Steem is a dedicated blockchain network designed for a specific platform. It is the cryptocurrency on which the social and blogging network “steemit” operates.
Steemit is a social networking site that functions just like any other social media, but the difference lies in the fact that the users get rewarded for positive contribution to the platform.
The reward is given in the form of its platform official digital currency token called Steem, and the ways in which a user can earn the cryptocurrency are by posting, commenting, sharing or curating the network’s contents. The users can use Steem tokens and convert them on other exchanges.
The dedicated Steem rewards that users receive are unique and something that no social networking platform has done. The fact that they have their own dedicated cryptocurrency is a huge advantage in itself.
There are two sub-categories of Steem – Steem Power and Steem Dollar. Both of these are convertible currencies, and users get rewarded depending on the type of contents they share in the Steemit social media platform.
Steem was founded originally by two individuals who were already successful and well established in the cryptocurrency market. The concept of Steem started to take shape on March 24th, 2016 and was first published as a whitepaper.
Ned Scott, the creator of BitShares, and Dan Larimer, the creator of EOS, saw the future of how that whitepaper project could work and founded Steem the same year.
The whitepaper project became a reality and gained huge popularity on its release due to its uniqueness and the convenience (since everybody is familiar with the basic concept of using social media). Although Dan Larimer later left the project in order to pursue another project.
From the time Steem was first released, it saw a huge leap in popularity and market value. They saw a huge inflation rate in the initial stages due to stiff competition from other cryptocurrencies.
However, by December 2016, the inflation rate was minimized to 9.5% per year. This allowed more investors to take note of Steem and further build its momentum. Some months after its inception, Steem gained a market capitalization value of $405 Million, and by early 2018 the popular social media platform had already surpassed the $1 Billion mark.
The Steemit social media platform runs on a blockchain designed specifically for its operation. The application or the platform is like any other social media: you share your content with other fellow steemit users and the system's Proof-of-Brain algorithm, embedded in it by default, checks your content quality.
Similar other social media platforms such as Medium and Reddit offer similar token reward systems. But the fact that Steemit uses its own dedicated digital currency makes it much more convenient than the rest.
The users get rewarded in the form of either Steem Dollars or Steem Power. Out of the two rewards, Steem Dollar is the platform's actual currency and can be used for converting to any other form of cryptocurrency or the normal fiat currency from any available exchanges.
Steem Power is more like a word of appreciation from your boss. It allows the user to have more influence on the Steemit sharing platform and thereby increases your content popularity among the users. Steem Power acts more like a catalyst to allow the users to gain more Steem Dollar Rewards.
The total earnings that a user makes out of their shared content are split equally between the two rewards. That means 50% each for Steem Power and Steem Dollars from the total content earnings.
It is not a difficult task for anyone to get started in the social media platform. They’ve also eliminated the need to invest your fiat currency to purchase Steem tokens and get started since the Steem Dollar is rewarded for sharing your content.
The fact that Steem Dollar is its very own dedicated currency, there is no need to go through all the trouble of converting your cryptocurrencies from one form to another.
Flexible and tradable
Steem Dollars can be used for converting it into any other form of cryptocurrencies. Apart from just converting your Steem rewards for fiat currency, you can also use it to convert to other cryptocurrencies such as Ethereum or Bitcoin, if you are interested in investing in other cryptocurrency platforms.
Most systems runs on an Ethereum powered blockchain platform, but Steem has its own specific platform and digital currency token system as well. This enables its users and platform to function more efficiently. This is primarily due to minimal interference from any third party applications or platforms.
The amount of users that the Steem platform can support is theoretically limitless. In fact, for Steem, the more the number of users, the better the system performs. This also enables users to earn more through sharing, posting or commenting. Thus, Steem makes use of the scalability issue in the most positive way possible.
The process of mining Steem is not possible since it is given primarily as a reward to the users for contributing their respective contents on the social media platform. However, Steem tokens can be purchased via a different online exchange that allows you to convert your fiat currency for Steem Cryptocurrency.
The first step is to create an account by making a transaction. You can do this by buying either Ethereum or Bitcoin from any exchange that accepts your banking card as a valid payment option. You can purchase BTC or ETH from Coinbase exchange (or any other exchange).
The second step is to transfer all the BTC or ETH from your Coinbase wallet to any other wallet that lets you exchange your BTC or ETH currency to Steem. You can use any of the below-listed wallets –
After conversion, you can store and spend the Steem cryptocurrency using any of the Steem wallets listed below –
As of 30-10-2018, the market value of Steem is equal to $0.781, which means that you will get a total of 129.113 Steem tokens for $100 as per the latest value. The price of Steem is dependent on the growth of the overall crypto market as well as widespread use of the Steemit ecosystem.
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