I recorded the following on audio (in Dutch), so transcribed and translated here. My notes are between [brackets]. As I'm still wrapping my head around how steemit works, I'd be happy if you point out any inconsistencies.
Me: I joined this social network called Steemit that rewards people for posting content.
Dad: Huh? Who is paying for this?
Me: Actually, you are paid for the creation of value, in a currency that is used to keep the network going. It isn't in euro's or dollars or something, but the currency does have real value.
Dad: So how exactly is spending time on a social network valuable?
Me: Have you noticed facebook?
Dad: Yes, but they can't pay everyone real money for posting, otherwise they would be broke sooner rather than later. So how is this possible?
Me: The value comes from the network itself.
Dad: I don't understand how that is sustainable. It sounds like one of those pyramid-schemes, where you put in a certain amount and get back more, unless you are late at the party and the guys starting it get really rich really quickly.
(My dad two months ago, exhibiting one of his bad habits. :D)
Me: I understand your point, and I must say that in the beginning I was wondering the same as well, but after reading their mission statement [My Dad probably wouldn't understand the concept "White Paper"], I got convinced that it might work. What they do is generate this currency at a steady rate, and the money goes partly to accounts that power the whole network, kind of like an investment. This money is locked up, so that it cannot be withdrawn quickly and helps to continue building the network, so what is happening is that people who are invested in this network are necessarily interested in keeping it an interesting place, which will attract more people writing more interesting stuff.
Dad: But why would that be valuable? Who's going to value this currency?
Me: A lot of people already do, because you can sell this currency on a market and get bitcoin or dollars.
[Omitted a short discussion on what Bitcoin is]
Dad: So who determines what is valuable on this Steemit thing?
Me: On Steemit, everyone on the network can vote for certain posts. And the amount of money in your investment account [SteemPower], which is locked up, determines the weight of your vote. So people who are invested most in the network have the strongest votes and can influence most which posts get the highest rewards. These rewards are then paid out after a certain time, partly in this SteemPower investments and partly in SteemDollars, which you can use to buy Steem or sell on a marketplace.
Dad: But isn't this a little bit unfair? [We live in a social democracy over here...:)]
Me: Maybe it is, but compared to what?
Dad: Good point. So did you make some money of of it?
Me: Well, yes. I got a few big rewards. Half of it has been automatically reinvested into the network and is only accessible over the period of 2 years, in weekly payments. The other half was in SteemDollar. I exchanged some into Steem so I got more SteemPower, and my influence in the network is larger, and some I exchanged for Bitcoin on an exchange, because I wanted to buy some stuff for our big trip [Me, my gf and our daughter will move to Portugal soon].
Dad: So you actually got paid?
Me: Yes. That's what I've been trying to tell you.
Dad: Where do I sign up? I'm completely bored with Facebook, but this sounds interesting.
Me: Steemit.com [I spell it out for him].
Dad: This sounds great, I could do this.
Me: What would you write about?
Dad: I don't know. What did you write about?
Me: I was writing about Amsterdam, about the work I'm doing with [the] OPEN [Foundation, a foundation promoting research into psychedelics], about one of my psychedelics experiences, about what I liked about Steemit and how it made me think and brought new ideas to mind.
Dad: Which posts were most succesful?
Me: The ones in which I shared my enthusiasm for Steemit.
Dad: That sounds kinda circular.
Me: It does, but it is valuable to others, because they are shown the power of steemit to change minds.
Dad: I guess you have a point. So when you write something that is valuable to others, you'll be rewarded more in the long term.
Me: I certainly hope it will be like this.
Dad: I could tell them about my life experience. I've been a car mechanic since before I was legally allowed to drive and know a lot about cars. Do you think there are people who would like to know about that?
Me: Probably yes, but I guess you have to package it into bits that people will understand, so that they learn how to apply the knowledge you have accumulated.
Dad: Like some tips on how to troubleshoot engine problems? Or ways to keep your car running smoothly?
Me: Exactly. And why did you never talk about these things to me? I've been having car problems forever.
Dad: You never offered a reward for it.
Me [chuckling]: I guess that's it.
Dad: This sounds fantastic. But I guess my English isn't good enough to write in. Remember, I only had a few years of school before I dropped out.
Me: I could help you with that.
Dad: Would you? That would be wonderful.
Me: IF you share the rewards [:)]
[Both chuckling]