Steemit Crypto academy: Understanding Decentralized Finance Part -2 [Topic 5]

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INTRODUCTION

The expansion and enlargement of the cryptocurrency market has been mind blowing as there has been a tremendous growth within the past few years which stands currently at a market capitalization of about $365 billion. As the market enlarges, so many altcoins began to gain recognition amongst them is the Steem.

Since inception of steem in 2016, the flow of Steem has drastically risen by 100% every year , a trend that is likely to occur often.

Compared to other crypto currency Steem is quite different as it doesn’t only rely on mining to establish new coins,as it creats new steem on a daily bases

STEEM BACKED DOLLAR

Steem Dollars, is one of the cryptocurrency associated with Steem blockchain,it is known to be more functional and stable. It is perceived to be valued at 1:1 in comparism to the US dollar, which implies that 1 steem backed dollar is believed to be equal to the price of Steem that can be purchased with a dollar.

This was so i.e in respect to the one dollar value until november 2017 when it hit a high of about thirteen dollars at the tail end of 2017. Currently a steem backed dollar should be going for around $6.7 american dollars

A Steem Dollar is seen as stable, as 50% of the payment goes to creators and curators,it can be said that Steemit is processed in SBD to prevent them from the issue or situation of rising and falling of the Steem cryptocurrency. It is equally possible forsteem dollars to be traded on a variety of exchange platform.

You can sell out your SBD by turning it to Steem , and then turn it to real cash . It is possible to exchange SBD for Steem Power.
It is important to categorical note that one major benefit of having Steem Dollars , is that by holding them you have a 10% annual interest .
Thanks Prof ( @yohan2on) for this beautiful and educative piece of work i really appreciate you greatly

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