Why every penny I make on Steemit is going to go into Steem Power - A brief overview of the Steem Crypto Currency

After some research into the platform, I found out more or less how it works. There are three categories in which Steem can be stored; Steem coins, Steem Power, Steem Dollars.

Steem coins are generally for either cashing out of Steem, buying Steem power or Steem dollars. They do not gain interest and are more like a piece of property or a stock. Their value can go up or down, depending on the market. Also, the value of the coin dilutes about 0.19% a day, so unless the price goes up on the currency exchanges, the value is going down day by day.

Steem Dollars on the other hand are stable. When you are holding a Steem Dollar, you can buy Steem coins at their market value. A Steem dollar will always be worth one dollar of Steem coins. Another important feature of Steem Dollars is that they gain value over time in the form of interest, which is variable considering market conditions.

Finally Steem power is the most important because it will allow you to earn more Steem Dollars every time you blog and upvote other peoples posts. So this is why I am investing into Steem Power. The more Steem Power I have, the better value I can receive on my unique posts. Steem Power can also be cashed out over 104 weekly payments, so if you get a high enough balance you can cash it out over time if you need to. It also gains some sort of interest over time, and at a much higher rate than Steem Dollars.

Regardless of how you decide to spend your Steem Dollars, I highly recommend investing into Steem Power, if you want to ensure that Steem is around for years to come. Steem Power is like an investment into the community and I know I will be buying as much Steem Power as I can.

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