Why Do The Rewards Pool Get Distributed Via Upvotes? Why Does Steem Get Created & How It Does? Why Is Steem Better Than Bitcoin? These are all great questions. Let’s answer these Steemit Questions and more.
Why is Steem Better Than Bitcoin Or Other Crypto Currencies? The main reason that most think it is better is that there are no transaction fees. Steem is a new kind of digital currency with extreme security. The Steem Currency can easily be purchased and traded internally at the market and through exchanges. The actual value by most people’s standard is that Steem is undervalued and is being sold at a bargain if under $10. Bitcoin is larger and aggressively marketed it is extremely slow. This has been why new crypto currencies have been able to gain much respect in recent years due to their speed and performance when compared to Bitcoin. Steem is almost instantly transferred.
Many have asked about the rewards pool. Why it is set-up the way that it is? The simplest answer is that instead of difficult mining of currency; creating a fixed amount per year that is allocated helps stabilize the digital currency. The Steem Reward Pool is unique in that most of the rewards are distributed to Writers and the amount is determined by the community via upvotes. The reason the rewards are based on upvotes is because the community shares in the rewards pool. If people are just reposting junk content there is no sense in rewarding poor quality work. People are paid essentially for performing work much like someone would be given currency if they were mining. The community determines really how much that the content is worth.
Why did my post not make hundreds worth of rewards like others I see? Many will tell you a hundred different reasons. Let’s be straight forward with this question. There are social groups or classes on Steemit much like in the real world. Hence the minnows, dolphins, whales ranks applied that you will hear about. For the most part people navigate within their social status. Minnows support minnows, dolphins and whales, while dolphins usually support dolphins and whales and whales generally scratch each others back. This isn’t always the case but in general this is what many have observed.
Some posts I have seen with high amounts of upvotes are absolute crap. Why did they get such great rewards? There are a few reasons a post will do this. Sometimes the account is a junk account that a whale uses to post loads of content too then upvotes his own stuff. Once it all pays out he will usually send the money earned back out or all to one account and then cash out.
Other people spend 100 or more SBD on post promotion or promotion up vote services. Some even buy advertising on Facebook or other services to get exposure. It helps to have active followers also. The more the better for sure. Interacting with your followers posts by upvoting and commenting helps build relationships. Joining a network such as https://SteemThat.com helps also. It is easier to do things for a friend than a stranger.
Why does my payout go up or down even when no extra votes have been added? This is mainly because of the price fluctuations of Steem. It could also be due to someone removing an upvote and then adding an upvote back. Sometimes people might upvote a post at 50% and then come back and decide to Upvote the post with a full power upvote! This happens sometimes. Your posts will stop receiving upvotes after 6.5 days. Your payouts will be locked in and when you view your wallet you’ll be able to claim your rewards on the 7th Day!