What is Steem cryptocurrency

Is it worth investing in a new coin founded by a social network

The cryptocurrency system in the form of a social network is developing quite successfully and attracting the attention of investors. We will tell you what Steem cryptocurrency is, its advantages and disadvantages, and also figure out whether it is worth buying Steem cryptocurrency.

How Steem Works

Steem cryptocurrency appeared in 2016. It was mainly created by Ned Scott and Daniel Larimer. Larimer at one time was directly involved in the creation of another popular crypto project Bitshares, which is included in the TOP-50 largest crypto platforms in terms of capitalization. The main Steem platform, called Steemit, are several social networks based on the Steem blockchain.

The originality of the crypto platform lies in the fact that Steem is, in fact, a social network within which any participant can receive a reward for creating new content. You can write texts, record videos, or post other materials useful to the community. At the same time, the level of earnings of participants in the crypto network directly depends on the quality of the generated information content.

Users vote by creating a hierarchy of content. The more votes a post gets, the more it will be rewarded. The platform also uses a system of downvotes, giving members more flexibility in terms of rankings. Steemit is built meritocratically, meaning users who hold more currency can cast votes with more influence.

Content must be unique and interesting to be voted for. In addition, it must be written in perfect English. The blockchain network accepts only quality materials that you can pay for.

If a post manages to collect more than ten thousand Steem dollars, the user who created it receives a reward of $7 thousand, and such posts are not at all uncommon. Users who write comments can potentially earn $700 on one of them.

There is no spam, mailings, even bots that distribute ads on the site. But at the same time, the project manages to attract new customers and improve the quality of the content offered.

The level of network security is also not much inferior to other cryptocurrencies. It is provided with the ability to identify users. Simply put, only those people who have logged into the network from their Facebook or Gmail accounts can use the benefits of the site. In this way, they want to avoid the invasion of bots on the site.

Transaction speed is up to 3 seconds. It takes the same amount of time to form a new block. The network is still lightly loaded, so transactions can go even faster than planned.

Who Invented Steem

Steem was founded by Ned Scott and Daniel Larimer. Steem CEO and founder Ned Scott graduated from university in 2012 and after three years of analyzing the food industry, he dramatically changed the direction of his development, deciding to radically change the concept of the media space. In this difficult task, he is actively assisted by co-founder Daniel Larimer, a software engineer and early bitcoin adapter.

Before creating Steemit, Daniel founded Bitshares, a decentralized exchange for all kinds of digital assets. After the launch of the Steem blockchain, Larimer retired in March 2017 and decided to work on his new project, a competitor to Ehereum EOS.

The founders were able to attract talented developers with their revolutionary idea and put together a strong team of five people.

How Steem mining works
The system of remuneration for users of the cryptoplatform is represented by two tokens.

Steem dollars are units used to reward users for posting and viewing content. Each Steem dollar represents a Steem equivalent to $1. Steem dollars (or SMD) were created so that users would not be affected if the price of Steem changed. Steem dollars are growing in value by 10% annually.

Steem Power, or SP, is a token that shows how much power you have on the Steemit platform. When users have a lot of SP, their votes carry more weight. Without SP, voting on the platform is not possible. Increasing SP increases the importance of the voice, while decreasing it weakens it. Moreover, you can exchange SP for Steem. True, such a profitable exchange can be made no earlier than after two years of being in the cryptosystem.

Steem Cryptocurrency Review: Key Benefits

The main advantage is the uniqueness of the idea and, as a result, the constantly growing popularity of the resource. The Steemit project has the status of the most popular and sought-after social network based on blockchain technologies. At the same time, it is still difficult to talk about serious competition with the same Facebook or Reddit.

Another significant plus is that the Steem coin is available for mining on a video card without the use of special ASIC equipment. Moreover, the Steem cryptocurrency has a fixed lower threshold. This makes her immune to shocks. Such protection is not used in any other cryptocurrency.

Moreover, interest is charged on Steem Power – 15% per annum. This is also a rarity for cryptocurrency projects. Also, this crypto platform is different in that here users can create unique digital tokens based on SMT technology. This concept repeats the idea of ​​using the ERC-20 protocol to create new crypto coins.

The main disadvantages of Steem

Outside of the parent platform, the Steem cryptocurrency has no value. In addition, the Steem coin is not backed by anything, which in the future may lead to a sharp collapse in the exchange rate of the token.

This factor also has a negative impact on the activity of potential investors considering promising cryptocurrencies for inclusion in their asset portfolio.

It raises doubts among experts and not the most thoughtful mining scheme, which limits the potential of the coin in terms of expanding the user audience interested in mining it.

Crypto market analysts also note a strange algorithm for evaluating content posted by site users. Even high-quality content may turn out to be useless in the opinion of the cryptosystem just because of the presence of negative reviews and negative ratings. As a result, even the slightest prospects for monetizing useful content become unclear.

In addition, the leading players in the crypto market doubt that, despite the absence of direct competitors based on the blockchain, the platform is unlikely to be able to compete with traditional social networks that have millions of user audiences and offer alternative methods of content monetization.

Where to buy Steem

Cryptocurrency is easy enough to exchange for bitcoin or ether, but difficult to sell for fiat money. This can only be done on a few small exchanges.

You can buy Steem tokens on the largest stock exchanges Bittrex and Poloniex. Although it should be noted that this cryptocurrency is also popular on other exchanges.

The second way is to create and post unique content on a social network or vote by leaving comments. The prize is a Steem coin. The more active the work in the social network is, the more profit.

Where to store Steem
The best solution for storing the cryptocurrency in question is a specialized Steem wallet. You can launch it on the official Steemit website. To do this, simply register. The wallet has a built-in wallet function.

Another good option for storing a token is the eSteem mobile wallet. This resource is specially designed for the mobile interface of the social network itself. It is not as voluminous as the previous two options, but allows you to access all the strategically important functions of the site. With the help of a wallet, you can conduct transactions.

Prospects for the Steem coin

As of the end of August, Steem’s capitalization has reached more than $227 million. At the same time, the expert community is rather reserved in assessing the future prospects of the platform itself – Steem, explaining this fact by a drop in interest in this platform from both users and investors. And this is despite a well-developed and profitable product.

Users complain about the ill-conceived interface of the site and the strange algorithm for evaluating the usefulness of content, which directly affects the income of content producers, which are actually the basis of this social network.

True, if the authors of the site manage to eliminate the shortcomings, as well as obtain the necessary financial instruments for conducting a full-fledged advertising campaign, the prospects for the project will change dramatically.

Forecast for 2022

According to gov.capital, the price of the Steem cryptocurrency could drop by about 43% in a year. The service does not recommend investing in this asset.

The opposite opinion is shared by Wallet Investor. The service defines the Steem token as a good investment for the long term, that is, for 1 year or more. Wallet Investor expects that by the end of 2022, the average value of a cryptocurrency will be $0.3, and the maximum value will be $1.2.

Trading Beats believes that Steem will grow during this year. The service predicts that the average price of a cryptocurrency will be $0.4. The growth trend will continue in 2023.

FAQ

What is Steem Cryptocurrency?

This is the Steem crypto platform token. It resembles a social network where users write posts and comment on them. On the platform, you can create various content: texts, videos, images, and so on. The user is rewarded for its creation.

How does the Steem cryptocurrency work?

Rewarding content depends on its quality. The information must be unique and written in excellent English. The better the content, the more users vote for it. The remuneration of the author depends on the number of votes.

How much can you earn on the platform?

If the post gets more than 10 thousand votes, then the user can receive a reward of $7 thousand. You can also get money for comments.