Steemit: The long awaited value layer to the internet.
Hi Steemians,
The past couple of weeks have proven that Steemit is not just a force to be reckoned with but that it is well on its way of becoming the most widespread crypto currency in the world.
At the time of this writing, Steem, which is Steemit's fundamental unit of account, is worth $4.25. And the way things are looking, this is merely the beginning.
When i got into Bitcoin and Altcoins around 2013 i was under the impression that Bitcoin would become the most widespread cryptocurrency. My opinion on this has however, drastically shifted. Bitcoin, the world's first cryptocurrency is undoubtably brilliant technology. There is however one crucial point that will not allow it to be adopted by the masses. There is little to no clear incentive for people to start using it.
As a crypto enthusiast i have, on many occasions, tried explaining the technology and its benefits to people. It seems however that persuading people to start using this technology is easier than it sounds. The problem in many cases is that people are often under or misinformed yet higly opinionated. They have very little knowledge on what this technology is yet many often dissmiss it as just another fad.
Speculation
The vast majority of people who hold Bitcoins or altcoins are keeping them in their wallets for speculative reasons.
Judging from my own use, or rather, lack thereof. I can tell you that even as a crypto enthusiast, the number of times i have actually used Bitcoin for payments is very rare. The reason this is the case is because we have to come to terms with the sad reality that after almost a decade, The number of companies or merchants excepting Bitcoin hasn't significantly grown, and i'm not sure it will any time soon.
Volatility
It has been mentioned by many people in the crypto space that Bitcoins ongoing volatility makes it unsuitable as a currency. Stability is an important feature of any working currency. As long as the price jumps up and down this will form a serious barrier for adoption. If i was merchant i would be very worried that the currency i except today might be worth half the price tomorrow.
And Dan said: Let there be Steem!
It's clear hopefully to many people, that Steemit is the first cryto platform that successfully tackles many of the problems mentioned above.
First of all incentive, Steemit clearly incentivizes the user by allowing them to gain monetarily from producing content. This is a very significant feature and one that currently no other cryptocurrency has. The magic however is how this mechanism is implemented, while there are other platforms that return some of their value to the user, predominantly through advertising. Steemit does so with far greater efficiency and zero advertising!
Then there is volatility, by introducing a currency to the platform that is pegged to the US Dollar, namely the Steem Dollar. Steemit is capable of successfully mitigating this volatility. The fact that Steemit is centred around three units that exist within the system which each have their own function is brilliant. STEEM as the fundamental unit of account, STEEM POWER as the force to determine influence and STEEM DOLLARS to facilitate non volatile pay outs.
All of this makes Steemit the most well designed crypto platform to date. And will make it possible for Steemit to actually become the long anticipated 'value layer' of the internet.
Keep on Steeming!
Did you enjoy reading this post? Please consider upvoting it and follow my blog on Steemit!
Great post. I'll be keeping my eye on your material . I hope we can all create lasting Steemit relationships that are mutually beneficial! :)
I am a simple man, see good post - put upvote!
if you are simple too - visite my blog @burmik123 ))
Great post. I'll be keeping my eye on your material . I hope we can all create lasting Steemit relationships that are mutually beneficial! :)
I'm optimistic, however, I've only been using steem for a day and seems a lot of users are trying to game the system.
Great post. I'll be keeping my eye on your material . I hope we can all create lasting Steemit relationships that are mutually beneficial! :)
Solid post that brings up some interesting points I would like to expand upon. Volatility: Steem dollars are not volatile, but Steem the currency definitely is, more so than Bitcoin in fact.
On Bitcoin not being the winner: Right now hardly anyone has heard of Steem, I think it is great and does add an awesome "Layer" that will get people into cryptocurrency, but to imply that it will overtake Bitcoin is basically irrational exuberance. We are all in a little Steem bubble here and we have to realize the amount of developers, huge institutions, time, and money that has already poured into Bitcoin. Also right now you need Bitcoin to purchase Steem- that says a lot right now. So I appreciate your post and its points and I think people should be very excited about Steem, but we have to keep a level head about this thing also. Keep spreading the word and doing a great job. My latest Steem post is here: https://steemit.com/steemit/@bitcoinmeister/steemit-users-need-to-break-their-coinmarketcap-price-checking-addiction-and-work-more-on-marketing-steemit-to-the-masses
irrational exuberance huh, eloquently spoken professor LOL