The Two Things That Separate Steem From Other Blockchains

It is no secret that I am very optimistic about the future of Steem. At the same time, I believe Steem to be one of the leading blockchains thus far. Yes, we know things could change in the future but when it comes to what is taking place, Steem is near the top.

Obviously, this is not reflect in the price since STEEM is way down on this list. However, we must always remember that markets often do not reflect things properly. There have been more then a few times when a stock was priced very high just days before the company went bust.

As I look at the basics of Steem, there are a couple things that separate it from the rest of the blockchains.

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The Content/Reward System

This is a feature that I think is overlooked by many. Each week, there are roughly 800K STEEM available that can be earned by users. While this tends to make for some weaker hands since these people do not have skin in the game, it does allow for, over time, a better distribution. It also allows people who are dedicated yet lack the resources to buy STEEM to accumulate it.

The system has been tuned over the past couple years. While there could still be more tinkering to go since we see numerous discussions of ways to improve it, we do know this is a system that works. It is also being carried on to those projects that are going to use the Smart Media Token Protocol.

Steem offers developers a turn-key system in this regard. We see a lot of entities trying to copy it without a great deal of success thus far. Anyone with the technical expertise can unite their project with this blockchain and be operating instantly. This is a fantastic time saver.

While the present mindset is to tokenize the Internet, consider the future possibilities of that. We are entering Web 3.0. This Internet is going to see the merging of our digital and physical worlds. The Internet will not be relegated to the activities done looking at a screen.

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The Powering Up System

I came across this idea the other day when watching a video. The individual was making the case of payment versus store of value.

Here is the simple concept: Add up the marketcaps of Visa, Paypal, and Mastercard and compare that to the marketcap of gold. Which is more valuable?

Gold is worth about 10X what the other three are combined.

Certainly this is a basic analysis but it does drive home the point. Many are trying to become "Internet money" or be the currency that everyone uses. The truth is all cryptocurrencies have the ability to make payments. We know STEEM has this feature. Also, as time passes and swap systems get developed, it will only get easier to use any currency for payment.

What will separate some currencies from others is the ability to store value. Which ones will hold up over time.? I know that is an odd question to ask when the market was torched by 70%-90%. Storing value does not mean things never go down. Gold went from $1,900 to $1,200. Markets go up and they go down. As things mature, we should see a reduction in the swings as more people are involved.

The power up process will allow STEEM to hold it's value better than most other tokens. So far, this was not the case for the reason I, along with others, outlined. With so many tokens being issued without buying in, the hands were weak. I relate this to the kids inheriting the house from their parents. This is often sold at the lower end of the market because it is "found" money.

Over time, I see more people buying STEEM meaning they view things a bit differently. I know from personal experience that when there is money on the line, the emotions are different.

With people buying STEEM and powering up, eventually there will be less tokens available for sale on the open market. Many other chains are trying to figure out ways to get people to hold the coins. Steem has it built in. There is instant incentive to hold as opposed to dump the tokens. One's operation on the blockchain depends upon it.

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This is a long-term process. We are at the start of an entirely new industry, one that it still finding it's way. That said, I am very confident that Steem is not only near the top of the blockchain class, but it also has the ability to remain there. We are seeing some tremendous development taking place.

However, it is always good to look at the foundation. These tow basic features are going to serve Steem very well over time. It provides access to STEEM without having to buy in while also providing incentive to hold onto the coins. While others are trying to figure that out, Steem already has it in place.

By the way, for those who love numbers, here are some for you. There are presently 260,801 accounts with at least 1 SP.

This is up from 260,755 when I looked yesterday.

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