Steemit, the social network that rewards creators and readers! (Complete Guide)
Steemit, the social network that rewards creators and readers! (Complete Guide)
Steemit is a social media platform where everyone is rewarded for creating or evaluating content. It uses a robust digital currency system, called Steem, one cryptocurrency as Bitcoin with the value based on market and liquidity.
On first impression, you will have many questions in your head, such as: - Who can post? - Where'd the money come from? - How do you earn money?
I'll try to answer them all here! If you have any additional questions, feel free to ask!
So, we have Steem, Steem Power and Steem Dollars. Because?
First of all, we'll talk a little of each. It will not make much sense now, but do not worry, it will later.
steem
This is the digital currency, you can buy in a exchange as Bittrex.com.
is not meant to store value like Bitcoin is, it's just a way to invest in Steem (organization / project). Total Steem doubles every year.
steem Power
Steem (above) can be converted to Steem Power and they will be caught. To convert back to Steem, it takes two years.
(Necessary explanations: how to back Steem conversion process work exactly?)
Why would you do that? Because by keeping Steem Power in your account you will receive a little Steem that is created every second in the form of Steem Power.
90% of Steem recently generated goes straight to those who have Steem power in your account.
10% of Steem recently generated goes to who is contributing posting or evaluating the social network.
When you rate a post, the more Steem Power you have, the more you will be rewarded for generating Steem.
For example, if you see a post with an estimated value of $ 1000:
$ 500 is being paid to users who interacted with him
$ 250 is being paid to the author
$ 250 is being paid to the "Father" or "Grandfather" this post if it exists, if not, will go to the author.
steem Dollars
A stable way to store value (relative to the real world) where each Steem Dollar is worth about $ 1.
Okay, what the point of these 3 things up?
Steem is only a way to facilitate the use of the platform, and to trade for real money in Steem Power or Steem Dollars. No one would like to hold Steem long, because it will lose its value, then you can decide between:
Convert back to real money (USD) and spend as you wish.
Convert to Steem Power, however making the commitment of two years. (Because when you convert Steem to Steem Power you must wait 2 years to convert back)
Convert to Dollars Steem, keeping the value in Steem network (instead of selling it in an Exchange), but also keeping it liquid and can be removed whenever you want.
It may sound complicated but you can think of these possibilities:
I have Steem enough, and I want my USD back and I will not do more of it.
Wow Steem is cool! I really think it's a great reward system for developers and evaluators of content, and I want to commit my money for the next two years with the expectation that it will grow even more and I will be rewarded with this growth.
I like Steem, but I'm not sure I want to commit myself for 2 years. I'll hold it here and when I think better (1) or (2) can I decide between me get real money or invetir the platform.
But the number of Steem doubles every year, so I'll just lose money over time?
The annual fold will cause the devaluation of Steem but not the Steem Power or Steem Dollars.
But it's alright. because (see above) nobody wants to be holding Steem, it's just a way to switch between Steem Power, USD Steem Dollars.
The number of Steem will double every year that could cause the devaluation of 50% per year. (Not that many new people to buy it)
However, every year a reverse 3:32 split 10: 1 will happen (10 Steem become one Steem, effectively resetting the clock on the amount of Steem outstanding).
It sounds complicated, but it is not. For example:
Year 0: 500 Steem
Year 1: 1000 Steem
Year 2: 2000 Steem
Year 3: 4000 Steem
3:32 Year: 5000 Steam (reverse split takes place now, and the number of Steem back to 500 and the process begins again)
(Note that the numbers here are not accurate, they are more comom 500 million to 5000 million Steem, not 500)
Our strange that, what the point of all this if it resets every 3:32 years?
The point is:
The value within the Steem (the Steem Power) is not diluted and forced to fall in the long time because it it will only go through the cycle 500 ~ 5000.
but the value within the Steem can be redistributed among users, and is destribuido for those who are most active and committed to the platform.
The value of Steem is redistributed between:
those who have committed to the Steem Power for 2 years
those who contuibuem posting and evaluating the platform
Complicated. All this results in what?
All things above are for a good reason. With all this, you get the ability to:
You can easily purchase and exchange as a digital currency
You can commit over time, giving stability (so you or many others can NOT go crazy one day and withdraw all money and break the platform)
If you are committed to the long term, you will be rewarded
If you contribute to the platform you recompensadof
So everyone is very motivated to do the very active platform, to keep it stable in terms of value and exchange, and turns it into a huge success if they can, including disclosing to others and encouraging them to participate.
It looks cool, but the Reddit and other platforms are already giants. Why would anyone change?
If you spend your time on Reddit or other social network, contributing content and assessing posts, then at the end of the month you will have a warm feeling knowing that you spent contuindo free for shareholders and employees to Reddit or Facebook can buy carbon fiber for its private yachts and fuel their Bugattis for a month thanks to you. If you spend all your time in Steem you will be rewarded with real money - which is actually a piece of the platform.
The more you compremete and contributes, the more valuable you are to the platform and even more you are rewarded. With the growth you not only have the feeling of warmth, you will have real rewards.
If I want to start, I have to buy Steem or something?
No, you can simply sign up and start contributing posts or reviews.
If you think Steem is a good idea, you can buy Steem and then convert it into Steem Power effectively into the organization and Steem network, but you do not need any of that. You can earn rewards just by registering and contributing as in any other social network.