Why does a digital currency have value? That was the first question I asked myself in order to determine (subjective) what makes Steemit / Steem valuable.

In order to approach an answer to the question let's break it down to the various core attributes (not in particular order) that any successful digital currency must have.

1. Security

The single most important item I think we can all agree on. If you can't trust that your digital currency of choice is secured from outside attacks, manipulation, fraud and theft than most of us wouldn't use that currency.

The Steemit.Inc team released multiple posts about this topic. One of the latest posts from @dantheman explains Steem's blockchain algorithm DPOS (Delegated Proof of Stake). I don't understand the technical details behind it but based on the description and response from the community the DPOS algorithm seems to be as safe as it get's.

2. Decentralised

If you read through the web you will find many who say Steem is not decentralised. I think that many confuse Steem with STEEMIT.

• Steemit is a centrally held Blockchain based application, much like Blockchain.info.

• Steem on the other hand is a decentralised blockchain which is leveraging segregated and isolated witness node operations from around the world through Delegated Proof of Stake (DPOS) consensus.

3. Limited

One if not the most driving factors of what determines value is supply and demand. The reason Bitcoin for example is so valuable today is because there is a limited amount of supply and great amount of demand.

One weakness I find with Steem (I call it weakness because I don't know it better) is the huge available supply (~14 times Bitcoin!).

I don't understand why such a high amount of available supply has been chosen but I do understand that it will need a huge amount of demand to bring price up.

So if you ask me about one thing I don't like about Steem, my answer would be the high amount of available supply.

4. Transactions

Next to Security Transactions and Transaction Speed are the second biggest items in my opinion.
I have read a great post today from @stephenkendal that the average daily Steemit transactions are approximately 93,000 per day. Unless I am wrong that makes Steem the second largest when it comes to transactions after Bitcoin.

I read many comments from people being excited about this but I don't understand why? How do we generate value out of this high amount of Transactions? I don't see a steady increased Steem price or increased Steem volume being traded on the exchanges due to it.

5. Innovation

In that area I think Steemit / Steem are leading performers!
Steemit is the first successful social media like platform build on the blockchain with a huge amount of active and loyal users.
The algorithm used by Steemit is also innovative and future proof.

#6. Market
This is a very interesting item and I think very important.
What is any currency worth if there is no Market where you can use it.

This is one major area where I think further improvements need to be made since there is currently nothing available (as far I am know) that can be bought, sold or traded with Steem.

Once we have kind of a marketplace where goods or services can be purchased with Steem we will move to a completely different level in all areas.

Conclusion

To me Steem is valuable in a sense that I can share my ideas and opinions and get rewarded for it. I also have most of my investments powered up so the continued success of Steemit and Steem is in my best interest.

If the developers continue to put effort into this platform and the blockchain that there is no other way as up in my opinion.

One critical thing in my opinion that needs to happen to reach the next level is the implementation or use of a marketplace or gateway to the "real world" where Steem can be used to purchase goods and services. Otherwise what is the point in holding a currency.

Let me know your thoughts.