The difference between Steem, Steem Power and SteemDollar
Many new users on STeemit want to know the difference between the Steem, Steem Power and Steem Dollar. Here a comprehensive explaination of the 3.
Steem: This is the currency that powers Steemit. It is a cryptocurrency traded on the coin market like bitcoin and others. When your earnings for any post is paid out, you receive a protion of it as Steem. Steem is liquid. This simply means that you can exchange it for other coins like bitcoin or convert it to your local currency. Like all cryptocurrencies, the value of Steem is not stable. It goes up or down depending on coin market conditions at any given time.
Steem Power: A portion of your earnings are paid as Steem Power. Steem Power which is derived from Steem, determines the weight of your account and your influence on the platform. For example, when you upvote a post, how much the post earns is determined by the amount of Steem Power you have. Also, when money is shared to all those that voted for a post, how much you earn is determined by the Steem Power too. The bigger your Steem Power, the bigger your votes, earnings and influence on the platform. Because Steem determines your influence on the network, to withdraw all your Steem Power takes 13 weeks. That means if you have 1000 Steem Power and you want to withdraw all, this money will be divided by 13 and paid to you every week till the 13 weeks are complete. To withdraw your Steem Power is called Powering Down.
Steem-Based Dollar(SBD): Cryptocurrencies are usually volatile in nature. That is, their value is not stable. They go up and down frequently depending on market conditions. SBD was designed to make the value of Steem a bit more stable. So the value of SBD is pegged to be or close $1 especially when the value of Steem is less than $1. SBD is a currency of its own and can be traded on the open market.
So in conclusion, when your posts pays out, your receive some as Steem, Steem Power and SBD. Steem and SBD can be traded, exchanged to physical cash or be transfered to another user. Steem Power takes 13 weeks to be withdrawn or powered down.
Dear @focusnow
Interesting read. I was often wondering if in current days anyone is actually still using SBD? I'm not sure what SBD could be used for (except that it can be considered so called 'stable coin').
Upvoted and resteemed.
Yours,
Piotr
Sure its so-called stable. Ofcourse we all know how stable it is now. Thanks @crypto.piotr for coming around.
Greetings friend @focusnow.
Thanks to @project.hope for making these valuable publications known.
This article will always be necessary and useful for all of us who live in Steemit and throughout the steem ecosystem.
I would add to the SteemPower theme that this can also be increased by buying steem with fiat or with another cryptocurrency.
Steempower can be delegated to another user. This is one of the actions that I consider most valuable and noble (when done in good will) within the steem community.
Your friend, Juan.
Sure thanks for your contributions. I am making a post on ways to increase SP.
Fantastic!
I will be grateful if you invite me to read it.
Congratulations friend @focusnow, very clear explanation!
This is a very helpful and informative post! Thank you for taking the time to share.
Posted using Partiko Android
Hello! I find your post valuable for the wafrica community! Thanks for the great post! We encourage and support quality contents and projects from the West African region.
Do you have a suggestion, concern or want to appear as a guest author on WAfrica, join our discord server and discuss with a member of our curation team.
Don't forget to join us every Sunday by 20:30GMT for our Sunday WAFRO party on our discord channel. Thank you.
@focusnow , so is SBD a stable coin, how is it a stable coin, is it pegged to something?...
and can you tell us more. Like how we can actually withdraw steem from the platform?. I know it vaguely but not clear, it would be helpful for me.
Also, when you power up, immdiately does your steem power go up or does it take time like weeks for full power up. And the payouts from each post they are distributed into 3 is it - Steem, steem power and steem dollars?. And how much time does it take for the payouts from an article or post to be distributed into your wallet?.
also tag @steemleo... you can put upto 12 tags now. You can earn other tokens too in steem - https://steem-engine.com , check you have got airdropped any new tokens related to your content.
A good post. I believe there was something with the value of Steem dollar. It is not allowed to be less as 1$ or so? If so it is better to change it into Steem first before you transfer it.
👍💕
Posted using Partiko Android
Helpful for beginners, gonna resteem this to my Steem Community.
Posted using Partiko iOS