things that Steem power holders will upvote. At the moment, it is just the Steem developers gaining this traction. I see that it could be other advertisers as well.

Tai Zen: Okay. I see it the same way too. Let’s say that we create a video that Coca Cola-like. They can pay us directly. Hold on real quick.

Leon Fu: They can’t pay us directly. Let’s say Coca Cola owns a lot of Steem power. When they upvote us, let’s say we make a content promoting them. They can just upvote that content and the blockchain would pay us. They would just issue more Steem to us. They don’t deduct Steem from them and give it to us.

Kind of like the Federal Reserve. The more money you have, the more money you can issue to other people.

Tai Zen: Yeah. The thing is the advertisers like Coca Cola can just pay the content creators directly.

Leon Fu: That is one way to do it. Another way is they can just buy a lot of Steem power. When they upvote content, it’s worth a lot of money.

For example, Steem developers like Ned and Dan are two individuals that probably have the most Steem. When they upvote content, that upvote worth like 200, 300, 400 or 500 USD. The blockchain will issue that much Steem to anything they upvote. Do you see what I’m saying?

Tai Zen: Yeah. Yeah.

Leon Fu: They don’t have to pay the developers. The blockchain will pay the developers if they buy the Steem and convert that to Steem power. They still have the same amount of Steem that they did before upvoting, but new Steemit is simply produced.

Tai Zen: Yeah. That’s what I think because now you don’t need a middleman. The whole idea behind cryptocurrencies, Bitcoin and all this is to eliminate the middleman financial world. Advertising is like a huge part of finances. If we can eliminate the middleman from that, it also reduces the advertising costs for businesses.

Leon Fu: Let’s say Coca-cola had a lot of Steemit power. When they upvote something that money isn’t deducted from them. New money is created to pay content providers. I mean in a sense that the entire community pays for that through inflation.

For example, when the Federal Reserve prints the money to lend it to the US government, they’re not taking money away from anybody. They’re creating new money that didn’t exist before that. Of course, this does devalue everybody else’s money collectively.

Tai Zen: Yeah. But I don’t see that as an issue at all.

Leon Fu: Not as long as the system is growing. Not as long as the content creates value that draws in more people.

If the blockchain issues new money to that, those content providers bring in more capital into the system. In that case, it’s not an issue.

Let’s say we create content that draws in like 1,000,000 new viewers. Maybe 20,000 new Steem USD were issued for the host of that content. It means that the content draws in more money into the system. It’s actually creating value. Does that make sense?

Tai Zen: Yeah, yeah. I totally see it. That’s not an issue. The content right now, I don’t know how to word this, b is paid on a per click

Leon Fu: Per upvote

Tai Zen: No. What I’m talking about is advertising is paid on a per click.

Leon Fu: Yeah. Price per click PPC

Tai Zen: Yeah. That’s how it’s measured. And what happens is when ….

Leon Fu: Yeah. Let’s Tai continue here.

Tai Zen: Yeah. My Indian driver, man. I mean he sees me broadcasting the critical information to the cryptocurrency community and he’s over there watching pokemon go or something.

Leon Fu: I have to run Tai. Let finish this up and…

Tai Zen: What I was saying is this the content is very unique in terms of how it’s being paid on Steemit. The reason is before that, the big companies will pay the content providers through the form of advertising, and there’s a middle man taking a piece of that money.

The thing is it’s not equal. It doesn’t allow the small guy just starting to get paid for his or her content.

Let’s just say that we have the most popular channel right now in cryptocurrency investing. If somebody googles it, Youtube is going to send the traffic to our channel first sense, because we’ve been around longer and we’re a trusted source for cryptocurrency investing information.

How about the case of someone new? Let’s just take an example of Shak Daniel, who’s been a guest on our channel several times.

He’s starting his channel, Chase That Coin 3 years after we started our channel. What happens is the advertisers are not going to give him a chance. His content might be good or relevant, but it’s not something that is going to be looked at by the advertisers because they’re going to pour all their advertising money into our channel.

The thing that I’d like to talk about is whenever somebody new comes out like Shaka Daniel or Alex from ICO countdown,…

We’ll be having him on here shortly once we find the right time. The guy that runs the website ICOcountdown.com is a guy named Alex. He’s in the Netherlands or somewhere in Europe. We’ll find out when everyone comes on the show.

Back to what I’m saying, because they’re just new, they don’t have a lot of subscribers yet. However, when they do it on Steemit, people can upvote it whenever they see it. That vote has a lot of value, right?   If there are enough people upvote it, it brings attention to his channel and that gives the little guy a chance.

Leon Fu: Yes..

Tai Zen: If you are wondering why we bring these different guests on different cryptocurrency on to this channel, that’s the whole reason. We believe in the little guys. They should get a chance just like the big guys do.

Leon Fu: Anyway, as an investor, whether you should buy Steem or not, I think just keep an eye on the number of registered users as they increase. That number probably went up 1000% or something like that a few months ago.

I think the next 10X move will happen if they reached critical mass and get enough users like big ad agencies coming on board.

Tai Zen: Just real quick. In case someone does not know what the word critical mass, they might understand what critical and the word mass individually. Could you just clarify that to the audience?

Leon Fu: When the growth goes parabolic if it’s not already parabolic.

When I say critical mass, it means the network becomes big enough where people join. For example, Facebook hit a critical mass in 2008. When it hit critical mass, people simply join because their friends and everyone know is joining.

That is also the reason why I joined Facebook. All the people like my friends were on facebook and that’s how they wanted to communicate. Therefore, critical mass means people join it because there was somebody they know or somebody they care about is on it.

Obviously, 40,000 users are not critical mass yet. There is some tipping point where it will become that.

Tai Zen: Basically, the critical mass is just the point of no return.

Leon Fu: Yeah. It’s a point where the platform is going viral.

Tai Zen: Okay. That’s what I understand too.

Here’s the thing that I want to share with everyone. I’m looking at their stats and they’re gaining about 40,000 users.

There’s a guy named Kevin O’leary, who’s a very famous businessman, entrepreneur, and investor on shark tank. They interviewed him one time and they asked him what your thoughts are on Bitcoin? He says he doesn’t know much about it, but anything that has 1 billion USD valuation, then it’s not a joke.

We’ll talk about this in in a separate video cause we’ve got a couple of people to believe that it’s a Ponzi scheme.

Back to Kevin O’Leary, he says that when it gets to 1 billion USD, it needs to be taken seriously. Whenever it gets to the point where the market reaches like several hundreds of thousands of users, it is going to get attention.

For example, Youtube does not pay attention to your channel until you get past 300 subscribers or up to like 1000 subscribers. They have a certain level for you and when you get there, there’s another level like between 3000 to 5,000 or something like that.

From a thousand subscribers and up, Youtube starts to direct traffic to your channel and all kinds of stuff.

When you get past, let’s say, 100,000 users, they’ll give you a rep and stuff too to work with them. When you start getting past, let’s say, 10,000 subscribers and stuff, they contact you to help you build your channel up.

That’s the same way with Steemit. Regardless of what their technology is, the fact that they were able to get 40,000 subscribers, that’s in itself right there is going to make a difference. Then, people will start to take notice regardless if they want to notice it or not.

Leon Fu: Yeah. Right now, at the current state of things, what gives Steem its value are speculators. That’s why I think people are calling it a Ponzi scheme. They’re calling it a scam because you’re getting paid Steem dollar.

However, what does this Steem dollar worth? Well, it’s worth $2 and whatever as now. Then, why is it worth that? Well, it’s just because speculators are betting that this thing goes viral.

At the point where they get enough subscribers like a real advertiser or any kind of legitimate company that wants to advertise on the platform, you can’t really say it’s a Ponzi scheme or it’s a fraud. The reason is they are be buying Steem because they want to have a presence on the platform

Tai Zen: Yeah exactly.

Leon Fu: Because it drives traffic to their products. Because they’re making sales by advertising on Steemit.

We’re not there yet. Now the only value that Steem has is the speculation that scenario will become reality in the future. I think that’s the takeaway.

Tai Zen: Yeah. The problem with a lot of cryptocurrencies is that they don’t have a reason for commercial businesses to use it. If it does not get commercial adoption from the business community or commercial community, it’s not going to live very long.

Leon Fu: I think in the finance world we have something called the buy side and the sell side. For any cryptocurrency, it needs to have both. It needs to have people who want to sell the currency and you need to have some group of the party that wants to buy.

Let’s take Bitcoin as an example.

In the early days, the buy side is people who wanted to buy drugs. That’s a part that generated the men. Because of that, we had companies like BitPay and Coinbase that did merchant processing for companies that wanted to take Bitcoin as payment when they needed to sell. That’s sell pressure.

The real key of having any crypto coins survive is developing the usage-based both on the buy side and the sell side. You really need to have both in order for it to go viral.

What I can see on Steemit is you obviously have content producers who are earning Steem and they need to sell. They’re like miners in Bitcoin. They have costs. Their costs were they produce content. Therefore, they are getting issued Steem from their potential customers, which are only investors and speculators believing in this platform on the buy side right now.

However, hopefully, in the future, we’ll have real advertisers that will generate people. Advertisers who want to buy Steem because they want to have a presence on the platform so that content providers sell Steem to pay for their costs.

Tai Zen: Okay. Let’s see if there’s any questions from the audience here and then we’ll wrap it up.

There’s a bunch of Ponzi scheme questions. I’m not a waste of time answering that simply because if you’re new to cryptocurrency, you should already know that every cryptocurrency is called a Ponzi scheme when it comes out. Even Bitcoin was called a Ponzi scheme.

If you have any questions on how Steemit will change online advertising, let us know then. Here’s a valid question: “Isn’t Scenario much better than Steemit?”

I’ll give the answer to that and then you can chime in on that, Leon.

In cryptocurrency, there are different buckets. For example, in the smart contract bucket, you got Ethereum, Expanse and different cryptocurrencies that focused on building smart contracts.

Besides, you also got this bucket of cryptocurrencies where their technology is built on social media. For example, the Akasha project that’s going to be built on the Ethereum blockchain is categorized as social media bucket. The scenario is also in that social media bucket.

For example, you have the decentralized Dropbox. In that one, you have MaidSafe and Siacoin. These are all in the distributed or the decentralized storage bucket.

Steemit is in the social media bucket with Scenario, Akarsha and all of those. The advantage that Steemit has is that it’s the first one to have working software.

We don’t know which one is going to make it. We don’t know which one is going to fail. If you have been following us for years now, you should know that the way that we invest in cryptocurrencies is we take the venture capitalists approach like in silicon valley. We put a little bit in each one and hope that they pop in and get really big.

Nobody knows which one’s going to succeed. If Leon and I knew that this cryptocurrency was going to go to the moon for sure, we would sell everything we have. We would cash out our house and we put all our money into it, but we don’t. We just look at the technology and the main thing, especially who are going to use it.

Leon Fu: I’ll repeat what you just said, Tai.

I think that Steemit is functioning right now. You can actually use it. They have 40,000 users. You can do post, upvote and get paid for your content. That’s happening right now. I don’t see anything with Scenario or Akasha. I think those are still in the works,

Tai Zen: Keep in mind that in the business world, even when you have a poor product, but if you’re the first one to success, you can still get an advantage. The reason is you were the only one in the market at that moment.

To conclude, we don’t know if Scenario is better. We just know that we put a little bit into Steemit simply because it’s the first one out that’s working.

Leon Fu: That’s it. Maybe steemit is the Myspace and something else and Scenario or Akasha becomes Facebook. We don’t know. However, we do know that it is working today. It has traction and gains users. The platform is so far working as it’s intended. That’s what we know.

Tai Zen: Here’s another valid question by Roger Moore. He says: “What about the premise?”

Hey guys, if you’re new to cryptocurrency, just know every coin is the premiere.

After the majority of the new coins coming out, they’re all premise. The first one to do that was NXT back in the days.

It’s a waste of money to create these coins using proof of work. We know that that’s not going to be a long-term valid strategy. At least, most of the consensus is because it centralizes the security of the blockchain, which means one organization or one group of people is doing all the security work.

Leon Fu: Steemit is centralized at this point. It is totally controlled by the developers and it will be that way for the next few years probably.

Tai Zen: Yeah. I’m fine with that. I think I just saw on their channel that they said Steemit is now open source.

Leon Fu: Yeah it is. They just published their source on GitHub. Technically, if you don’t like the way these guys are doing it, you can fork it. Just like Ethereum Fork. You can go to your own Steemit. I mean the codes out there for anyone to do that.

Tai Zen: Next question: “What makes you so confident that people will want to be on Steemit platform?”

Because it saves them money on advertising. They spend the advertising agency billions of dollars every year on advertising.

Leon Fu: Advertising is the number one cost.

Let’s take Coca Cola as an example. The price you pay for one coke is around 1 USD. Their costs are split into pennies or even fractions of pennies. What you’re paying for is the advertising. I mean the majority of their costs is marketing and advertising.

Tai Zen: Why don’t we share about what you’re currently doing for Dell computers right now. I think you told me that they put $65 million on the app that you’re working on.

Leon Fu: Well, I don’t know the exact number.

Tai Zen: But I remember you telling me one time that the bulk of that was spent on advertising.

Leon Fu: I’m just a software engineer. I don’t know exactly the split for my particular projects. I’m just a senior developer on that project, but Dell as a whole is a sales and marketing company. Even though Dell started out with Michael Dell building computers in his bathtub at UT, they don’t build computers at all anymore.

This is not just dell. This is everybody. This is Apple. This is an HP. None of those guys make computers. There’s maybe 3 or 4 companies in China that actually manufacture all the computers in the world are lists of what label is on it.

All these computer companies are sales, marketing, and engineering companies. They are not manufacturing companies. Therefore, much of their costs are for research, development, and marketing. They don’t actually make anything. Are you there, Tai?

I can’t hear you.

I’m going to stop my video here because I can’t hear you at all times

Tai Zen: Can you hear me? Can you put it in the chat box and let me know?

Leon Fu: Yeah.

Tai Zen: Okay. Let me cut off my video then. Okay.

Leon Fu: Yeah. Tai keeps your video off.

Tai Zen: We have a guy asks if we are in that’s the thing.

If you hear me and Leon talk about it, just automatically assumed that we are invested in that coin. Don’t even bother asking this because that’s just a waste of time. Whenever you hear us talk about it, it means we have done the research and shared it with you. That’s our disclaimer right there. Okay.

This is a good question right here: “How come a post with 325 upvote and 78 comments can be worth $4,400?”

The way that it works is whoever is upvoting you, it depends upon how much Steem power they have.

Steem power is like your credibility or your credit rating. The more Steem power that you have, the more that your upvote counts. That’s the reason why we believe that this is going to change advertising because of companies like Coca Cola.

If they want to advertise their product, they can go in there and buy a lot of Steem tokens and converted to Steem power on their account. Then, they start upvoting people that create quality content about their Coca Cola products.

Now that doesn’t mean we’re just using Coca Cola as an example. I hate the Coca Cola.

Leon Fu: It’s impossible to avoid drinking Coca Cola products.

Tai Zen: Yeah. They have so many products, not just Coca Cola by itself, but some are going to be consuming one of their product. I just don’t consume Coca Cola

Leon Fu: I don’t drink coffee, but I can guarantee you and nearly all of us drink a Coca Cola product

Tai zen: Okay. Global guy. I thought he was asking somebody else, but he’s actually asking me and you this question: “How long did it take Reddit to gain some legitimacy? Can Steemit follow the same path?”

Leon Fu: I haven’t done that research. I am not a user. I mean I do go to read it but I don’t know the history behind Reddit. How about you, Tai?

Tai Zen: No, I don’t know what. I actually never even heard about or used Reddit until I got into the cryptocurrency because it seems like it was the only place where you can find information about bitcoin.

Leon Fu: That’s right. That’s right.

Tai Zen: Matt Ezell says:” Doesn’t the fact that a blog post with a 10,000 evaluation says a lot about the current price of Steem? How do you justify the value of blog posts being worth so much?”

Leon Fu: The value of a blog post is determined by an algorithm. It’s the algorithm. It’s not any one person. It’s simply a formula of the number of upvotes you get and the amount of Steem power each of those upvotes has. That is it. And where does this money come from? It’s created by the blockchain. That’s it.

For example, in Bitcoin, every block is worth 12,5 Bitcoins right now. That’s issued to the miner who found the proof of work.

It’s purely algorithmic in Steemit. I haven’t gone to read the source code so I can’t tell you the formula. However, there is a formula computing a value for each post. It’s not simply by the number of upvotes, but also by the number of Steem power that each of those upvotes has. If you upvote many things, the value of each of your upvote actually gets diluted.

Therefore, this is a very complex formula that I don’t exactly know, but that’s the answer to your question.

Tai Zen: Yeah. I know that every upvote does not count the same. The average upvote that I’ve seen whenever we upvote someone else without cryptocurrency market account is anywhere from as low as 5 cents all the way up to 8 USD.

Leon Fu: Yeah. Even more than that. It also depends on how much that post is already worth like if you upvote something that’s worth 10,000 USD or you’re the first one to get to upvote that post.

Tai Zen: Yeah. The earlier has something to do with that, but that’s the case.

Crypto Giraffe asks:” What do you think will happen to BitShares in the future if Steem takes off?”

Leon Fu: Unfortunately, we missed Steem because we didn’t follow the BitShares community. I think if we were following Ned, Dan, and those guys, we would have caught this earlier.

I mean this was one of the things on my list to research, but unfortunately, I didn’t get around to it before it’s just exploded. I will say that I haven’t done enough research on BitShares.

I know that the way they peg a Steem USD to BitUSD. It’s a similar way. It’s collateralized by a bunch of Steem as the way BitShares collateralizes BitUSD with BTS.

That’s where I know that I don’t think, somebody, correct me if I’m wrong, Steemit is built on BitShares, but it’s more analogous. They’re using a lot of the technology that BitShares invented.

Tai Zen: Here’s another good question from Jurgis: “If we’re getting paid my Steemit?

The answer is of course.

Leon Fu: If we produce content on Steemit, we get Steem.

Tai Zen: Everybody posting on Steemit will get paid. We’re not the only ones. Every user on Steemit gets paid.

Leon Fu: He might be asking if we have any special relationship with Steemit?

Tai Zen: No. The answer is no.

Leon Fu: What we’re getting paid by Steemit is something that everybody else can get. If you produce content on, you’ll also get paid to.

Tai Zen: Yeah. I posted our account there so everybody can see it.

It’s not hidden or something. Everybody can see what we’re getting paid for.

There is a good question. Matt asks: “Do you honestly believe that a blog post can have a true value of $1,000?”

The answer is absolute yes. It depends upon the quality of the content. There are some blog posts out there and I’ll give you an example.

When I posted the video on myetherwallet.com about how to convert your Etherium tokens, then cash it out and convert it to Bitcoin by using the website myetherwallet.com.

I will share with you this. It was so technical that I didn’t know how to send the Etherium to Poloniex to convert them to Bitcoin. Therefore, when I found out about that website, myetherwallet.com, which is one of the best Etherium wallets in my opinion. It is the most user-friendly.

Matter of fact, the Etherium foundation should get those people to create their wallet. It’s easy for people to use.

It was so difficult for my friends to do it, so I took the time and I learned how to use it. After that, I create a video tutorial on how to use the myetherwallet.com to transfer, move your Bitcoins around. Then, I got a ton of viewers and all of my friends were happy that I created a video tutorial to show him how to transfer their Ether during the ICO. That video alone got hundreds of views.

However, I had a bunch of close friends from around the country that would have gladly paid me 100 USD for that tutorial.

Therefore, if you had that video tutorial to show me how to transfer my Ether from my ICO to the exchange, I can cash out on it. I would have gladly paid you 100 USD.

Leon Fu: I have 100 people are willing to pay you 100 USD and that’s 10,000 USD.

Tai Zen: Yeah. Remember this. On the Internet, content is king. If you have quality content, people are going to pay you for it.

Leon Fu: Let’s look at how much advertisers pay Facebook and Google. These middlemen basically don’t produce any content. It’s their user base that produces content. However, they still get billions of dollars.

Look at how much Youtube, Facebook or Instagram is getting paid by advertisers for the content that their users are producing.

If you ask whether your blog posts can be worth 10,000 USD, for sure in some cases. The reason is the advertisers are willing to put their ad next to your content because people want to read your content.

Tai Zen: Yeah. This is another good question. It’s not really a question, but it’s a statement, but it could be a question.

If you are watching this channel, you should always assume that we’re biased in the cryptocurrency that we’re invested in them. That would be a natural assumption.

Leon Fu: Yeah. We have an interest in this, but we’re giving you the research that we’ve done. Obviously, we are active investors. It means we have a view and we put money on our view. We actually put money behind what we believe in.

Tai Zen: Yeah. So far, I think we have a pretty good track record, so I’m going to stick with it.

Leon Fu: We also had our misses and lost too.

Tai Zen: Obviously, the DAO was a big miss for us because there was a lot of information we didn’t know at the time.

I will make a video explaining the mistakes that we made with the DAO hub investment and what we learned from it so that we don’t make it again in the future. That’s part of the investment

Leon Fu: This is part of investing. We’re not always right. Noone is. Even Warren Buffet. However, you don’t have to be right all the time to be really successful

Tai Zen: One more question.

Matt SO asks:” Are there other blog posts out there in the world that make 10,000 USD?”

Yes. If you go to any of the popular youtube channels, like The Young Turks or any of that, each of their videos is probably worth about 5- 10,000 USD. Especially, if a youtube channel has a million subscribers, you can pretty much bet that every single video are worth probably in the thousands of dollars

Leon Fu: All the music videos from Brittany Spears or any popular pop star that’s getting millions of views on there are million dollars. The three-minute song is worth millions of dollars.

Tai Zen: Yeah. Especially, Gangnam style, the first video to crack a billion views, that video is worth probably in the millions of dollars

Leon Fu: I know it sounds hard to believe, but any pop star, your favorite music artists who make a 3-minute song can have tens-hundreds of millions of dollars. Maybe they took a month to write that song. I don’t know. I’m not a musician, but that the case if they get a hit song.

Tai Zen: This is a valid question here. This is a really important question. It has nothing to do with advertising here, but I will have to ask because it deals with me and you directly.

MSP says: “Since there are only two oracles of cryptocurrency, there are so many coins. Why don’t you form a team to do research?”.

You have no idea how Leon and I have been discussing this every freaking day.

We only have enough time to research about half a dozen cryptocurrencies. That’s it.

Sometimes you guys ask us why we don’t talk about this cryptocurrency or that cryptocurrency. The reason is there’s only two of us. I’m also a full-time forex trader and futures trader, so there’s not a lot of time…

Leon Fu: I have a full-time job as a software developer, so this is just like a side job. Therefore, we can only follow no more than half a dozen projects closely. That’s all the time we have to do research. I’m sure that there are more projects.

I mean if we had more time, we would have followed Steemit when it was under 1 USD right or 1 cent. However, we missed it because we didn’t have the time to look at. There’s a bunch of projects that are on that list that I’d like to do more research on, but I just don’t have the time to follow up.

Tai Zen: Yeah. I’m going to do more research on the Scenario. I want to do more research on Akasham but you know…

Jurgis also asks why we don’t talk about the pros and cons of Steemit.

We do. We will have upcoming videos on the kinds of Steemit. If you have been following us, we always talk about the pros and cons of each coin that we invest in. We not only talk about the good things. We also talk about the bad things.

However, in this specific video, we only want to focus on advertising and how Steemit can change advertising. All right. That’s the limit that we have.

Leon Fu: All right. I’ll catch you later, Tai. Good talking to you.

Tai Zen: Hey on Leon, this is actually a valid question and it will be the last question cause this is something that you and I have discussed.

MSP asks “Would you be willing to provide a list in percentage of investments in all coins that we invest. No need to know how the amount. Just the coins and the percentage.”

We have been discussing it for the last couple of years. This MSP guy must be a psychic or something because he keeps asking the same questions that we have been discussing.

Leon Fu: I think we can create like a subscription newsletter, Tai. That’s a business idea that I think……

Tai Zen: Yeah. We are trying to figure out some of the legal issues because we live in the US and there are some legal issues.

We are going to set it up as a subscription a or membership because we don’t want people to troll that type of information, which can hurt people.

Therefore, we are working on that for the last couple of years. It’s just that we haven’t figured out some of the technical details and some of the legal details. The reason is when we put information out about something, there has to be a way for people to be able to buy those coins too in a timely manner. So.

Leon Fu: All right Tai. I really have to get going.

Tai Zen: Okay. Will you document how you and your girlfriends doing that Steemit videos so maybe the audience can learn how it’s done.

Leon Fu: We are going to do that.

Tai Zen: You can cut off right now, Leon. Let me sign off over here.

All right. Thanks for watching this video. If you guys like it, give us a thumbs up. If you don’t like it, let us know.

Crypto Giraffe said:” Hey Tai and Leon, why don’t you guys create your own Cryptocurrency?”

We don’t have the technical skills to do so and that’s why we haven’t done it yet.

MSP says:” I am willing to join the team”. Just hit me up on twitter and we’ll discuss it.

All right. Thanks, guys. Just click a thumbs up if you guys like it. Gives a thumbs down if you guys don’t like it. It will not hurt our feelings. Just lets us know what videos we should make. So we’ll catch you guys in a future video.

 

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