Steem Vs Steem POWER Vs SBD - The Three PILLARS Of Steemit

There is always confusion among newbies when it comes to Steem, Steem Power and SBD. Here are some important aspects about the three pillars of Steemit.

SBD stands for Steem Backed Dollars and is the currency in which you are paid when you post on your blog. The payment is made 7 days after the post is published. Ideally SBD is supposed to be the around the same value as the US Dollar. However the last couple of months it has seen a spike in value due to reasons that are not clear. Speculation indicates the possibility of backstage forces pushing up the SBD value and the prediction is that it will fall back to 1 USD in weeks or months.

The next is Steem which is the altcoin that powers Steemit. Most cryptocurrencies do not have any value to back them. They were introduced with the presumption that people will take to them and start using them in place of fiat currency. As you know that has not happened yet and there is little possibility that it will happen in the next few years at least.

Not so with Steem because it is the power behind one of the largest content platforms on the internet. Steemit provides the world with information on a wide variety of topics. So at least it is seen as providing value and can be used more extensively as a form of exchange in the future.

As of now Steem provides financial backing to Steemit. However, later during the year it will also be released for use as Smart Media Tokens that will Steem usage scaling up, thereby increasing the demand. For example if you have a website or forum of your own you can provide incentives to your readers in the form of your own tokens based on Steem. You will be able to replicate the success of Steemit on your own platform by using SMTs. Steem will also see a manifold increase in value.

Steem Power is a measure of influence on Steemit based on the Steem value that a person holds in Steem Power. For example, if you invest in Steem and convert it to Steem Power through an easy process, your influence on Steemit will increase immediately. The value of upvote will go up when your SP increases. So if you have an SP of 1000 you will be 10 times more influential than someone with an SP of 100. Your upvote will also be 10x of the upvote of someone with 100 SP.

There are 3 things you can learn from this post.

Firstly, investing in Steem is worth it of you have money to spare. Put your idle money in the bank to work for you in the form of rising Steem value in the long run and Steem Power on Steemit.

Secondly Steem Power plays a very important role on Steemit. Followers are naturally attracted to those with a high SP. Those who have the highest SP also have the largest number of followers. If you have less SP getting followers will always be a challenge.

Thirdly, SBD is liquid Steemit cash with which you can buy services like upvotes and resteem. The truth is that popularity of posts in Steemit is now driven by upvotes and this looks like the new normal. To use the upvote bots you need some liquidity in the form of SBD. The liquidity also comes in handy if you would like to withdraw the SBD for your personal expenses. Withdrawing Steem cannot be done immediately since it involves a power down which takes place gradually over 13 weeks.

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