Steemit is a social networking site like Facebook in many ways but from a user perspective its nothing like Facebook at all when you consider what you get with Steemit and what you give up to Facebook unknowingly...

In this article I will explore why Steemit is on track to expand exponentially and take a bite out of Facebook's user base.

If you want to save time these two ideas are what I base my prediction on : Steemit pays its users in Steem while Facebook gives you advertising and sells your information to the highest bidder.

What is Steemit?

Steemit is a social network that looks and functions a lot like Reddit, but with one HUGE difference: Steemit pays both the content creators when their work gets upvoted, as well as the people who curate the best content on the site by upvoting others work.

On Steemit you can perform many functions that are quite similar to Facebook. For example, you can like (upvote), share (resteem), post and comment.

However it doesn't include a lot of Facebook's baggage. For example as opposed to Facebook, Steemit doesn't collect your personal data in an effort to sell it to the highest bidder or monetize it through an advertising platform. Facebook pays nothing as opposed to Steemit where users actually get paid for contributing content (posts) and comments if other users approve of your ideas and opinions.

Steemit has 3 cryptocurrencies and they are the following:

1.) STEEM

The STEEM token is the network's base token. It is traded on multiple cryptocurrency exchanges and markets. Its market value determines the value of the pool of rewards paid by Steem. Its value also backs the value of Steem Dollars.
STEEM Power

2.) STEEM Power (commonly abbreviated SP)

STEEM that has been entered into a smart contract and represents the amount of influence an account has compared to the rest of the network. The more STEEM Power an account has, the higher influence its vote has on posts or comments. STEEM Power also determines an account's weight for witness approval voting.

3.) Steem Dollar or Steem Based Dollar (abbreviated SBD)

An asset intended to be pegged to the United States dollar. Steem Dollars can be traded at cryptocurrency exchanges, and used for payments for goods and services.

Here are some points to think about when you consider Facebook's business model:

If there is no product, you are the product

Facebook is notorious for collecting data from its user base and selling that data to any other interested party. In addition they have no problems bombarding it's user base with advertisements.

Censorship

Facebook has been caught many times in the act of censorship whether it be for political or economic reasons.

Extortion

Facebook has complete control of who sees your posts and who doesn't. If you want a wider audience you have to pay for promotion. Its really that simple.

Why do I think Steemit will steadily chip away at Facebook's user base?

The benefits that Steemit offers are numerous and include:

1.) Getting paid to write and contribute.

2.) Using your capital to support others you believe in and actually help them get paid.

3.) Doing activities that you would normally do on Facebook while not having to worry about Steemit selling your personal information.

4.) Expressing yourself on a blockchain on a platform with a very low possibility of censorship.

Still don't believe I know what I'm talking about... Have a look at a few snippets from Wikipedia's Steemit page:

As of May 2017, there are more than 170,000 Steem accounts. After an initial public beta for which no payments were made, the hard fork on July 4th, 2016, saw $1,300,000 of STEEM and Steem Dollars paid out to Steemit users.[8]

The exchange rate of STEEM compared to Bitcoin rose continuously during July 2016, peaking at a price of over 4 US dollars.[4] In most of July 2016, Steem had the third largest market capitalization of all cryptocurrencies monitored by the website Coinmarketcap.com, reaching a first notable peak at July 20th, with about 405 million US dollars.[9] As of May 25th, 2016, its market cap is 258 million US dollars.

Steemit was described as a novel and "disruptive blockchain-based media community" by Adam Hayes (Investopedia) in July 2016.[4] It got media coverage in cryptocurrency- and business-related media.[10][11] Author Neil Strauss, a Steemit member, wrote an article for Rolling Stone calling its reward distribution "particularly clever" and echoing the sentiment of its disruptive potential.[12]

Analyze the Data

Steemit's the first social networking platform to operate on a blockchain and reward users with cryptocurrency.

Steemit has over 170,000 accounts (this number is small compared to the number of Facebook users and customers can always operate an account on both platforms if they'd prefer to continue using Facebook for some of its features).

Techblogger Wrap Up

Based on the numbers and the research I've done comparing Facebook to Steemit I've come to the conclusion that although Facebook will continue to be adopted and used by the masses, Steemit will grow at a faster rate because of its numerous advantages, features and benefits when compared to Facebook.

I had never even heard of Steemit before I became interested in trading cryptocurrencies and even now when I ask people about Steemit, most of my friends had never heard of it before I twisted their arm to make an account.

Facebook is outdated and its model leaves a lot to be desired when it comes to rewarding activity fairly. It demands everything (TOS) and gives nothing (except targeted advertising, expecting you to buy something while leveraging your personal information to get as close as possible targeting you for products and services you are likely interested in)

For all these reasons, I've determined that Facebook's days are numbered and Steemit's are just beginning.

Lets get a conversation going here, please leave thoughts and comments below.

Thanks for reading!

Sources:

Steemit - Wikipedia

@freddy008 - 'Steemit vs Facebook'