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STEEM Cryptocurrency – The Ultimate Guide
Our Steem cryptocurrency guide will tell you everything you need to know about this project. We’ll explain what Steem is, what it does and give our opinion on the project. As usual, we do urge caution before making any cryptocurrency investments and encourage you to do your own research.
- 1 What Is Steem?
- 2 Who Can Benefit From Steem & Who Benefits From Traditional Social Media Platforms?
- 3 The Technology Powering Steem
- 4 What Is Steemit?
- 5 Earning Money On Steemit: How Does It Work?
- 6 The 3 Ways Of Earning Money On Steemit
- 7 The Team
- 8 The Future Of Steem & Steemit
- 9 The Steem ICO
- 10 Should I Invest In Steem?
- 11 Looking to buy some STEEM?
- 12 Conclusion
- 13 Resources
What Is Steem?
Steem is a blockchain based social media platform that allows anyone to earn cryptocurrency rewards for interacting with posts, creating content and curating it. The idea is that this incentive scheme will lead to better content and allows users to benefit from the value they add to the platform.
Consider this: Existing social platforms like Reddit and Facebook simply host user generated content and have created billions of dollars in value for shareholders. Shouldn’t the very people posting great content and adding the value in the first place be rewarded?
Steem’s goal is to return much of the value generated by contributors back to them, using cryptocurrency payments. Through this approach, Steem hope to usher in a new world of fairer social media, where users are actually rewarded for their contributions, instead of the value solely going to shareholders, popular influencers and Fat Cats.
Who Can Benefit From Steem & Who Benefits From Traditional Social Media Platforms?
Steem has been designed to enable regular people to grab a slice of the social media pie. It seems natural that if you spend a lot of time in creating a viral post, that you should be rewarded for it.
This enables a huge group of people to earn money from their social media interactions. These include:
- Casual users sharing their opinions.
- Content creators.
- Business owners.
- Your regular social media users.
With traditional social media, the only people benefitting monetarily are:
- Executives at social media companies.
- Business owners using social media platforms to acquire customers.
- Popular social influencers.
The idea of Steem is to share the wealth created by social media, amongst the many and not the few. We must remember that businesses and shareholders can only make astronomical amounts of money from social media because of the contributions from regular people. This makes Steem revolutionary when we compare it to traditional social media platforms like Facebook.
The Technology Powering Steem
The Steem network is built on Graphene technology and has already been shown as capable of processing 1,000 transactions per second. This is without any form or optimisation and the Steem team claim that 10,000 transaction per second is easily possible. This matters because for social media platforms to be widely adopted, they must be able to cope with the volume of users and their interactions with the platform.
Consider that in 2015 that Reddit had 8.7 million users, who generated 23 comments per second between them and there were an average of 220 votes per second. This means that if Reddit was built on a blockchain, it would need to process at least 250 transactions per second to run seamlessly. Steem can already process at least four times more transactions, meaning it can already accommodate significant growth on their social media platform.
What Is Steemit?
Steemit is a social network and uses Steem’s technology to reward users for posting, interacting and curating Steemit based content. Every year, “75% of the rewards will be for users submitting, voting on and discussing content”. The idea is that this system will incentivise the production of the best content and discussions on the internet. With this in mind, it is perhaps not surprising that the majority of Steem rewards will go to the most popular content.
It should be noted that although Seemit is a blockchain project, discussions are by no means limited to cryptocurrency topics. Some of the most popular topics and discussions are in travel and sports.
You can see that after only an hour, sweetssj has earnt $392.21 from her post and that users posting comments have been rewarded too.
Earning Money On Steemit: How Does It Work?
The first thing you need to know is that Steem has three types of tokens. Steem and Steem Dollars are tradable, whereas Steem Power is not.
- Steem: Is the unit of account on the Steem blockchain. All other tokens derive their value relative to Steem. Steem is a currency and can be transferred to other users or traded on a cryptocurrency exchange such as Binance.
- Steem Power (SP): Think of these tokens as a commitment to the Steem platform. Users are able to trade Steem tokens for SP and their contribution is locked up for at least 13 weeks . In return, the user will enjoy more power and a higher distribution of rewards when they vote on content. SP holders are also paid yearly interest and 15% of the yearly token inflation is paid directly to SP holders. This interest payment is directly proportional to the amount of Steam Power they hold, relative to the total amount of SP held by all other users.
Steem users can transfer Steem to SP and “power up” or exchange SP for Steem (after the 13 week vesting period) and “power down”. ‘Power downs’ return Steem tokens to users over 13 weeks and over 13 equal weekly payments. This starts from the moment that the “power down’ is activated.
- Steem Dollars (SBD): Is a readily tradable cryptocurrency and can be freely bought and sold on cryptocurrency exchanges.
As a user, 50% of your rewards will be paid in Steem Dollars and the other 50% in Steem Power.
The 3 Ways Of Earning Money On Steemit
Currently there are three ways where you can earn cryptocurrency on Steemit today:
- Posting: By sharing your thoughts you can earn upvotes from the community (like on Reddit). The number of upvotes you get determines your share of the Steem reward pool.
- Buying Steem or Steem Dollar Tokens: You can buy these tokens through a cryptocurrency exchange and earn interest by converting these to Steem Power.
- Voting and Content Curation: If you vote on a post and it becomes popular, you will get a reward for curating the content. The reward received will depend on the amount of Steem Power you have.
Steemit Key Facts
- The largest blockchain based social media platform in the world.
- Join a community of over 950,000 people and counting.
- Earn cryptocurrency for your social contributions on the Steemit platform.
Want to be fairly rewarded for your Social Media contributions & start earning cryptocurrency? If so, join the Steemit revolution today!
Investors and users alike need to see a project with an awesome vision and a team they think is capable of executing it. Steemit was Co-founded by Ned Scott and Dan Larimer in January 2016 and the rest of the team has a wealth of experience. For now, we will just focus on the Steemit top brass:
Co-Founder & CEO – Ned Scott: Ned graduated from Bates College in 2012 and then went on to take a position as an Operations and Financial analyst at the Gellert Global Group. This company focused on food imports into North America and has a 100 year track record.
Ned began learning about Bitcoin in 2013 and met Dan Larimer. Ned found that he was spending the majority of his time on blockchain and came up with the concept of Steemit with Larimer. After seeing this opportunity and having faith that he and CTO wizard Dan Larimer could execute, Steemit was born.
Co-Founder & CTO – Dan Larimer: Before Steemit, Dan held a wide range of technical positions. These included CEO of Open Tech, software engineer at Raytheon, TORC Robotics and Phoenix Integration. Dan also went on to found Bitshares and Invictus Innocations, before teaming up with Ned Scott on the Steemit project.
With Dan we have a clear example of a entrepreneurial technical wizard who has a long track record of winning. It should be noted that Dan left Steemit in March 2017 to start the EOS project.
Although Larimer is no longer with Steemit, we are confident that the technical work he has done there will generate value for many years to come.
The Future Of Steem & Steemit
Steemit has been graining traction over the last year or so and has a reported 950,000 users already. We have to remember that the platform is still in Beta and you don’t just build the next Reddit or Facebook overnight.
TotalCrypto thinks that more and more users will start seeing the value of a social media platform that actually rewards their users. The reality is that traditional social platforms, such as Facebook, do not give back to the users that have made it a $462 billion dollar business and only have rewarded shareholders and company employees. Steemit is a fairer model and has already demonstrated that it can handle Reddit levels of adoption easily.
One thing is for sure, social media is massive business and some of the world’s most valuable companies are in social media. If Steem and Steemit can gain only a fraction of social media market share, we have no doubt that Steem investors could do very well indeed.
The Steem ICO
Steem didn’t actually have an ICO. Instead, most Steem was premined before Steemit was Beta launched and tokens were distributed as a reward to contributors or sold on cryptocurrency exchanges to fund the project.
This strategy can be seen as much more cost effective than ICOs. The reason is that most ICOs dedicate 15 to 20% of the funds raised to marketing. Steem, on the other hand, felt they had a cool project that would market itself.
Should I Invest In Steem?
It’s entirely up to you whether you invest in the project or not. We can give our opinions on the project though:
- Unlike other cryptocurrency projects, Steemit already has a working product with over 950,000 registered users.
- Successful social media companies are some of the most valuable on the planet. Think of Facebook ($462 billion valuation) and Twitter ($21.45 billion valuation). This means that if Steem can get a a reasonable slice of the social media pie, then there is no doubt it will be valuable.
- Fundamentally, it makes sense to reward contributors that help grow a social media platform. TotalCrypto predicts that the monetary incentive will see large numbers of people using Steemit over other social media platforms.
- Incentivised social media should lead to better content and a more enjoyable social media experience for users. This will be achieved through monetary incentives to make better content and improved curation.
- If Steemit is successful, it can potentially introduce 100’s of millions of people to cryptocurrency.
- Joe Lee ( co-founder of trading platform Magner) argues: “Whether Steem succeeds as a digital currency will be more a reflection of Steemit’s success as a platform as opposed to the economics of the coin itself. This is a good example of a digital currency whose value will be closely affiliated to its utilitarian value as a social networking and sharing platform.”
- Social platforms such as Facebook, Reddit and Twitter already have significant market dominance. Facebook has 2.2 billion monthly active users. This illustrates how low Steemit’s adoption levels actually are Vs key players in the current social media market.
- If Steemit is not widely adopted as a social platform and remains niche, then the Steem tokens are not going to see impressive long term price growth.
Looking to buy some STEEM?
There are two main ways of buying STEEM. Fortunately, we have put together together an awesome guide to show you how.
The TotalCrypto Team love the concept of Steem and Steemit. Traditional social media platforms, like Facebook and Twitter, only seem to benefit social influencers, shareholders and executives. The success of these platforms actually depend on the interactions of regular users and it makes sense to distribute profits to the many and not just to the few.
We think that social media users will wake up to the fact they are providing a valuable service to social media companies and conclude that they should rewarded for their efforts. We expect traditional social media companies to resist calls to properly reward their users. After all, it’s their profits they would be sacrificing and these companies are answerable to shareholders whose motivations are purely driven by profit. In such an environment, Steemit is set to flourish and social media users are set to be more fairly rewarded for the service they provide.
Steemit really does have the potential to completely disrupt the social media space for the better. Only time will tell if this social experiment will be a success.
Below we’ve listed some key resources relevant to Steem Coin.
? Best Free Wallets
We recommend you use the official Steemit wallet. The wallet is automatically generated when you create a Steemit account.
? Best Apps To Track Your Steem Investment
How does the STEEM incentivized, blockchain-based, social platform exactly work? The official STEEM white paper reveals all.