F**k Facebook...Reddit Makes Steem Worth $7.20

I see a lot of people on here justify the value of the Steem platform by using Facebook as a comparison. To start, the two ecosystems have nothing in common. Facebook is more interactive and personal with real time messenger, the ability to send messages, posting on walls, etc. This allows for a much more interactive experience. Now, do not get me wrong, I am not attacking Steemit, simply stating the differences.

Steemit is portrayed as a blogging platform and, to a degree, it is. In this sense, Steemit is more like Google Blogger and Wordpress. People have the ability to write up their blogs in whatever manner they want. However, this is not all there is. As we can see, Steemit is also a way to post interesting articles/videos from around the Internet. In this regard, it is more like Reddit than Facebook.

Reddit boasts itself as "The Front Page of the Internet". To be perfectly candid, I am a reader of Reddit. For the past 5 years I have visited a few technology/futurism categories on there. It is a wonderful place to catch stories about what is going on in particular fields. It lacks the personal contributions like we have here since 98% of the posts are just links. So from that perspective, as a linking agent to information, Reddit is terrific.

In my experience, that is where it stops. To maintain complete disclosure, I also admit that I never once posted on there nor was into up or down voting. It was simply an information site. Rarely would I read the comments unless there was something really interesting that caught my attention. Again, I didnt feel like that is a great mechanism for that kind of interaction.

Which brings us to Steemit. This platform also provides the ability to link to different articles and videos. While not the intention and, to be candid, a bit frustrating at times, there is the ability to have the "front page of the Internet". As we get more people with expertise/interest in different areas, I am sure the information posted in many of the categories will grow and improve.

That said, there is also the interaction side of things. Reddit as a feature called self.(category) where people basically post whatever original content they want which starts a discussion. Usually this is a question or a short paragraph. While I found most of these pretty useless, there were a few times where some helpful information was present. On Steemit, it is a totally different area. People are actually writing articles and interacting with their readers. It is a Blogger meets Reddit hookup. From this perspective, this platform has a lot to offer.

Which brings me to the fun part. Steemit is still in its infancy. There are still under 350,000 users which is 1% of Reddit and a rounding error compared to Facebook's monthly visitors. We are still seeing a lot of applications designed which will continue to grow. That said, I feel that instead of looking at Facebook, view Reddit if you want a valuation.

CNET published an article this past July which spelled out the companies numbers as it went for $200M in funding.

https://www.cnet.com/news/reddit-1-8-billion-alexis-ohanian-redesign-steve-huffman/

At that time they put a value of $1.8B on Reddit who has around 300 million users. Certainly, under normal circumstances it is lunacy to compare a 300M userbase to a 350K one in equal light. However, when discussing the blockchain, these are not normal circumstances. I feel that Steemit has more to offer as a platform right now than Reddit does. While the users arent there, yet, we can look to things such as DTube as an added value which is non-existent over there. That said, this is just a minnow. The whale in this debate is one thing: money.

Reddit had to get $200M in funding while Steemit creates it from its blockchain. To me, this is huge. Companies are often desperate for funding yet Steemit has build in value simply created from the blockchain itself. In addition, and much more important from the growth perspective, Steemit PAYS people to provide content. This is huge. How much does Reddit pay for content to its users? We all know the answer.

So is Steemit worth as much as Reddit? Looking at the market cap, obviously not. Is the potential for Steemit to be a $1.8B value like Reddit? In my view yes and it is not very difficult to get there. Consider this. If just 10M of the 300M Reddit users came over to Steemit to get paid for their services, that would put this platform at about 1.5M users. Since we have $250M market cap with 350K, it is easy to see how a 7 fold increase is very possible. At this point, I dont think it will take anywhere near 10M users to get that type of increase in Steemit. In fact, I will go so far as to say, this is a done deal.

And that is how we see Steem worth $7.20 each ($1.8B/250M).

If you enjoyed this send it to all your friends on Reddit and Facebook...oh and upvote it if you want.

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