Andreas Antonopoulos and the Steem blockchain

A few days ago, I saw this video where Andreas Antonopoulos is asked what his opinion is about Steemit. I am happy to see someone asking him this question. You can see the video below:

The video is only a few days old, I don't know how recent the recording is though.

Having said that, it does look like Andreas knows very little about how the Steem blockchain works. And I don't blame him for that. But it does show that the Steem blockchain and DPOS (Delegated Proof-of-Stake Consensus) is still not being taken seriously. Although this protocol has been able to do more transactions than Bitcoin or Ethereum.

Not many people are watching. Most of the attention is going to Bitcoin and Ethereum. I do understand this and, once again, I don't blame people for not having looked in to how the Steem Blockchain works. But in my opinion, this shows that Steem is still a hidden gem.

I wanted to address one specific comment Andreas makes in the video. He says that when people tell him about Steemit, they mention that he could make a lot of money with it. And he explains that this makes him skeptical and he is probably off putted.

Now I want to pick up on that and explain that the selling pressure for Steem is a lot lower than it is for Bitcoin.

Why is that?

Well... The Steem blockchain is already operating on a proof-of-stake algorithm. This means there is no mining being done by computers. With Bitcoin there is ONLY computer mining. This also makes it so that there are real costs (electricity bills, etc.) that need to be paid when mining Bitcoin.

There is no such cost when "mining" on the Steem blockchain. Mining on the Steem blockchain is done by creating and curation content.

Mining Bitcoin has fixed costs: mining equipment and energy usage. Mining on the Steem blockchain doesn't really have fixed costs. It has a few variable "costs": the time you take in creating and curating content. As long as you have a computer and an internet connection, these are the only tools you need to "mine" Steem.

So Andreas, when you hear people telling you that you could make a lot of money on Steem. That person is probably not the best person to listen to. But he or she might still be right though, you could probably make good money on Steemit. Having said that, you should understand that the Steem blockchain is not a get-rich-quick scheme. If anything, it is a better and cheaper type of blockchain solution.

The above paragraphs should make it clear that the selling pressure on the Steem blockchain is actually a lot lower than with a Proof of work type of blockchain Bitcoin is operating on. Next to that, the Steem blockchain already has a built-in token to channel the selling pressure on the platform. This token is called the Steem Backed Dollar. The token is liquid and is designed to be par with the US dollar. But studying how the Steem Backed Dollar works is a topic for another article.

Anyhow...

After writing 'Mastering Bitcoin' and 'Mastering Ethereum', let the next title be 'Mastering DPOS'.

That'd be great!

Keep you posted,

The Monetary Few