Steem Coin: A Smart Investment Decision?

Steem is a cryptocurrency with a difference. It is tethered to the social media platform Steemit, where users can earn Steem tokens by posting content that receives upvotes. The more Steem Power a user has, the greater their influence on post payouts and curation rewards. This has led to some users questioning whether Steem is a good investment. Some have pointed out that the token is subject to high inflation, which could lead to losses for investors. Others argue that Steem Power, which is earned by holding Steem, protects against inflation and provides voting power on the platform. The success of Steem as a cryptocurrency will likely depend on the success of the Steemit platform, and it remains to be seen whether it can compete with other social media platforms.

Steem's value is tied to its social media platform Steemit

Steem is a community-focused blockchain that provides an instant earning opportunity for its users. The protocol is designed to offer an earning opportunity for customers based on their value to the network. It is designed to provide users with a platform where they can post curated content online and get paid in cryptocurrency.

The Steem blockchain's first app, Steemit, was launched on July 4, 2016. The app is similar to other social network apps except that it is based on blockchain technology, making it a decentralised and non-custodial app. The network is without the common data-related problems faced by traditional social platforms.

Steem is guided by the principle that those who contribute to a venture should be paid by the owners, just like startups do by allocating shares during funding rounds. Another core belief is to serve its community members by rendering various financial services and opportunities.

Steem is a unique cryptocurrency in that it is tethered to the social media platform Steemit. This is what makes it stand out from other cryptos such as gold-backed cryptos, rice-backed crypto, or marijuana-backed crypto.

Steemit is addictive. It becomes a competition with oneself. Success is measured by the number of followers, upvotes, and rewards. Every post is somewhat of a roulette wheel spin. If you don't do well, you strategize for the next post. It is mentally stimulating and then once posted, you wait for the results. You constantly check on the progress of the post. It is a very engaging activity that also leads to the discovery of potential within the person that they may have otherwise never considered possible. Thus, its positive addictive value is so great that even millionaires will take pride and experience satisfaction in earning a few SBD per post on the platform.

Steemit's success will determine the value of Steem

Steemit is a blockchain-based blogging and social media website where users can earn the cryptocurrency STEEM for publishing and curating content. Users can also be rewarded with STEEM based on their comments. The value of STEEM is tied to the success of Steemit, and there are a few factors that will determine Steemit's success.

Firstly, Steemit's ability to attract users and retain them on the platform will be crucial. In the early days of Steemit, there was a lot of low-quality content, plagiarism, and a lack of diverse categories and communities. However, over time, the platform has improved, and there are now more talented people creating great content, particularly in the photography and writing sections. The platform's ability to continue attracting and retaining high-quality content creators will be essential for its long-term success.

Secondly, Steemit's ability to monetise its user base and content will be a key factor in its success. One potential revenue stream for Steemit is advertising. As the platform gains more users and engagement, it will become more attractive to advertisers, which could provide a significant source of income. Additionally, Steemit's unique system of SP, SBD, and STEEM regulates itself and protects against great volatility, which could make it a more stable and attractive platform for investors and advertisers.

Thirdly, Steemit's ability to innovate and adapt to the changing landscape of social media and blockchain technology will impact its success. The platform has already undergone several hard forks, including the creation of the HIVE blockchain in 2020, which introduced new features and improved the platform. Continuing to innovate and stay ahead of the competition will be crucial for Steemit's long-term viability.

Finally, Steemit's ability to maintain the security and integrity of its platform will be vital. In the early days of Steemit, there were reports of hacking incidents and account compromises, which could deter users and investors. Ensuring the security and safety of user data and assets will be essential for maintaining trust and confidence in the platform.

In conclusion, the success of Steemit will depend on a combination of factors, including user engagement and retention, monetisation strategies, innovation and adaptability, and security and integrity. The value of STEEM is inherently linked to the success of Steemit, and if the platform can continue to improve and adapt to the changing landscape, it may have a bright future ahead.

Steem's economics are questionable

Steem is a cryptocurrency tethered to the social media platform Steemit. Users can obtain Steem by posting content on Steemit. When users publish popular content, as measured by upvotes, they receive Steem tokens. The more Steem Power a user has, the more influence they have on post payouts and curation rewards.

However, there are several concerns about Steem's economics. One is the high inflation rate, which was initially 100% yearly but has since decreased. This means that each Steem token will lose half of its value every year, assuming the market cap remains constant. This creates a strong disincentive for potential investors.

Another concern is the lack of intrinsic value in owning Steem. Apart from earning more Steem by posting and curating content, there doesn't seem to be a compelling reason to invest in it. This has led some to speculate that the current price increase is a bubble resulting from pure speculation.

Additionally, there are doubts about the sustainability of Steem's business model. Some market observers have expressed concerns that Steem might be a pump-and-dump scam or a Ponzi scheme, where early adopters will cash out on a major pump in price, leaving new investors with worthless tokens.

Furthermore, there are questions about the need for a new currency instead of using existing cryptocurrencies like Bitcoin or Ether. The use of a dollar peg has also been criticised as being expensive and difficult to maintain.

While Steem's unique concept and rapid growth have attracted attention, its long-term sustainability remains uncertain. The success of Steem as a digital currency will likely depend on the success of the Steemit platform and its ability to attract and retain users and developers.

Steem's value will be closely affiliated to its utilitarian value

Steem is a cryptocurrency tethered to the social media platform Steemit, where users can earn Steem tokens by posting content. Users receive tokens when their content is popular, as measured by upvotes. The more Steem Power a user has, the greater their influence on post payouts and curation rewards.

Steem's value will be closely affiliated with its utilitarian value as a social networking and sharing platform. The more people that use Steemit, the more valuable Steem will become. This is because the value of Steem is derived from its use within the Steemit platform. If Steemit becomes a popular platform, then the demand for Steem will increase, driving up the price.

Steem has been described as having a very different risk/reward ratio compared to other cryptocurrencies. It is the only platform where you can earn a currency through your work, and there is a perpetual growth potential for individuals. As a user's Steem Power grows, so does their influence on the platform, which can lead to lucrative payouts.

However, there are some concerns about Steem's value proposition. Some have questioned why a new currency was needed for the platform, rather than using an existing cryptocurrency like Bitcoin or Ether. There are also concerns about Steem's use of a dollar peg, which could be challenging to maintain. Additionally, there is a risk of high inflation, which could devalue Steem over time.

Despite these concerns, Steem's unique approach has helped it rise above the vast majority of cryptocurrencies in terms of market capitalization. Its business model remains untested, but if Steemit becomes a successful platform, it could drive up the value of Steem.

Steem Power could stabilise the currency

Steem Power (SP) is a native currency to the Steemit platform that cannot be traded directly on exchanges. It is one of three cryptocurrencies on the Steem blockchain, the other two being Steem (STEEM) and Steem Dollars (SBD).

Secondly, Steem Power gives users a virtual stake in the future growth of Steemit and the Steem economy, as most of the new currency tokens created are paid out to SP holders. The more Steem Power a user holds, the more they can influence the value of posts and comments. This is because SP gives users stronger voting influence.

Thirdly, Steem Power can be delegated, meaning it can be donated to new users to help them perform actions on Steemit. This could help to stabilise the currency by encouraging new users to join the platform and invest in Steem Power.

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