Bitcoin similarities — Steemit

Bitcoin similarities

in steem •  last month

Believe it or not, but in many ways Steem reminds me of the early days of Bitcoin even they are completely different in nature. Hear me out.

In the early days, people accused Bitcoin of just being a scam, magic internet money with no real value. Now this is in a way understandable for the people that didn't take the time to dig deeper into it and realize what the true innovation of blockchain was. In a time when Internet scams such as Ponzi and MLM schemese were popular it was difficult to differentiate between the two. You really had to take time to read the whitepaper or follow discussions on forums of other people getting deeper into it to really understand its possible potential. Same thing goes for Steem, even though the innovation of blockchain should already have been proof enough there were still a lot of people who to begin with didn't understand it nor did they think Bitcoin was legit either. Not only that but there were people who started saying that Bitcoin was the only real blockchain and everything else is a scam. It is quite funny how short sighted people can be and it is sad that some of those are still around pretending to be evangelist of the tech. So Steem may have had a rough start and the same goes for many other cryptocurrencies at the time, same thing goes for Bitcoin.

"Bitcoin is only used to launder money, buy drugs off of Silk Road and for pump and dumps". Luckily Steem is a lot more open and connected to individuals than Bitcoin was at the time, but people have started to understand what the blockchain is and how it works nowadays to know that Bitcoin is not a great currency to use for transactions you want to keep hidden. Mainly due to all transactions being able to be traced and when you want to withdraw them you have to go through exchanges who most nowadays require KYC. Same thing about Steem where from the beginning many choose to verify their accounts linked to their identity to gain trust of the investors to easier receive rewards for being themselves - or more importantly not just being another sockpuppet. Although Steem has not had as many pumps yet, many have accused it of being a circle-jerk where investors are just rewarding themselves with the rewards and getting rich due to their early advantages. I'm not saying this is completely false, but at the same time this is a social platform and people like to reward people they know more than those just providing quality content. Bear in mind that this is mainly in regard to the early days of Steem, I do realize that curation is not working as well nowadays and needs a fix. Regardless there are ton of accounts that have come here with barely any investment and have been able to earn their way up through their activity. Same thing can not be said about Bitcoin due to it needing hardware and putting that to work to give you a reward of its new distribution, but in the beginning that was easily done with only a couple processors or graphics cards. Now I believe we are also nearing the end of the easy rewards earned here on Steem and the more projects pop up and the more users join the harder it is going to get.

A lot of Bitcoins are lost forever due to user error, exchange scandals and other scams. Luckily for Steem people are a lot more vary about cryptocurrency this time around and due to its social aspect it is a lot easier to be prepared for these things just by reading content on Steem and learning from your followers. Whereas many Bitcoin holders forgot about their wallets early on because they just didn't care or trusted Mt. Gox with their coins or invested them into ICO's thinking they'll make back a lot more - on Steem things have been quite different here. I don't think many have lost their keys although you do hear it every now and then, luckily that mostly effects newcomers who often don't have a lot of Steem to begin with. Even though Poloniex has been such a pain I don't think anyone has actually lost much Steem to exchanges getting hacked or running off with your coins. About re-investing Steem into some other projects it is hard to say but it wouldn't surprise me considering how many accounts who may have underestimated Steem may have sold it for something else and lost a lot of value that way. Luckily the future of investing here on Steem will be quite different through the powers of delegation and curation and will keep users a lot more safe than previous crypto giants have.

Over time it is astounding to see how far Steem has gotten compared to Bitcoin at this age. Sure people are a lot more aware of cryptocurrency now and that's mainly thanks to Bitcoin, but due to Steems technical advantage we are also so far ahead in transactions made, users aquired (even though many are AFK because some people just don't learn that its during the lows that you should be most active - but they'll be back :)) and just the explosive nature Steem has where everything can have a chain reaction depending on price and the way it affects the rewardpool. Most importantly the Steem blockchain being able to take that usage and handle it well with no bottlenecking and making it insanely expensive for users to use.

If you happen to come up with more similarities between the two, feel free to share them in the comment section and discuss it further there. :)


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Hey Acidyo! Thanks for sharing your thoughts. Fully agree. :)

The first Year of Bitcoin on Coinmarketcap
Bitcoin price, charts, market cap, and other metrics  CoinMarketCap - Mozilla Firefox.png

vs. the fist Year of Steem on CMC
Steem (STEEM) price, charts, market cap, and other metrics  CoinMarketCap - Mozilla Firefox.png

Its not the same Year, but i think its still interesting. If you see the full timeline you think that nothing happened the first years in BTC. Maybe in a few Years, when more and more People discover and understand, Steemit could look the same? ;)

Bitcoin price, charts, market cap, and other metrics  CoinMarketCap - Mozilla Firefox_2.png

Screenshots from https://coinmarketcap.com/

| Regardless there are ton of accounts that have come here with barely any investment and have been able to earn their way up through their activity

Well I’m the living proof of this statement, I remember I can up on steem with absolutely nothing but I have managed to accumulate 1492 steem, it not a lot but I’m happy I managed to get to it!!😊

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Same here. I have never invested in Steem, except for my time and energy, and I have gotten a decent amount by now. So it's definitely possible for people who really want this.

Excellent article
Steem is well advanced than bitcoin in every way- use cases, transaction times although it has few fixable issues.
With SMTs round the corner, the price of steel would be up, I believe.
Best time to buy now. We might not be seeing these lows again

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SMTs were right around the corner 12 months ago. How big is the corner you are referring to?

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Heard this goes on the test net in Jan and mainnet in March.
Hopefully

The similarities that you point out have a lot of credence. I also agree totally with you about being most active during the lows. Personally I will hodl, stay active, and realize that things do not happen over night. It is all about Steem being able to grow by continuing to remain malleable in order to keep pace with demands that can be addressed within the Steem blockchain.

I truly think Steem could be "crypto for the people," in that you don't need the upfront investment, and there are no fees like BTC. As far as cryptos banking the unbanked, Steem has the most potential!

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Steem price follows every direction BTC price moves so I am confident that steem will see more better days despite the sell pressure it has for most users and always has the threat of devaluation because of it. But steem will survive because it has a community-backing so we just have to be patient. @acidyo

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I completely agree. Bitcoin was one of a kind when it came out, and while Steem certainly isn't one of a kind it's features are rather astounding. It has a rather well functioning stable coin aka SBD which isn't backed by a physical commodity like cash for Tether. Correct me if I'm wrong but I know of no other crypto currency that is even trying to do that. That alone makes the current price of Steem ludicrously undervalued, which reminds me of one of my favorite quotes by Warren Buffet: "Be greedy when others are fearful, and be fearful when others are greedy." Me using that quote is rather ironic considering Warren Buffet is anti-crypto but if you read Warren Buffet's works he actually says that he doesn't invest in tech companies because he isn't smart enough, so it honestly shouldn't be even slightly surprising or concerning that Warren Buffet is anti-crypto, but that's beside the point.

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Warren is literally making a fortune off his investment in Apple

I think, Steem is spreading faster than Bitcoin, because Bitcoin as a token did not have any usage other than trading, where as steem has lot of potential in terms of no of dapps being developed and incentivizing people. Today, its easy to just get engaged with these dapps , even though, someone is not a regular content creator and earn few steem daily. And apart from that, these dapps have their own tokens as well, which is like a add on. So if it took bitcoin to reach this level in 7-8 years, then probably steem is going to do that in half of the time, 2019 may be the year when it will start spreading rapidly.

This great comparison gives perspective for those who were not there or here in the early days. Interestingly, there are still things that the bitcoin community still has not figured out completely 10 years later like scaling the network for quicker and cheaper transactions. However, this is a fundamental feature of STEEM that also continues to get better. The future is bright for this blockchain when compared to others.