Steem (STEEM) is a decentralized cryptocurrency running on the Steem blockchain, which powers the Steemit social media and blogging platform. Unlike Bitcoin or Ethereum, STEEM is not mineable; most newly minted tokens go into a reward fund that pays users for contributing content. STEEM also serves as a medium for peer-to-peer digital payments. With a market cap of roughly $1.5 billion, STEEM ranks among the top 25 cryptocurrencies, handling around $50 million in daily trading volume on exchanges like Bittrex and Poloniex.
What is Steemit?
Founded in 2016 by Ned Scott and Dan Larimer, Steemit is a censorship-resistant social network reminiscent of Reddit. Users earn cryptocurrency rewards for creating and curating content. The platform has amassed over 500,000 users in under two years, especially popular in developing countries where users value monetary compensation for their contributions.
STEEM vs Steem Power vs Steem Dollars
Steemit wallets contain three distinct digital assets: Steem (STEEM), Steem Power (SP), and Steem Dollars (SBD). STEEM is the liquid token, convertible to fiat on exchanges, and can be "powered up" into SP. Steem Power is not tradable on exchanges; it grants holders influence over content rewards and a proportional share of the Steem reward pool. Steem Dollars are IOUs redeemable for $1 worth of STEEM, designed to stabilize internal exchange rates. SBD has a market cap of about $50 million and daily volume of $25 million.
Should You Invest in STEEM?
The value of STEEM is tightly linked to Steemit's success. Despite some critics labeling it a Ponzi scheme, Steemit has onboarded over half a million users, demonstrating the potential of an incentivized social network. According to Block'tivity, Steem's blockchain shows the highest activity score, processing more transactions than Bitcoin and Ethereum combined. If Steemit maintains its leadership as the go-to get-paid-to-post platform and becomes a reputable global social network, STEEM tokens could multiply in value. However, competition from giants like Facebook, which could adopt similar reward models, is a real threat. Investing in STEEM is high-risk but carries upside as the platform leads a popular niche. Buying STEEM is a bet on Steemit's future success.