Still Confused by Steem, Steem Dollars, and Steem Power? The Power Plant Analogy

in #steemit6 years ago (edited)


Welcome to all of our new users! Like most people who discover Steemit, you’re probably wondering about the currency tokens: STEEM, Steem Dollars, and Steem Power. Why do we need three of them? How are they different? When will I get paid? These questions are understandable, but they focus on the pieces. What we really need is a 200-foot view.

Let’s power up the drone

The basics of Steemit are easy to understand: you make money by posting and voting on good content. But as you get hooked on the great articles and moneymaking potential, you’ll want to understand how it really works. Steemit and the Steem economy are a complex system with lots of moving parts, so you’re in for quite an education.

If you try to understand the each part of Steemit, you’ll get there eventually. But I think there’s an easier way to begin. Turn on that monitor, please, and I’ll take the drone over STEEM CENTRAL, our main power plant. When you see the whole platform functioning, I think you’ll have a better understanding of the parts themselves and the roles they play. It's an imperfect analogy, to be sure, but a helpful one also!


What Powers Steemit?

What powers Steemit? The blockchain spins the gears. Witnesses keep it honest. Developers enable the Steemit social media platform and the payment systems with which we interact. Average people like us provide the content that gives the site its chief value. And we curate it, too, deciding which content is rewarded. Everybody tells their friends about it.

Put that together and what does it give you?

Holy guacamole! If a holistic whole is what you want, here is a model for you. We can compare Steemit to a conventional thermal steam electric power plant. Steam power, get it? Wink, wink. Change the ‘a’ to an ‘e’. But before we go there, I need to explain how a normal steam power plant works.

By then, our drone should be in position.

Steam Power Plants

Thermal steam power plants are used to generate power from coal, nuclear, geothermal, solar thermal, waste incineration, and many natural gas sources. Though there are many variations, these plants basically turn heat energy into electricity. This basic model forms the bones for much of the world’s energy generation.

Here is a picture of a geothermal power plant in Iceland, which uses steam to convert heat from the earth into electricity. Don’t worry about pollution; there isn't much of that. It is just releasing extra steam into the air. This is a very renewable and sustainable energy source.


Here is a diagram of how the main parts of a steam power plant work:


A steam power plant requires water (which can be recycled and reused) and a heat source. The heat could come from geothermal, solar thermal, coal, nuclear, natural gas, or some other source that is hot or can be burned. A pump sends the water to a boiler, which heats it into steam, and then that steam powers a turbine. When the turbine spins, it creates electricity with help from the generator. The generator is connected to an electrical grid, and customers who plug into the grid are able to use that electricity. The steam condensate is then collected an cooled, and that water gets pumped back into the system for reuse.

The Steemit Power Plant

The weather is nice today and they have the top down. Love that retractable roof, Steemians! Did one of the witnesses spring for that? My, it's a sleek machine. STEEM CENTRAL sure looks so light and airy. Such a transparent place.


Now the drone is directly overhead. STEEM CENTRAL sits right below us and we’re looking down inside. The inner workings are plainly visible on our monitor. They look something like this:


Content provides the value to the Steemit social media platform. It is most similar to the water that circulates through a conventional steam power plant. Vaporized into steam one day, more content appears instantly. Content is ever present, always changing, and capable of reuse and regeneration as content creators contribute fresh ideas with new written blog posts, videos, photographs, art, music, and more.

The Blockchain drives everything, like the great pump at a conventional power plant. Spinning out new blocks, generating new data that grows continually, it verifies and enables transactions and posting information. Content can be posted, more currency can be created, and people can get paid. This beast never sleeps.

Steem Power (SP) operates like a concentrating force. Like a boiler, it superheats the content and creates steam. Oops, I misspelled that; I meant STEEM! When you earn rewards for posting and voting, part of this is paid to you in SP. When you Power Up, you are increasing your SP also. Congratulations, you are becoming a virtual Class A shareholder with your bucketful of shiny tokens. SP gives you stronger voting influence. It also gives you a virtual stake in the future growth of Steemit and the Steem economy, since most of the new currency tokens created are paid out to SP holders. Where does the real muscle come from? From your hard work, of course. Creating and curating content makes it all start to bubble happily.

Steem Dollars are the price-stable currency tokens that represent about $1 each in value. You will get paid partly in Steem Dollars (SD or SBD). There are so many possibilities with SD. You can spend these in the virtual economy which is soon to come, you can hold them and accumulate a 10% return, or you can sell or transfer them into Steem, Bitcoin, or other currencies. Like the turbine that’s spun by steam power in a conventional steam power plant, SD bridge the raw power of Steemit with the real world applications of a price stable currency.

STEEM is the liquid currency, much as electricity is the final product from a conventional steam power plant. You can transfer it, spend it, or Power Up into SP. Passing through this generator is the final step before the product of all your hard work is realized. Through bridges, gateways, merchants, and exchanges, your STEEM plugs right into the online economy. When the market cap of STEEM goes up, you are paid more for bringing your STEEM to the market, just as if wholesale electricity rates had gone up and a conventional power plant operator cashed in by selling it back to the customers on the grid.

World Domination

The drone is out of power now. We’re grounding the sucker. Fortunately, we have an appointment with the man himself, the evil genius in charge of the Steemit Power Plant. Let’s see what he can add to our understanding of how Steemit works.


What’s that? He says he has no time to speak at the moment. He’ll make one statement and that’s all the time he can give us. Let the great man make his statement:

“This Power Plant facility is a most impressive creation. And yet, my Power Plant is only the beginning. If you thought I would stop here, you were wrong. (evil laughter ensues) I will not rest until we have achieved total world domination. Onward and Upward, Steemians!


I just signed up after some urging by my subscriber base on youtube. I am glad to be here and am excited to see what I can bring to the table.

I'm here too soon, and I can not believe how useful the platform is

Awesome! Welcome aboard. Please join and contact me there; I'll be glad to help get you started and make sure you get some votes, etc.

how to convert steem power into steem ?

When logged into your account, you will see some drop-down arrows next to your balances. Next to the Steem balance, there should be an option to power down. It takes 13 weeks for the full amount, a one week wait for the first part of that.

Is it 13 for a certain amount or is it for amount? For instance if I make $100 do get ALL of it or do I get to only have a small percentage of it and the rest I get after 13 weeks. Seems like a long time to something you've earned. I don't know if this is worth it if that case.

Your Steem Power is locked up, but can be powered down in 13 equal installments over that many weeks.

Thanks for your reply and please do help out a newbie if you can and up vote.

thx sir for your quick response

I´m still not sure about it, however, I have learnt quite a bit. Thank you very much.

Do you mean it takes 13 weeks for the full amount to be transferred to Steam dollars?
Is that to prevent people from all 'withdrawing' their money right away?

donkey can you help me get some votes and give some advice and tips?

I helped you out with a vote.

I don't know steem will succeed or not because you see there are 13 votes and not even a cent in place . Thats ridiculous.

depends who votes

I just saw this.. could I contact you for help too? I'm a bit baffled - but loving this as as an outlet for my writing.

hey.. I have created my account last year. but had not used it. though I did not get the concept. your article is good for beginners and it helps me a lot. would be great if you share some links. and one more thing... whats your username?

hello, is this thing still active? does it have potential?

Good to see you here juniusmaltby.... i watch your videos on youtube.... keep up the good work!

Steem is very much in need of quality material. I am a part time travel blogger and I'm very much resisting any urge to post memes that appear to get attention, however detract from the blog and the purpose of my writing. good luck with your following here, too on Steem it.


Awesome! I just joined as well. I create mediation films that I hope help people to relax when they watch them. I have not been posting my new content for a few years on youtube or vimeo because I have been waiting for a cool platform such as steemit to post them to. I can't wait to show the steamit community some of my new videos! For now posting a bunch of old content to try and get some followers. Hope you all enjoy!

Somebody tell me again what I can buy with Steem Dollars. I just read the article and still am not sure. Can I use them to promote a post -- or something like that?

Steem Dollars can be sent to an exchange (ex: Bittrex), then exchanged to BTC, which then can be exchanged for STEEM. Steem Dollars are a separate trade-able unit, and can, but do not have to be used on the Steemit Site.

You can buy just about anything with Steem Dollars, as long as the seller will accept them. Otherwise, going through an exchange like Bittrex will allow you to convert them into an acceptable crypto. Hope this helps! Let me know if I can clarify further.

That helped :) Thanks bro

Coinbase will put BTC, LTC, BCH OR ETH right into yo bank account as cash deposit.
You have to send to there first. 2.99% fee I think.

Great explanation of steem power, dollars and how it works like a steam powerplant. I have a better understanding of how you simplified it for a new user to steem my self. Great post!

I also found this post very rich and helpful. Bravo, bravo!

I have never experienced something like Steemit, this is too cool.

Do I spend SD when I up vote others?

Please follow my account, I post daily! :)

It does not cost you anything to vote. You are spending part of the daily reward pool, but your own money remains in your wallet. The more Steem Power you have, the more value you can allocate with those votes.

Understand, thank you very much for the information!

Thanks - I was confused before. But I think I understand now. If my wallet says I have the equivalent of $100,000 does that mean I can transfer to Bitcoin and eventually US dollars? I need a good Steementor!

Thanks for the information! So does that mean that the more Steem power you have te more steem dollars your upvote is worth? And does your Steem Power go down if you upvote?

Informative post. Though it would have been nice to give a little bit more info on Steam Power...the vesting you can convert it to other currencies. Whether the vesting period starts when you power down or not and so on.

That could be a whole new post right there I think. I'm really glad that this content is here for us to learn and have a better understanding of how things work around here. But I am even more thankful to have this network, because I can relate to most people here thoughts. We are all trying to make of this the better workplace and social environment. Cheers @avrdan and @donkeypong, thanks again for the info!

Thank you @donkeypong for taking the time to write such an informative post that helps newer people to the community like myself understand a little more about how things work. Following you and upvoting you. (and looks like I'm comment #200 here so obviously the community really appreciates your work). Thanks again!

this has just confused me more.

SUMMARY: I understand @donkeypong to be saying, you get paid in SBD and can recieve 10% annual interest on it. You can buy products in the STEEM Market Place with SBD or pay to promote your content in the promotion section. If you want to receive money for your SBD, or invest in the STEEM crypto currency that is traded on the exchanges, you must convert it to STEEM. If you want to Power Up, since it's the only way to receive 90% interest or value on the SBD you have to first convert the SBD into STEEM and then convert it into STEEM Power by powering up. You can also withdraw SBD as real hard cash you can touch, by converting SBD into STEEM and then withdrawing it to poloniex where you convert it to bitcoin and then withdraw to Payza or Paypal, or your bank etc...

I am 99% certain this is what he was trying to say.




If it's true, that you no longer receive money on content more than 7 days old, then that will be the tragic flaw of Steemit, or the entry point for a competitor.

People will not produce long lasting high quality evergreen content, but quick timely content they know can run good for 7 days.

I hope that is not the case, but even if it is, it just means Steemit is more supplement and less disrupt.

Please reply if you know the answers to my questions.
@thelordesfinest @knircky @botomatic @drpeanus @stealthtrader @atomica @owdy @gregor-f @beastmastermason @doggguy @beadunks @vilivolcini @skapaneas @easteagle13 @bergy @monty-kirkman @paulmlomonaco @splatterhaus @leprechaun @darknet @johnmelendez @djleo @donkeypong @freedomrings @hitmeasap @bravenewcoin

Did you ever find out if you don't accrue on content after 7 days? I agree with you 100%, I was hoping to put some solid research in some articles but if I knew I'd only have 7 days to yield anything that would never be the case! Quick hits only!

Yeah WOW. THIS NEW FORK THEY JUST IMPLEMENTED IS AMAZING. My upvotes jumped 10x and in some cases 40x, from 0.01 to 0.10, AND ON THIS PARTICULAR UPVOTE IT SEEMS, when I added my vote to yours it jumped to 0.45 so that is a major plus. Regarding the 7 days, you don't earn after 7 days. I am sure of that. They stopped the 30 day rule.

Get busy upvoting or get busy dying.

So if I have 10$ in each SBD, Steem & Steem Power for example & assuming Steemit continues to grow which of the 3 has the greatest potential for growth? If Steem value becomes 10x greater would all 3 categories be 10x greater, or one of them 100x greater etc? Guess I am asking what the potential is for growth in each category, and what needs to happen for that growth in each. #steemon

I brlieve this is hoe it goes. I feel it is acceptable to repeat content.

I too was wondering this please check my blog out too for crypto investing

wow dude thanks for the summary lol that helped a lot!

Very helpful man, I sure have a lot to learn. Many great users help me keep pushing forward though so hopefully I'll make a post that can help others :)

I've created a full ASTRO-prediction to @Reddcoin to entire 2018. You can watch it for free.
Watch it here (FREE):

Same here...I read it twice

you guys ever figured out how to explain STEEM a little easier? it's been a month and figured you might know by now

I got more confused.

These posts are getting me more confused..

The confusion level is beyond 9000 at this point.. lol at least he tried, I get what he was saying though to a degree.

Yo tbh I think im almost there

I upvoted your reply to give you Steem Power! or Steem dollars, or maybe both, I'm not too sure ahah

Do whaaat?

They dont want us understanding it they just want us using it.. lol

yes, i think you are onto something there! lol

Ohh yeah! This post is kinda confusing :p

While analogies make things clearer to you this one for sure has confused me more.

The way that I understand it, Steem Power is used to give people an incentive to keep creating and curating quality content. The more Power you have, the easier it is to have your content seen and distributed. An analogy, if this were twitter--SP is more like the number of followers you have. So by building power, you have a higher stake in the gaining of future currency that is released.

is that it? That could actually be the answer you just gave and nobody noticed it! :) Nice one if that's true... That helps.

This is perfect for new comers.. Very well said!

Hello I just found this article today and it's very informative; thanks so much for the amount of work you put into writing this and please keep sharing great content.

Grate article, I enjoy reading the blog. :-)

thanks you broke it down smother than a babys bottom

Continue to hold the belief in steem on an individual level and reap the benefits of the value of bitcoin as a result? Sounds like we can do this. Good luck Steemians! #trusttheprocess

brilliant overview @donkeypong !

I'm still unsure about who pays for the content. I'll read the whitepaper today, but to me (new user), these posts aren't telling the whole story. Certainly there's a piece missing, but it seems like everyone is making money out of thin air. Where's the catch?

Everyone IS making money out of thin air. That's the catch. There is no catch. Just like Bitcoin and the US Dollar, Steem springs to life out of thin air.

When 12.5 new Bitcoins are mined every 10 minutes, they just appear out of thin air. That's approximately $8000 of new Bitcoin being created ever 10 minutes or about 1.1 million US dollars every day. The price of Bitcoin doesn't go down every day because of the newly created Bitcoin because people want to buy the newly created coins. There is demand for the new Bitcoins.

The Federal Reserve does essentially the same thing when it creates new US Dollars. Only it's network of miners are the Big Banks who take the Dollars the Fed created out of thin air and loan it out to businesses and consumers who want it to buy goods. They demand the new Dollars to make purchases.

The only real difference between Steem, Bitcoin and the US Dollar is how it's distributed. Since Steem is distributed to people who earn it by by using Steemit. Since Steemit is a sort of feedback loop (the more Steem you have, the more Steem you can earn) demand for Steem is created. And like other currencies or coins, where there is demand, there is value.

This article only confused me more, bud your explanation makes it al understandable:P.

I'm glad you found it helpful and welcome to Steemit!

Can I ask you this: when I upvote someone's post am I giving them some of my Steem or is it being newly created? For instance, I currently have 0 Steem, a small amount of SP, and some SMD. I just upvoted your reply, and the $ didn't move at all. Is this because I have very low SP or because I have no Steem tokens currently?

When you upvote someone's post, or your own post for that matter, you are rewarding them with Steem Power (SP) and Steem Dollars (SBD) that will be newly created at the next scheduled payout. The amount of the reward your upvote is worth is based on the amount of SP you have.

For example, I have about 570 SP and when I upvoted your post just now, your reward jumped to $0.02 because of my SP. As you get more SP, your votes will be worth a bigger reward of newly created SP and SBD for posts you upvote.

@gregory-f: I liked your reply and tried to up-vote you. I have a huge amount of Steem Power and when I upvote people it is usually worth a couple of dollars to them. However, your balance didn't move. Is the reason:

  1. Because I can't reward posts older than 5 days? or,
  2. I already used my voting power for today?

Number 1 is mostly correct. You cannot give a reward to a post or comment that is over 7 days old. Actually the cut off for a reward is 12 hours before the 7 day mark.

Number 2 is a little correct, in that you have a limited amount of rewards available and every full power upvote reduces your voting power by 2%. You also recharge voting power by 2% every 2.4 hours. So if you only give out 10 full power upvotes every day you will stay close to full power.

You can see your voting power level here:

You've given the best explanation i've read on this post. It's just simple.

Upvoting this because I wonder the same thing. When I upvote someone and say I had a lot of SP (which right now I have a new account) is that money that I am sending from my own account or is that being distributed from newly mined STEEM? Say I had a lot of SP if I upvote the hell out of everything am I essentially spending my SP? Should I be more careful in only upvoting the very best content? TY in advance for whoever can reply.

Upvoting everything is not a good idea. Steemit is designed for 20 upvotes a day. You could give up to 20 votes at full power and every vote over 20 would weaken the reward for all your votes. So voting for only the best content is better.

When you upvote someone's post, you are rewarding them with Steem Power (SP) and Steem Dollars (SBD) that will be newly created at the next scheduled payout. It does not come out of your SP.

gregory finally ,that was the answer i was looking for the whole day. Thanks man 🎉

Glad I could help.

This is very important and should be stickied somewhere.

I am also confused about this.

Sounds kind of like a ponzi to me.

Which one, The Federal Reserve or the US Dollar? Because if they sound like a ponzi, then you must have been listening very closely.

Only since 1914... ;)

But you need lots of electricity to generate BTC.

And it's not same, BTC is limited while $ printing is unlimited.

Limited or unlimited, all money is created out of nothing. Some just takes a little more effort or energy. In the end it is not how money is created that gives it value, it is people who are willing to accept it as payment for goods or as a value transport that give money value.

Almost all . But that could change if we tried a Mutual Credit System such as Local Exchage Trading System.

Nonsense. Money are assets that have REAL value. Like gold or silver. Those have value because of their rarity, the work it took to mine them and the use they have. ONLY Fiat money is created out of nothing. Even bitcoin takes WORK to create, so it can't be created in unlimited amounts like paper currency.

I do pay for my electric bills too but I don't like mining with a cpu
instead mining with my brain seems much more productive...and efficient.

steem it just use the ledger to confirm transactions and not to generate value.. is the short answer to your question.

Who pays? The Steemit system "pays". With what? With crypto currencies called "Steem", "Steem Power" and "Steem Dollars". If no one in the world cares about those cryptocurrencies then, its like receiving emails from a stranger that have no monetary value. But wait! Steem is now accepted by other people to trade with their BITCOINS...and Bitcoin on the other hand is now accepted by many people in exchange fo their FIAT monies like USD and EURO and many other products and services too. While "we" exchange our time, intellect, effort and other incidental things too,- for STEEM. So it's not really MONEY OUT OF THIN AIR. Its a system of exchange.

You too, can learn more and earn more, if you trade cryptocurrencies. if you would like you can even join us in our project.

I just invested in steem, may steem power be with you all :)

Steemit is showing how the future will possibly migrate to a 'different way of valuing something'. Essentially, money or currency as we know it (as a form of value-transfer) will no longer be the only form to 'recognise' value and then 'transfer' that value.

The blogging or written-word community has always had value, but fiat currency has been 'imperfect' as a medium to recognise that value and then transfer it. Steemit is a system that has been designed or tweaked to specifically capture the value from this type of community and then provides a pathway to ultimately transform it to bitcoin or fiat to use within a wider economic sense. BTC, fiat, DASH etc are what I call "Generalised Currency" where Steem is a specific one. An analogy would be the 'shopping car' versus 'the bus'. The shopping car is ideal to go shopping in, it's small, easy to park and very cheap to run but it holds at maximum 4 people. The bus on the other hand is the opposite of the car but it holds 100 people. They are both both modes of transport to move people around to meet their specific objectives i.e. those on a bus are dropped off at close to their approximate destination. Those in the car have a specific destination and can get much closer to their objective. We have lived in a world where only buses were available to transfer-value and 100% controlled by others (Governments & banks). That situation is now changing.

The value from products/projects like steemit come directly from those who use it (not governments or banks). Its value starts off at '0' but if it fulfills a need then value is afforded to it by that community alone. So basically, a whole lot of steem was thrown into a big pot and everyone was told to transfer it to others content (not theirs). At the same time a channel was opened up to traders to trade this steem money on exchanges if they thought it had value. So far they think it does because people are willing to give them bitcoin for it.

This is an approximation of what’s going on here. The future is going to be filled by thousands of these types of community valued products. This will not threaten the current financial system as some would have you believe. It will compliment it.

I think you are right, now that Steemit has shown that these communities have value and don't need some big corporation (which all started out as the same as Steemit was 4 months ago) to give it value and take all the proceeds for itself, we will see a lot more startups. If you look at the Steemit road map, there are already plans or visions to create many of these startups under Steem.

I'm brand new here; (as in yesterday) and am completely unsure of everything, but it seems to me that Steem arrives it's value out of the community of ideas, much the way the $ gets it's value from the faith in our form of government. The better your idea, or expression of it are, the more value it incurs ( think the U S government v. Zimbabwe, which issued a 10 trillion dollar note worth almost nothing).The more productive you are the more you should earn, as should be the case in any economy.

Thanks a lot for your info, i am new on this and yes it is a great time to live in! Good day people!

Still completely confused..... I converted 15 Steem Dollars into Steem and it did absolutely nothing... I have no Steem.

I looked at the history of splatterhaus' wallet and it shows a record of him receiving 15 Steem dollars but no record of them being converted or transfered to Steem. Yet his wallet reads 0 Steem dollars.

The dialog for converting to Steem says it will take a week. According to the history it has only been five days.

I don't know how I missed the 7 day wait thing... that's awesome, thanks for pointing that out Leprechaun!!

It has now been a week and I still don't see anything... am I jumping the gun and should just wait longer or.....?

Did you get it?

I think what you are questioning is, "how come I can trade my Steem for BTC?"

Well, because, much like the USD, people are willing to accept it as a means of exchange, there is a belief system.

Soon as that belief system no longer exists, there is no value in Steem. Much like the USD. The USD is only 'worth' the paper it is printed on. The belief system behind the face of that dollar bill, is what makes the note valuable. The belief and trust, that you can transfer it in exchange for another commodity, or service.

At least, this is how I see things. :)

Kind regards,

Thanks for explaining this in a simple way for all of us who are new here! I was quite confused at what the best thing to do with my steem dollars. 😊

"If you can't explain it simply, you don't understand it well enough."

  • Albert Einstein

It was a nice read, but as a newcomer, I still don't understand the complete process. Maybe I shouldn't be too lazy and start reading the white paper :-)

Thanks, more explainations of the 3 steem currencies are always welcome.

Well said. This is the perfect analogy.

Great post. I am also new and had a killer week. Currently in the process of shifting all my work over to steemit.

I have a question.

Does SD always aquate to 1 STEEM or $1 USD? For example: If you are holding 100SD and the price of STEEM goes to $3 are your SD worth $300 USD or $100 USD or 33.3333 STEEM?

That's great! Really enjoying your photography work so far. Please contact me on and we can discuss further.

I havent used the chat yet. Is it the same login details as my steem account?

It's different. Just go to and it should let you sign up & pick your own password, etc.

@donkeypong should respond here and not in chat because I want to know too

do they have an actual power plant?

The missing part of this article is it doesn't explain how power down works, while you can find the answers in How to Power Down Your STEEM POWER The Smart Way

This greatly simplies the overall functionality. I'll be sharing this article with the friends of mine that I'm introducing to Steem.

Finally got the workaround with steem power. Thank you!

I will be buying some right away now that i understood the concept.
Iam excited to see where steem will go and am happy to be a part of it.

Yes, thanks guys , that really, really, really clears things up . Super easy explanation, such a marvelous analogy. I was very confused as to what the hell is going on with steem power and steem dollars and steem and how you power down and power up and what that actually does but now it's all so clear and easy to understand. Its mimicking a Steam power plant!!!!!! of course, i'm kicking myself for not seeing that from the off. Thanks again for this simple, direct and honest post. I was blind and now I can see.

This is revolutionary, I am so happy to see people around the world realize the potential of Steem! Stay tuned for my crypto talk channel, looking forward to sharing with you all! Subscribe so i can make educational videos all day!

Thank you for this post. You gave a great explanation that helped in understanding how steemit works as a whole.

Crystal clear now, that makes a lot of sense! up and ready for hard work. w support each other guys!

I am so glad that I have read this. Now I understand the whole thing!

Super explanation, thanks a lot!

I can appreciate a good analogy. Thanks for the lengthy explanation!

This explained things a little more clearly! Good shit!

wtf ? this is either deliberately difficult to mask the super con that is going on here or the author has popped one too many pills. I think we're probably going to run out of steem on this one :)

Amazing,outstanding and oxm concept and the post explain it in a very dramatic way , which actually makes it easy... love and lets steemit guys together ...

great way how you compare the steemit and steam engine! upvoted and followed for more such content! ;)

I was quite confused until I read your article, well put and finely articulated! Thanks!

i thoroughly enjoyed ur post u got a new follower @donkeypong
please check me out too :)

A very enriching article that helps us better understand the operation of Steemit. Steam or Steem is pretty confusing ;-)
Good continuation +++

Thanks for vivid explanation.

  1. What I am interested what happens with steem platform when fiat currency is used to buy steem? What happens with fiat currency? Who benefits from it?
    As far i understand market price of steem goes up, and we as shareholders have potential to bennefit from it. But how does it affect us when big media corporations or social netwotks come in with their money, except we again profit form market price rising. They with big steempower can present their content and push it onto us. In this early stage, those who accumulate lot of steem have nice prospects when price is rising.
  2. How does say in example it benneftis steem and community if big corporation enters this network? How is then steempower distributed and who rules the steem i that scenario?
  3. Is steem in that case more powerfull and we are we as normal shareholders like sheep on field being led by corporations?

I think what Steem needs is a system that gives more preference to our "friends". Otherwise we basically have a reddit that is, in a sense, less organic as you can pay your way to get to the top.

Great post! Thanks for the info. The analogy is more clear for me. It takes a while to understand the model but I give a try from now on.

Thank you for the explanation, was really useful :)

This platform is going to create a huge shift in the world. The ability for content producers to reap the rewards of the value they create rather than major social media platforms keeping it for themselves, it's extremely disruptive - I LOVE IT! This is crypto at its core. This is a cryptocurrency with tangible value and a legitimate utility. Steemians, we are witnessing some exciting times!

Read it twice. And now i understand. Thank you for your good explanation.

Thanks for the analogy! But... I don’t think I fully understood. Where can I find the “official” description of all these elements of steem/steemit/sbd?

Interestingly conceptualized :D

Thank you for this very informative analogy. I have just joined to share my years of writing and found this very helpful. Do let me know if any suggestions for my profile.

Just signed up... Question : So upvotes create income for the poster or commenter.... What insentivises people to upvote? I do it all the time but do people spend time upvoting?

thanks a mil for this post. As an engineer, I completely understand the concept of using a steam turbine as illustration.

This post is wonderful, especially for newbies like myself. Thanks for the clarification and explanation regarding Steem, Steem power and Steem dollars :)

Awesome post. Thank you!

Thats just what i needed thank you !!

I was taught that if you can't explain something succinctly then you probably don't understand it or you are hiding something. This post is VERY confusing. It reads like a typical scam.

I still don't comprehend fully, but I'm getting closer, so thanks.

I've been able to understand more thanks to the discussion here.