The Steem cryptocurrency is unique in that it is tethered to the social media platform Steemit, where users can create and publish content and get rewarded with Steem coins. This makes it stand out from other cryptos, which are backed by gold, rice, marijuana, etc. Steemit is based on blockchain technology, which means there is no censorship, no central authority, no downtime, no data vulnerability, and no data abuse. It also allows users to earn a currency through their work, thus incentivizing the creation of better content. The more steempower a user has, the more their influence on post payouts and curation rewards will improve, leading to perpetual growth potential.
However, there are some concerns about Steem as an investment. Firstly, there is a lot of low-quality content on the platform, including plagiarism, stolen videos, and flower pics. Additionally, there is a lack of categories, communities, and personal connections with other users. Another issue is the presence of bots that can be used for spam voting, which Steemit has not taken sufficient measures to address. Finally, the monetization of content may lead to a decrease in the quality of content as users become more focused on financial gain rather than knowledge sharing.
Despite these concerns, some users remain very positive about the potential of Steem as a long-term investment. They believe that the platform will continue to improve and that the price of Steem will increase significantly in the future.
What You'll Learn
Is the STEEM community trustworthy?
The STEEM community is based on the blockchain, which means that it is run in a decentralised manner. This means that there is no censorship, no central authority, no downtime, no data vulnerability, and no data abuse. This is in contrast to centralised social platforms like Facebook, Twitter, etc.
The community is made up of creators and curators. Creators are users who create and publish content online and get rewarded for it. Curators are users who upvote and help evaluate the quality of content. Both creators and curators are rewarded with Steem coins.
The community has been described as "mentally stimulating" and "positive addictive". However, one user has commented that the platform is disappointing, with a lack of original content and an intense amount of porn, plagiarism, stolen videos, and flower pics. Another user has commented that the platform is improving exponentially and is weeding out bad stuff.
In terms of trustworthiness, the website steem.com has an average to a good trust score of 2/5 based on 4 reviews. The website has been deemed safe by DNSFilter and Maltiverse. However, it is worth noting that the website has received mainly negative reviews.
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What is the historical performance of STEEM?
STEEM is the cryptocurrency of Steemit, a blockchain-based social media platform. It was launched in 2016 by Ned Scott and blockchain developer Dan Larimer. The platform is similar to Reddit, where users can create and publish their content online and get rewarded for it. However, Steemit is based on blockchain technology, allowing it to be run in a decentralised manner without censorship, central authority, downtime, data vulnerability, or data abuse.
Steem witnessed a massive surge in its price on 20 July 2016, growing from about $0.27 to $4.34 in a single week. This surge in price made Steem the third most valuable cryptocurrency at the time, with a market capitalisation of $384.5 million, only behind Bitcoin and Ethereum. However, Steem was unable to sustain this high price for long, and it fell to $0.12 in November 2016.
Steem then touched a new high of $7.28 in January 2018, a return of about 4,853% compared to its price in January 2017. Like most other cryptocurrencies, the price of Steem crashed in Q1 2018, and it has not seen a significant increase since then, currently trading at around $0.25.
Steem's price typically goes down because new Steem coins are added every day to reward creators and curators, and these users tend to cash out their Steem. This is one of the reasons for the creation of Steem Dollars and Steem Power in addition to Steem.
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How does STEEM differ from other cryptocurrencies?
STEEM is a cryptocurrency that is tethered to the social media platform STEEMIT, which is what makes it stand out from other cryptocurrencies. It is the only platform where you can earn a currency through your work. The incentive to create better and better content is limitless, and as your steempower grows, so does your influence on post payouts and curation rewards.
STEEM is also unique in that it is based on blockchain technology, making it the first of its kind. It is non-custodial and decentralized, with no downtime or data abuse, and the platform's data is perfectly secured. Users are paid in cryptocurrencies for participating on the platform.
Another way STEEM differs from other cryptocurrencies is that it doesn't rely solely on mining to create new coins. The Steemit network creates new STEEM coins every day, and these are distributed to content curators, authors, and users with Steem Power holdings.
STEEM also has two other cryptocurrencies on its blockchain: Steem Dollars (SBD) and Steem Power (SP). Steem Dollars are considered more stable and are intended to be valued 1:1 with the US dollar. Steem Power, on the other hand, symbolizes how much influence a user has on the Steemit platform. The more SP you have, the more power you wield.
Overall, STEEM offers a unique opportunity for users to earn cryptocurrency through their contributions to the STEEMIT platform, making it stand out from other cryptocurrencies.
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What are the risks of investing in STEEM?
Investing in STEEM, the cryptocurrency of Steemit, comes with several risks that you should be aware of.
Firstly, the supply of STEEM has been increasing by 100% each year since its release in 2016, and there is no indication that this will change. This constant increase in supply means that it is not advisable to hold onto STEEM for long periods, as its value will likely decrease over time due to the increasing supply.
Secondly, while Steemit offers an innovative concept of rewarding users for their contributions, it has faced challenges with content curation and voting. The platform has struggled to address the issue of bots and fake voters, which can manipulate the system and affect the quality of content. This could deter genuine users and lead to a lack of original content, harming the platform's value proposition.
Additionally, the monetization aspect of Steemit has shifted the focus of users and curators. They are now driven by financial incentives, which can lead to a decline in the quality and authenticity of content. Plagiarism and unethical practices may become more prevalent as users seek to maximize their earnings, creating a competitive and cut-throat environment rather than a collaborative community.
Furthermore, STEEM has exhibited high price volatility. It experienced a massive surge in July 2016, reaching a high of $4.34, but then crashed to around $0.12 by November 2016. While it recovered and touched a new high of $7.28 in January 2018, the price has since crashed again, trading at around $0.247 currently. This volatility underscores the risky nature of investing in STEEM, as the value can fluctuate drastically in a short period.
Lastly, there is a risk of a huge price drop, which could cause a significant loss for investors. While STEEM has shown some resilience, with new users joining even during periods of low prices, a substantial decline could still occur. If the price drops significantly and stays low for an extended period, investors may lose confidence and sell their holdings, creating a downward spiral.
In conclusion, while STEEM offers a unique value proposition, it is essential to carefully consider these risks before deciding whether to invest. The potential rewards come with considerable risks that could impact the value of your investment.
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What are the benefits of investing in STEEM?
Investing in STEEM has several benefits. Firstly, STEEM is a decentralised cryptocurrency that runs on the Steem blockchain, which powers the Steemit social media and blogging platform. This means there is no censorship, central authority, downtime, data vulnerability, or data abuse, solving a host of problems seen in centralised social platforms. Secondly, STEEM is not mineable like Bitcoin or Ethereum, making it more accessible to those who cannot afford the computational power required for mining. Instead, the Steem blockchain allocates newly produced STEEM tokens into a reward fund to pay Steemit users for contributing to the platform. This incentivises users to create and curate content, fostering a vibrant and engaging community.
Another benefit of investing in STEEM is its unique macro system of SP (Steem Power), SBD (Steem Dollars), and STEEM. SP provides users with more influence on the platform, allowing them to award higher rewards and receive higher rewards for curating content. SBD, on the other hand, is a stable currency intended to be valued at a 1:1 ratio with the US dollar, protecting users from volatile exchange rates. Finally, STEEM can be easily purchased and traded on leading altcoin exchanges such as Bittrex and Poloniex, making it convenient and accessible for investors.
Additionally, STEEM has established itself as a popular cryptocurrency since its launch, currently ranking in the top 25 of the largest cryptocurrencies by market capitalisation. Its daily trading volume is around $50 million, indicating high liquidity and potential for quick entry and exit. STEEM also has a strong user base of over 500,000, particularly among cryptocurrency enthusiasts in developing countries who value the financial rewards for their content contributions and curation efforts. This large and dedicated user base contributes to the success and popularity of the Steemit platform, which directly impacts the value of STEEM.
Lastly, STEEM has the potential for high returns on investment. Its price has seen massive surges in the past, such as the one in July 2016, where it grew from $0.27 to $4.34 in a single week, resulting in a market capitalisation of $384.5 million. While the price has fluctuated since then, there is the possibility for similar surges in the future, especially if the Steemit platform continues to gain traction and establish itself as a reputable global social media network.
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Frequently asked questions
STEEM is a cryptocurrency tethered to the social media platform STEEMIT. Users can create and publish content online and get rewarded for it.
STEEM is one of the only cryptocurrencies that almost anyone with an internet connection can participate in with no investment, meaning mass adoption and huge speculation increases. STEEM has more transactions daily on the blockchain than Bitcoin and Ethereum combined.
STEEM is not as popular as Bitcoin or Ethereum. There is also a risk of plagiarism and stolen content on the platform.