Thank you for this very well laid out and easy to understand article - much appreciated.
Paying for the nodes by selling Steem has at least two negative effects as you outlined - downward pressure on the Steem price, and the fact that Steem is not infinite. Steemit Inc. must have been hoping for Steem to "moon" to a really high price such that the costs become negligible for them. What a terrible business 'plan'.
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I don't think this was the business plan from the get go, because its not sustainable. I think everyone knows this. Instead, if you commonly look at technology that is newly deployed, they almost all operate with a net loss in the beginning because they are spending money to get it into peoples hands. It just becomes a game of when the business idea takes hold and you can adjust your plan to make it profitable.