Steem vs BTC: Why we could see Steem overtake BTC as the #1 cryptocurrency soon.

in steemit •  3 years ago  (edited)

Everyone have probably heard of bitcoin. It is the first and main cryptocurrency that is listed on the market. It has the largest market capitalization among all cryptocurrencies, and the largest trade volume daily. The next contender(Ethereum) has only around 10% of bitcoin's market cap.

Many people have invested in bitcoin, since it is the most widespread and popular cryptocurrency right now. It is even viewed as a safe haven for investors, to hedge against fiat monetary inflation. And bitcoin has certainly given many early adopters the chance to tell a rags to riches story themselves.

However, in this article I'm going to challenge the notion that bitcoin will the #1 cryptocurrency forever. I'll also state reasons why Steem has a good chance of overtaking bitcoin in a few years time.


1. Most of the things bitcoin is designed to do can be achieved through Steem, and Steem does them better.

Bitcoin is a very basic blockchain technology. Many altcoins have been made to attempt improve on bitcoin, but most of them their owners simply end up running away, it turns into a pump and dump scheme, or it is simply a blatant copy of bitcoin, except for a few parameters.

Steem has all the main functions of bitcoin - a decentralized, trustless payment network. But better.

Steem is designed to have everyone to participate in a community. With bitcoin you can literally live under a rock, but with Steem, you're actively contributing to the community.

I'll talk more about the merits of Steem compared to bitcoin in the below points.

2. Steem is still young, and has more potential to grow.

Steem has only been active for really 2-3 months, and there is only currently around 50,000 total users compared to the 8.5 million users on blockchain.info alone. This leaves us with a lot of room to grow. And with only 50,000 total users, we are already #3 on the cryptocurrency market capitalization list.

It's also a bit like silver and gold. Steem is extremely undervalued at this point in my opinion, just like silver is undervalued to gold. Also, silver has real tangible industrial demands and actual uses, while with gold it's pure speculation.

The google searches for Steem and Steemit are soaring, even though the value of 1 STEEM has fallen due to dilution; while bitcoin's searches purely relies on the price of it. This proves that Steem has intrinsic value and has real life applications as a technology, social media and monetary system, while bitcoin is pure speculation.


3. Steem is more fairly distributed, and less easily manipulated.

This might seem crazy for some of you, but in reality the whales aren't that bad after all. They actually do us all good, by upvoting quality content. Their biggest job is to curate, as it benefits both the Steem community and themselves through curation rewards. They are the ones who make the newbies get more Steempower themselves, and becomes dolphins.

Bitcoin however, is purely there for the people who mined when it was 1 cent per coin. The people who were early adopters will never make new worthwhile additions to the community richer like they do on Steem - they simply get richer and richer from their existing stash, and thus widening the gap between the rich and the poor.

Also, one person can manipulate the bitcoin market if he holds just a few million dollars in bitcoins. However, Steem whales actually cannot do that. Because what they hold is Steempower, and worst case scenario they can only dump 1/104 of their Steempower stash in one week, or 1/728 in one day. That's not much at all, considering trading volume is consistently above 300 BTC daily on Poloniex alone.

4. The Steem platform is designed for stability and everyday commerce.

Bitcoin doesn't really offer any stability, and it can encourages hoarding instead of spending the coin actively in exchange of goods. Thus, many people regard bitcoin as an asset, instead of a real currency.

With Steemdollars however within the Steem platform, this problem is solved. People can now have a trustless, decentralized but still price stable currency that they know won't fluctuate like bitcoin do on a regular basis. And thus a real market with Steem is formed - people start buying and selling goods in exchange for Steemdollars.

And with the constant dilution of Steem, people are encouraged to power up instead of hoarding their Steem and speculating.

5. Everyone can get involved in Steem and earn some themselves, without an investment.

This means that everyone can get involved in it. Not just rich people. Everyone who has access to the internet can have a go at Steem and see how it works. No risk involved, no strings attached. It's as simple as that - people have a chance to experiment with the network before deciding for themselves whether they would like to take it up or not, and thus having a larger chance of attracting more users, and getting more value into the system.

6. Steem gives you interest!

One of the most important part of a working decentralized banking system is knowing that you're rewarded for holding the tokens. Steem offers interest on both Steemdollars and Steempower. Bitcoin obviously doesn't, and you would like to grow your bitcoins, then you'd have to lend it out to an interested party - through a mediator such as Loanbase. Not so decentralized after all, huh.

7. Bitcoin has negative associations - Steem doesn't.

Bitcoin has been associated with many negative things - and will continued to be associated with negative things in the future. From illicit drugs to child pornography, you can literally get anything from the dark web, which pretty much only accepts bitcoin as its payment method. I support freedom of choice, and a free market, however for many average citizens they think that bitcoin is immoral simply because of the dark net associations. My friends in particular stay away from bitcoin for this reason, thinking that the police will track them down.

Steem can solve this problem, and erase the image of a drug cartel from the face of cryptocurrencies.

8. More females are joining Steem than any other cryptocurrencies.

An interesting point to raise about Steem is that if you take a look at the trending pages, women are actually getting paid just as well as men in many cases. Also women are stepping up and constantly contributing to the community - and getting paid for their contributions. This is also because Steem is relevant to them as social media and easier to understand than other cryptocurrencies, which I'll cover later on.

Obviously, there is still so inevitable inequalities, but I believe that in future, when Steem goes mainstream, there will be almost perfect balance between male and female rewards.

9. Steem founders are publicly known.

@ned and @dan are publicly identified as Steem's founders. They don't cover themselves up with a pseudonym like Satoshi Nakamoto, the founder of bitcoin did.

Again, the general public isn't comfortable with trusting a person who is completely anonymous - and holding 1 million out of 15 million coins in existence. He can wreck his own invention if he wanted to any day by dumping all his bitcoin stash.

Having active founders also mean that we get more technical support, and the community runs smoother in general.

10. Steem is easy to understand.

Steemit does a great job to bring Steem technology to life. Unlike other cryptocurrencies, Steem is surprisingly easy to understand, as proven by the amount of women who has a Steem account, as opposed to the amount of women who have a bitcoin wallet.

As I said in my previous posts - understanding Steem only took me personally a few hours to understand. And I could explain it very well to my friends immediately after I learned what it truly was.


Conclusion

I am very excited about Steem. I believe that it will simply be a matter of time before Steem overtakes bitcoin as the number 1 cryptocurrency, simply because it has more intrinsic value and worth.

But in order for that to happen, we'll have to let more people know about this amazing technology. What you can do to help this happen faster is to:

1. Tell your friends and family about Steem.
2. Don't just tell them, explain to them how it works.
3. Keep on participating in the Steem community. Your voice is worth something, and it adds value to the community as well.
4. Upvote good content, so they can get noticed, and in turn generate more interest in Steem.

I believe in a brighter and better future through Steem.

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  ·  2 years ago (edited)

Very interesting, and I hope ( and think ) that the author is right.
It is now 26th of januari 2018 and the price of Steem is now around 6.04 USD, but Market Cap is on 25th place, while bitcoin still nr 1, followed by Ethereum.

I looked it up on marketcap: on januari the 26th of 2017 the price of steem was 0.14 USD.
This means that in one year steem is valued 43 times higher! Or a growth of 4300%!

This is incredible and although the value will have its ups and downs, the fact that there is underlying value in the value of the content that contributers provide, make it much more "valuable than things like bitcoin...

That is why I believe in the platform.
Besides, I find it much more interesting than Facebook and the likes :-)

The content here on Steemit, or Busy.org for that matter, is so varied and diverse; everyone can find things of interest and contribute / discuss, connect with people on their fields of interest.

I allready connected with a lot of interesting people who are publishing about art, design, music in a very respectfull way.
We learn from each other and the world is full with people who like to share their knowledge and expertise and ideas. The whole process of writing / publishing is sometimes difficult but also very rewarding. You can learn a lot from this process itself.

This is rather unique esp. compared to Facebook which is just full of ego oriented "selfies" comming and going....

I think we all hope here that you are right in your analysis ! I think your points are well made and valid !! Time will tell i guess and our own investment and commitment to this platform of exchange !! im here for this reason !! Steem On !! ; - )

Steemit, Openbazaar and Kim DotCom introducing Bitcoin capabilities to non-crypto masses. It's good for entire industry, there is no fierce competition. Bitcoin and Steemit have much space to grow together :)

Syscoin Too! (Partners With Microsoft Azure) Their Blockmarket Trumps Openbazaar http://syscoin.org/syscoin-2-0-vs-openbazaar-comparison/

Steemit and Bitcoin will run side by side both with a different purpose. Bitcoin will be used to make payments. Steem will be used as social network power. I don't expect Steem will take over Bitcoin for payments.

I think it will overtake Bitcoin for Payments. Merchants do not have to sell it instantly like Bitcoin through BitPay, paying commissions... Also waiting 1 hour at checkout for 6 confirmations is not really practical in a supermarket before being able to leave with your groceries... Ahh and if your commission was not high enough, perhaps you have to wait 4 hours for Bitcoin to get included in a block. Steem has 3 second blocks and NO commissions...

You really do not think that Bitcoin is shitty for payments??

Bitcoin is slow weak and retarded. Lots of counter party risk if one guy can completely crash the market

Well we should give bitcoin some credit. Without there would be no steemit and maybe not even an blockhain at all.

crazy going over these old messages! anyone reember that coindesk article about ho steem could overtake bitcoin when the hype was strong last summr?

POsts like this are a great example of why steem has so little credibility right now as a currency.

Steemit has the potential to become something really great. But I'm not writing off BTC that easily.

I totally disagree with the 7th point you're trying to make. Every currency, not only cryptocurrency can and will be used for illegal activities. The criminals are using BTC right now because it's worth so much and every other currency is tied to it on the exchanges. Also there is a widespread adoption of it.

The moment a different currency takes over from BTC (which I don't see happening soon) criminals will switch to that currency instead. Criminal association hasn't happened to steemit yet as far as I know but that doesn't prevent it from happening in the future. What will the judgement be at that point? We will have to see.

Very good analysis. I also believe in Steemit for the basic reason that the rest of social media have become old news. Steemit is simply more efficient. Sometimes, this is all that it takes to take over.

Great post jholdsworthy.. I like the interest point. I don't see bitcoin given you the great return on your SteemDollars or anything like it.

You could consider your SteemDollars as a savings account; getting a better interest rate than any bank account. And consider your SteemPower as a 2 year annuity.

If this continues to get out and more people find out about it. Your points here will definitely drive Steemit to a new level and get noticed.

You have a new follower as well.....

Do you really think gold has no uses? https://en.wikipedia.org/wiki/Gold#Modern_applications

Gold is in my opinion not a speculation (btw). It´s rather an insurance.

That is a good thought, because some people did Not have direction on there own.

Fundamentally, all insurance is speculation; the purchaser is gambling that their cost for maintaining insurance will be less than what it will pay out (plus any value from peace of mind), while the seller is gambling that their income from the sale will tend to exceed their cost from payout.

So if buying gold (or any other investment not tied to a given currency) buys you something of intangible value (peace of mind), go for it. But don't assume it's not a gamble.

  ·  2 years ago (edited)

Steemit is really something huge for the digital world and it deserves our support!!! New type of social network in the spirit of crypto era. Let's hope soon sites like facebook and twitter to follow their concept so we could get payed for our lasted time ;D

Thanks for the analysis and indeed it is exciting.
Under point six you make the observation that more females are entering this type of crypto. I might add that I see Steemit as an easy entry for many groups including Baby Boomers like myself. In my last. Blog post proved to myself and others that I could make and spend Steem Dollars with almost no prior knowledge. The barrier to entry here is extremely low!
Upvotes and followed!

Interesting analysis.

Great article. I am new to steem and I already see a big potential in it. Its hard to say that it will overtake Bitcoin but it can definitely grow big and be one of the top cryptocurrancies. Bitcoin has a few years of advantage and a great name so its not going to go down so easily but it has negative sites on its blockchain like transaction time and numbers of transaction per day.

Steem is doing something great and different that's why I am starting to get involved with it and I hope I can contribute to it.

Can we make Steem skyrocket? I think I have an idea. First, we need to raise demand. (I've said this like 5 times, just read my post on why). Secondly, we need to market this and increase its users.

Nope, nope not going to happen impossible.

This is a very essential analysis to this website. From newbies to those who have been online for many months now, thinking through these things is what is going to increase confidence in the platform.

It is a strong possibility, network effect, and such, STEEMIT can really become mainstream very fast. Bitcoin lacks the killer app, STEEMIT is the one!

Here's to the success of STEEM and Steemers!
I hope you are correct about steem overtaking BTC, but many have tried and fallen to the wayside. It will be an uphill battle, but i'm in it to win it!

So Steem is more like a real currency (with interest etc) and Bitcoin is a store of value like gold? :)

im new to the idea of steem and this platform so im not sure if i have anything to offer but i can certainly see it has potential .i see bitcoin more as a nest egg ,like buying a faberge egg and less of a payment method ,so there a definite need for this .being a payment method and a way you can invest without the need to pay cash into bank accounts appeals to my paranoid nature

"Steem is more fairly distributed" true, but not true.

Steemit should have done a crowdsale of the initial distribution of steem. What we have now is a bunch of "minnows" trying to tickle the sweet spots of the "whales" in hopes of them clicking an up arrow. Seems kinda weird. Oh well, at least there is good content on steemit!

Good article my only comment would be that it over looks one of the most important aspects in this game and that is liquidity. It will be interesting to see if the steem platform can generate the liquidity it will need to go mainstream.

You bring up some compelling points. I agree with most, however it may be some time before Steem is more expensive than Bitcoin. In the meantime, I am happy to invest into it all the profits I make off the other coins!

Wonder how people are looking at this article now as almost a year has past since its post?
I think the future of Steem is in the hand of the public. It has to be made accessible for young to old. Like Facebook has become, first only millennials were using Facebook, now even grandmothers are using it. I didn´t knew about Steem until I was getting interest in crypto currency, this shouldn´t be the case. Maybe further development and time will make this happen.

Interesting blog. I was about to post a similair post. The price of a coin should depend on the quality of the product, the team behind it, if proffesional investors believe in it, and a lot more facets. Does anyone know about: https://www.coincheckup.com This site is really helpful in my coin research. I don't know any other sites with so much indepth analysis. Check for example: https://www.coincheckup.com/coins/Bitcoin#analysis For a complete Bitcoin Analysis

Does this still hold today?

I don't believe Steem will become a mass movement until a Steem GUI is fully developed and implemented. Not until we had email and browsers did the internet flourish. All the techies in the world writing in DOS would never have moved the internet to what it is today.

What do you think devs and third parties are doing right right now ? This will come very very soon !

Looks like you are starting to be proven to be right!

Not going to happen. Most Steem Dollars are going right back into the Bitcoin base line. If anything Steemit will bolster Bitcoin even more so if it continues to succeed.

Because it is relatively new, exchange sites like coinbase are not letting you sell Steem or SBD for USD or other 'real world' currencies - yet. It could very easily happen in the future though if Steem gets big enough.

its been a year and we havemade progress on this front, but its not realy needed! i enjoy my bitcoin and the bitcoin we sell our steem for only makes us money! Steem for USD just brings in mo fiat mo problms BUT i know how important it is to the point that i tried making posts saying i would help people convert steem for fiat but when someoen actually contacte dme offering to transfer moneyinto my bank account for steem i didnt have the logistics to do it and it was just fuckin messy i didnt wanna be repsonsibel for someones money getting shut down in a bank account i would have to just open afte rthey deem it :"susipiciuous" and its too messy with banks! if there was some way to just have someone meet cash for small amountsof steem it coudl work, like localsteem.com i regsitered localaltcoins.co for this reason, but yeah i realize in a decentralized system people ave to make theirown projects an dgroups i should be excited that this is stills omething we can work on and complete!

nice info bro i wil vote for ya at witnis"D

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The growing rate of steemit is already faster than that of Twitter and Reddit when they were at this stage! The mobile app is coming soon, fingers crossed peep!

Making money is quite competitive these days..