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Steem (STEEM) - a cryptocurrency not only for bloggers

created Michał SielskiJune 3 2020

The Steem network and cryptocurrency make it easy to earn money by writing blogs and creating other creations. The higher the community rating, the more you earn from the popularity of your activities. However, there is no shortage of controversy around it, because the grade can be… bought.

We continue the Forex Club portal cycle, in which we describe the largest, most popular, the most interesting and the most controversial cryptocurrency projects in the world. Today it's time for Steem, who meets at least three conditions: he is becoming more and more popular, has interesting assumptions and fate, and a large group of people who praise him or criticize him.

How does Steem work?

Daniel Larimer, creator of BitShares and Steem.

The eponymous network is a blockchain platform with its own cryptocurrency, or even three. With its help, network users receive remuneration for the content they create: writing blogs, recording videos or taking photos. The profit depends on their "reputation" in the network, which is expressed in the number of Steem Power tokens. So you can't set prices for your works yourself - they depend on how others judge them. Thanks to this, the highest valuation is simply what people like. The only reviewers are the audience, there are no intermediaries, top-down publishers, etc. Everyone has the same opportunities to reach users and the one they rate the highest will earn the most.

The network was created by Daniel Larimer, who previously worked on the platform BitShares. This is where the Graphene technology that he designed came from.

How Steem was made

The network has been operating since March 2016. Currently, her most popular service is the Steemit Inc. blogging platform. Originally it was supposed to be an insurance platform, but social media quickly dominated it. Mainly due to the lack of censorship and even moderation. Every user from the beginning could write on it what they like, so there was no shortage of bloggers.

However, there have been controversies around the network. When the vast majority of blockchain projects obtained funds for development through ICO, Steem focused on premining: when the network started, some cryptocurrency units simply appeared in circulation. This met with criticism of part of the environment, because of course some units were awarded to its creators.

The network and three cryptocurrencies

The best-known cryptocurrency on the network is STEEM, but Steem Dollar (SBD) and Steem Power (SP) tokens also work within it. The main cryptocurrency is inflationary, and the inflation rate drops every 12 months by 0,005% to 0,01% per annum. Steem cryptocurrency determines the capitalization of the entire network, and Steem Dollar is supposed to theoretically map the USD price and act as a stable coin. However, this does not quite come out, because despite the fact that it is available on only a few cryptocurrency exchanges, it is subject to market fluctuations. The price record is as much as USD 12.

In SBD, the creators from the network receive remuneration: at least half goes to SP, the rest to SBD. Only after that can they be exchanged for a Steem, which obviously causes price movements on all three units. "Dollar" tokens are liquidated when exchanged for a "main" token.

Steem Power (SP) is a token that cannot be traded. It determines the aforementioned reputation, which determines the level of remuneration for the content created. The reputation level also helps to create interest in other content: by rating and commenting, we can expose or hide it, and the higher the reputation level, the more the rating is worth. The problem is that Steem Power is not only earned through the ratings of others, but you can also buy it with the main cryptocurrency - in a 1: 1 ratio. So, in a way, it is a contradiction of decentralization, because thanks to money you can become an important person in the network, regardless of how others judge it.

Steem quotes

Currently, cryptocurrency is listed on 15 cryptocurrency exchanges. As at June 03.06.2020, 367, there are almost 0,20 million units in circulation at a price of USD 74, which gives capitalization in excess of USD 3 million. The peak of quotations took place on January 2018, 9,31, when you had to pay USD XNUMX for each unit.