Which is best to buy? Steam, Steam dollar or steam power

in #en-us7 years ago

Steem, Steem Dollars, or Steem Power? What the hell should I buy?
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Welcome to Steemit! As a new user, this question has plagued my mind.

If you're reading this, you're likely wondering the same question. Out of these three choices, which cryptocurrency should I HODL for long term growth and benefit?

I'll do my best here to try to quickly break down these three choices so you can make your own decision.

What is Steem?
Steem is the base currency of Steemit.

It is designed for speculation. This is the only 1 of the 3 currencies that can be traded on exchanges like Bittrex.

Steem is used to buy Steem Dollars and Steem Power.

The quantity of Steem doubles every year.

In most cases, due to the inflation of 100% per year of Steem, you'd want to hold on to steem no longer than 10 days (otherwise, the built in inflation is devaluing your Steem by 0.19% per day)

What are Steem Dollars?
Steem Dollars are not traded on any exchange. The only way to trade this is to change it for Steem, then you can trade Steem on any exchange like Bittrex.

Steem Dollars are pegged to the price of a US Dollar. $1 Steem Dollar is equal to $1 US Dollar.

Steem Dollars also pay interest. If this is 10% over a year and you have $100 Steem Dollars, then you'll have $110 Steem Dollars at the end of the year. Whatever the price of Steem is, you'll be ensured to have $110 USD worth of Steem when you decide to cash out your Steem Dollars.

This was invented for stability.

If you have $1 Steem Dollar and you want to cash out, and Steem is trading for 10 US Cents, you can exchange that $1 Steem Dollar for 10x Steem coins. You can then sell those 10x Steem coins on an open market exchange for 10 cents a piece for a total of $1.

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New flash, buddy hero. You can trade SBD on exchange now which results in a non-USD-peg. SBD is no longer 1 USD/ 1 SBD.

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