How can we solve Steem / SBD confusion?
I saw this comment on my YouTube page today after talking about STEEM and the Steemit platform:
It's a question that I get asked quite a lot, especially when I talk to people about Steemit. We have Steem, Steem Backed Dollar (SBD) AND Steem (which newbies might think is ANOTHER coin).
This creates a situation where new comers to the Steem ecosystem are intimidated and hesitant to buy coins - They need to understand the concept of Steem power, powering up/down and even "convert to Steem" before they
I'm still wrapping my head around on how to solve this issue. People in the crypto world definitely need a fast way to understand Steem. Reddit uses a concept called Karma - The good thing about Karma is that the name aids understanding - 'Do good and good things will come to you". This naturally leads users to want more karma and allows for faster understanding.
How can we improve the situation for new users? Allow them to understand our system better?
There are 3 types of currency. 1. Steem Dollar is used within the site amongst steemit community. 2. Steem Power is like owning a savings bond that is backed by steemit. It accrues interest 10% annually. It gives the user larger voting power and higher rewards for content created. SP can not be cashed out immediately, it can get paid out over an extended period of time. 3. Steem: It can be used both inside the Steemit community and in exchanges and traded against other currencies. Regards @sensicat
That was the intent of the Steem Dollar, but investors seem to want it too. My understanding is that Steem Dollar should not fall below a dollar. What I don't understand is the mechanism that prevents that.
I think the first step is to create a unique symbol for each currency and stop putting the dollar sign next to the rewards.
HAHAH didn't think about that . thats so true. the dollar sign is attractive but it causes even MORE confusion!
I think that this needs a full, big video explaining steem, steemit and the whole ecosystem.
I can already see my feed: Boxmining "Steem in a nutshell"
That would be a Great one!
It has become particularly confusing with Steem Backed Dollars not being pegged to the dollar anymore. Or they dont seem to be anymore.. Steem is the shortest named of them all, start there lol.. Bitcoin Cash must have a double problem having a BCH ticker some places and a BCC ticker at others.
Yeah. Ticker confusion isn't that bad because people usually start from coin market cap. You're definitely right with SBD - people will start asking "why isn't it a dollar" etc
In the ticker symbol respect there is only one (STEEM) too. I have ran into a problem like this several times recently though. Buying mybit token I almost bought mbit instead.. and buying Aion I seen another coin called Aeon. Steem is more of a having multiple tokens problem I guess..
wow that ticker confusion is serious! it sucks how different exchanges list names differently. I hope we can clear this up this year! we have SMT - steem media tokens coming this year too!
It's Smart Media Token not Steem media token. Less confusion there.
Haha yes. I hope they are just called SMT in the underlying code like ERC20 tokens are or something similar to avoid the confusion
@drpuffnstuff @boxmining
Let us take it like this:-
3)us dollar not equal to canadian dollar.
The name of the currency is same. That is " Dollar" but the value is different because the prefix is different. In case of steem dollars the prefix is steem. Thus it does not matter if steem dollar is not pegged to the dollar.
Also there are people from every country on steemit. Almost from more than 200 different countries. Thus i think steemdollar can have its own identity.
i love your videos and blogs my man :D keep it up
Thanks @aistis !
It's hard to explain when SBD isn't pegged to the $1 of STEEM as it is described. I'm not sure how to tackle this issue other than saying each asset has a market of it's own.
Yeah .. I was expecting SBD to go back down to 1 dollar, but at this point in time.. might as well just enjoy the rewards
I will also love the idea for a video, I really miss the time when Steem Dollar was below the price of Steem :s
I like the use of word "Karma" by Reddit as it allows for faster understanding.
This truly is very confusing for people who are new to crypto or Steemit in general. Maybe they need to try and make it more simple to understand. I have personally been in the financial world for a bit and am still a bit confused. :P Maybe try and develop specific names for the whole concept which helps aid new users to grasp the concept quicker? Not too sure haven't given much thought to it. Interesting post, thanks Michael! Big fan of your videos!
Thanks!
They should simply remove the Steem Power naming altogether and just name it "Power" balance in the wallet. Just explain that this is how much you contribute to/earn from the network. Lastly, tell the users you can withdraw Steem from the "Power" balance only gradually.
The problem with that would be how do you get steem - > power. Is it a 1:1 ratio? users might get confused in that aspect.
Well, it'd still be 1:1 because you wouldn't convert anything: you'd simply put some Steem in the "Power Balance". I just thought it'd be a simpler concept for people to grasp: a piggy where you keep Steem for longterm. This would simplify things because it would remove "Steem Power" altogether.