While the world of crypto investing is sailing across a sea of green profits, riding the waves on cruise ship sized coins like Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, and a fleet of others, our little Steem boat is still the best bet.
Chugging along at its own pace and gathering passengers along the way, Steem has more going for it then it gets credit for. I believe it's the most undervalued blockchain of all and here's why.
For clarity, I'm talking about Steem (and Steem Dollar), the coin and the blockchain, not Steemit.com and all the other sites powered by Steem.
Did you know the Steem blockchain processes more daily transactions per day than Bitcoin, Ethereum, or any other coin? Literally, it ranks first in the number of transactions per day most of the time.
Actually, this week it is neck and neck with Ethereum. The two blockchains have been switching places almost daily for the last couple of weeks for first place in the number of transactions.
Imagine the fees they generate. Oh, wait, there are no fees on the Steem blockchain.
That's right, transaction fees for Steem or SBD are zero, nada, zilch, which makes it's the ideal token for peer-to-peer (P2P) transactions and micro-payments. Try buying a cup of coffee with bitcoin right now and the fees will average $30. So much for bitcoin's plans for mass adoption as a P2P currency.
Steem, on the other hand, can be exchanged for no fee and 3-second transaction times. Three seconds from the time I transfer Steem to your account you can be spending it, not quite as fast as handing you money face to face but close enough.
In addition, while Ethereum is currently at 100% capacity and backlogged with 16,367 unconfirmed transactions waiting in line to pay ever-increasing fees, Steem is only running at .36% (point-36%) capacity with zero fees and no waiting time. Every transaction has gone through, usually in 3-seconds.
Yet Ethereum is sitting at 79 bil market cap and Steem is at .9 mil (point-9%) market cap. Does that worry me? Not at all.
There are many reasons people can speculate on as to why Steem is undervalued. Some say investors are cautious about investing in a coin that has been pre-mined before its release because having such a large stake owned by a minority exposes the coin to market manipulations.
Others worry about the drain on their investment when people power down, but I think they are missing the point, even as I can see their point.
Suppose you're an investor looking for good returns in crypto. Yes, parking a sizable chunk of Steem in a wallet and powering it up could give you an immediate, daily return but you have no interest in blogging or curating content to earn it.
There are many people you could delegate your Steem Power to who support programs and projects that will further your investment while retaining control of your initial investment. Where else can you invest in development without exposing your initial investment?
People are incented to acquire and hold many altcoins, mostly speculating on the price rise in the future. Many hold Steem for the same reasons, but what makes Steem different is it rewards you for holding it right now even while you're betting on its price increasing.
Imaging if a coin paid you dividends while you held it in speculation of a future profit. Oh, wait a minute, that exists already and it's called Steem.
For any currency to have value people have to agree it has value, but what makes Steem so unique is the value is backed by human value.
To a speculator, the value is in the return on investment, but to a blogger in Venezuela powering down every Steem Dollar they earn to put food on the table, Steem is just as, if not more, valuable today than any promised future may hold.
People supplementing their income or living on Steem know the value they have created through their creativity, their engagement with the community, and their attention.
Humans don't usually ignore things that have a positive effect on their lives. In fact, they usually adopt it and spread the word. This brings more people into using cryptocurrency (Steem) and increases its network effects which propel the value of the entire economy.
Steem is not mined like most coins but it is created every day just like the content created by authors on Steemit. Our votes assign a value to different content creators to distribute those tokens each day.
It gets distributed based on the value we assign to a post, proposal, dapp, program, initiative, and a host of other projects on the blockchain. Humans are involved in and integrated with its use and distribution.
There is a real community behind it. Developers, 3rd party apps, promotions; grow organically with the support of the community involved in Steem.
The largest companies in the world owe their success to the problems they have solved for people and Steem is bringing so much value to its community that it's undeniable we find value in it.
From an investors point of view, it would seem like the ideal investment. Why?
- Your initial investment is liquid even while you fund and further the growth of your investment.
- People are incented to improve the Steem economy without your investment directly funding it.
- The community using Steem is growing exponentially at very little cost.
- The cost of transactions is zero and our capacity has room to handle many more transactions.
- The price of SBD/Steem is rising.
Steem is changing people's lives on a daily basis all over the world in a direct way and that brings more value to people than any other coin I have seen.
To someone who doesn't have $20 to invest in bitcoin or ethereum but can earn $20 of Steem by uploading a video or blogging, the value is immediate. This makes it easy for people to enter the world of cryptocurrencies and accessible to people from all walks of life.
Without people using a currency on a daily basis, there is no economy to bootstrap at all. Steem is being used by people more than any other crypto out there and that only happens because they have a use for it.
Even the people who earn and hold Steem take it out of circulation and by doing so, make it more scarce having the effect of increasing its value.
For those who argue that people who power down are draining the value of Steem, I don't see their logic. While it may affect the price in the short term, for every Steem cashed out for fiat there is also fiat being invested in Steem which increases its market cap and price.
For every seller of Steem being powered down, there is also a buyer of Steem powering up, it is just exchanging hands. That's what makes an economy, people exchanging value on a daily basis using a medium of exchange. In my view, someone cashing out for fiat just proves that Steem is a functioning, thriving, and has value because it solves human problems.
Steem offers utility to everyday people who come for the rewards but discover they have in their hands the ability to not only change their futures but to solve immediate concerns. An investment in something so practical that's poised for mass adoption with the ability solve immediate human needs is an investment worth many times over its current spot price.
Ned Scott put it best when asked during a fireside chat at Steemfest 2 in Lisbon, Portugal what his Steem holdings worth represents to him as the price of Steem steadily rises.
"Opportunity.", was his concise response.
What Steem and all the platforms being built around it represent is the opportunity for anyone who can use the internet to earn value through their online interactions, their creative and cognitive efforts, and to be the captains of their own financial ships.
While personally, I have invested in the cruise liner cryptos mentioned above, I was only able to do so because earnings from Steem made it possible. Steem was my first and will always be my favorite crypto and I admit my bias.
But it's interesting to note that while all of the gains earned from my investments these past few months as this sea of green tide rises, Steem is still the best performer day in and day out. Plus, it's a lot of fun being part of this community.
Steem may be the "little boat" who thought he could compared to the top ten altcoins, and I'm here to tell you, he can and did. We may be a little boat but it's packed full of people for a reason.
It's valuable to be on this boat, It's seaworthy and going places.
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I had predicted a couple of months ago that Steem would be around 4USD by the end of the year. It is almost close to that now. I still feel that there is a lot of upside for Steem. I think all the growth till date is for the capacity of Steem to take care of rewards and ability to create apps on the blockchain.
While current leg of the growth will be driven by these apps gaining more visibility and companies which work on creating apps in steem blockchain the next wave of growth will be driven by Steem acting as a payment alternative to other coins like Litecoin, Reddit and Verge.
Everybody has have associated an image of Blog to steem network and hence they are missing out on the other usecases that it is fulfilling without creating noise. There will come a time when people will realise that and Steem will moon.
I never knew the highest daily transactions fact, neat to find out!
It is competing with Ethereum for the #1 spot. The two coins keep switching places each day. See for yourself here: http://blocktivity.info/
Steem has come of age at a perfect time!
With the existing corporate social-media platforms banning/censoring/blocking/de-monitizing content, Steem is a wonderful replacement for them!
Add the potential to actually make a little money on top of that and Steem may be off to the races!
Coincidentally. Is all content welcome on steem? Is there even a way to ban people?
As far as I can tell, there is no way to ban people. You can hurt their reputation, but that isnt fatal on steemit.com
check out @berniesanders
his rep is -18 and he's still kicking
So what would the network do if say someone started posting child porn?
On one hand censorship is bad, but on the other having some content be available here would only hurt steem.
We already had child porn and it got stomped down by the big guys who do police the place. They stomp down bad guys all the time here.
Most people with bad intent do not survive a whale attack because they have no money or resources to fight back. B. Sanders rep is of no concern to him due to his big wallet balance and around 30 well-funded alternate personalities he has created.
I mean I can still view the low reputation posts, even if they are hidden by default.
You're tilting at windmills..
No place (schools, churches, libraries, websites) is EVER going to rid itsef of something that someone else is opposed to.
No place is perfect except heaven, and we arent there yet.
Is there anything else you would like changed to fit your desires?
This is true. Nothing to do about that.
Well, a posting isnt placed into the blockchain until its at least 7 days old, so there is a chance it will be caught.
As a transparent network, its not like they could hide it if they wanted to.
Unfortunately, child porn can be found on the presently popular social media platforms.
Timing is one of the most important things in the adoption of new technologies too.
Which is better, after accumulating a few steem, keeping it inside steemit wallet, or transfer it to another wallet?
Keep it in Steem Power in your Steemit wallet so you can earn more is the best option if you're going to hold it.
Truely, agreed! @luzcypher
Yes, its always best to keep track of everything in the currency market instead of buying more through the app. @guruvaj
thanks for the advice.
Your welcome, anytime my fellow steemian!
Steem is the most undervalued crypto hands down! 2018, we will grow exponentially, it's gonna be a great year. SMT will be the next big thing, so many websites will adopt it when they see their competitors utilizing it. Cheers!
Great post luzcypher!
I'm preaching the merits of the STEEM blockchain first and foremost too. The app of Steemit is just a tiny part of it and in my opinion, wont be the main part in the future.
Buy STEEM!
I agree. We are pitching the rewards when that is just one point of value Steem has. There are so many other attributes that giving it value that just get glazed over.
Worry? Hell this gets me excited.
I believe it is simply a matter of publicity. STEEM does not have the attention the other tokens have. STEEM is quietly going about its business without the media making a big deal about it. In the long run, I think this better since the apps being developed have time to work out their bugs.
SMTs are going to be a gold mine to the steem blockchain simply because they are going to garner eyeballs. Like ERC20 make ETH an overnight sensation, SMTs will get that for steem. Also, it will pulls millions onto the chain without any fees and 3 sec transaction time.
That is a very good point. It is wise to make a grand entrance when everything is working in your favor.
I tend to agree, but it could also bring the wrong kind of attention to it if someone uses the SMT function to create and ICO that turns out to be a scam, bringing the attention of regulators at a time when ICO's are being scrutinized by the IRS and other government agencies. It's a big gamble.
A couple points on this thought:
-The ICO scam idea is out there already so I really do not think that SMTs would do anything that isnt already on the radar.
-Scam coins using ERC20 hasnt hurt ETH at all....I am not sure most people hold the protocol responsible for the actions of people
-Even Buterin himself stated that he believes 90% of the tokens created on ETH will end up failing....yet he doesnt appear worried about that impacting the success of his blockchain (of course not, he has to worry about it being to damn slow 😁 )
Overall, with a solid foundation which is being created here from a development stand point, even if someone wanted to hold the blockchain responsible for a few scamcoins, the benefits will far outweigh the negativity.
Very good points you make. I believe it is easier to ask forgiveness than permission and we should go for it full steem with SMT's and as you point out, it didn't hurt ETH and won't stop us either.
LOL @luzcypher. I agree totally...nothing great was every created with permission.
The next hard for should put this blockchain on the map in a big way. From what I could find, we are looking at communities, automated sign up, smts, and hivemind (I still have to research that one).
It will be amazing.
Whatever it is, we're going to make this baby do what it can do. I'm riding it the whole way so I don't miss a thing.
Exciting times, right?
What is the hivemind about?
I dont know...if I recall correctly, @cryptoctopus referred to it (another or two have also). I am not sure what it is so I cant elaborate.
As for riding this, I believe this will be a $100 token a year from now...so I am all in on this...
A moonshot isnt unrealistic in this instance...there is so much going on that it makes one drool....
Totally agree! Steem is the most undervalued ecosystem out there! I think retail investors didn’t realize very well what Steem is and what potential it has.
Bitcoin attracted a lot of attention lately, this led to more people getting involved and buying the top coins...Steem is right below that level and not everyone have noticed it yet.
But I think 2018 will be literally explosive for Steem with the SMT and future implementations, the revolution of decentralized social media is coming!
No fees and 3 seconds blocks time is the best solution for a p2p payment network even for micropayments, with over 1 million transactions a day the blockchain’s capacity doesn’t even reach 0.5%, it’s insane! Happy to be part of one of the best blockchains in circulation 😁
hey, can you pls explain a newbie what SMT is? :) Thx mate
Sure, I will use the developers words as it is easier to explain:
“A Smart Media Token (SMT) is a native digital asset on the Steem blockchain that can be quickly launched by anyone to help monetize online content and create incentives to encourage desired user behavior.”
It helps publishers to monetize their contents through these tokens, plus it is a p2p network of course so no third parties in between, it is a big thing, it could bring a lot of attention to the Steem community from businesses. 😁
thank you too for explaining it to me :)
Do we know the time it will start to operate? :)
Interesting, i throwed in a question and immediately two people rushed in to answer it :)
I love this community ^^
Get used to finding help from people on Steemit. That's how we roll. The Smart Media Tokens will start rolling out in 2018 and has the potential to change the way we interact on the internet.
It stands for Smart Media Tokens. These are coins that other people can launch but are built and backed by Steem. You can read more about Smart Media Tokens here
Eventually, any website publisher will be able to add the same functionality to their websites that Steemit.com has and reward people for interacting with their websites.
Because every new coin that is issued is backed by Steem, these website owners will have to buy and hold Steem to issue their own coins. This increases demand for Steem and keeps it out of circulation reducing its supply and increasing its value or price.
Very good time to be holding Steem and Steem power.
Omg that sounds fantastic Oo
I'm getting super excited of the future after reading all of this hehe.
I think i have to do some research right now :) thank you
Btw i've earned my first 15 pennys because of your upvote. A thousand times i want to say thank you mate :) After i have noticed it i danced in my room for a minute to celebrate generating money in the internet for commenting. Thats just awesome <3
It is exciting watching the show from the front row.
You're right when you say that Steemit is undervalued. Censorship as mentioned in a comment below has played a major role in many people's decision to migrate to platforms such as Steemit. At least that was one of the major factors in my making the switch! I value Steemit as a means of becoming familiar with cryptocurrencies and learning how to network with others in a community that is open to new ideas and innovation. This is the perfect place for anyone new to alternative currencies to learn! I have been trying to raise awareness in my own local community by mentioning a place for people to generate income by writing and sharing their ideas here and helping them to discover Bitcoin and other currencies.
That's great you are sharing it with people. That's how we keep growing. It's so much fun and exciting to be part of this great experiment.
I thought so, too! I want to see my friends from other social media sites benefit as well, and as we both mentioned this would grow the site tremendously. I mention it to each new person I talk with and older friends when I see them out. I have told them that it would be great if they could make money from their writing as well and let them know that it's well worth looking into if they want to generate some extra income. Right now I am learning all I can so when they do jump onboard, I'll be able to help.
Im not quite acquainted with how everything from blockchain to altcoins to Steemit goes because Im kind of new here. I have a lot of questions still even after reading the artcle (whixh really broadened my horizons. Really nice posta though) but i am very much willing to learn.
Where does the money come from? What do we mean by mining? Can asking people to join steemit help the community? How is it possible that I am earning from my content?
I am still confused really but really fascinated with how the system goes. The community is really unique. But based on my curent understanding, here are my thought:
I can already see the future of Steemit as the new Facebook, Zappl as the new Twitter amd Dtube to take over Youtube. The possibilities are endless in this decentralized blockchain.
I am well aware of social media platforms making money out of their applications and websites. From ads to personal info down to our own ingenious ideas, they are making profit out of it while they sit back and watch the show go on as money enters into their pockets.
And we are left blinded with nowhere else to go because of the monopoly they exert on the market. I mean, where else will I post my smartphone photography than in Instagram. But now we have Steepshot! And i couldn't be happier
These newer decentralized platforms powered by Steem communicate to a broader audience worldwide and does not rely solely on you followers or friends.
And the best part about this: Profit is returned to the hands of the people. The whole idea is revolutionary. Kind of like how balance is restored after years of tyranny and gold is finally looted out of the palace and into the citizenry. Finally, layman have the power to make their dreams come true through his own means in social media.
Every post we make is our Intellectual Property. No person gains the right to capitalize on our thoughts and ideas.
Welcome to Steemit. I'm sure you have a lot of questions.
You can find the answers to a lot of these questions in the FAQ section of your blog. The upper-right corner has a menu icon. Click that and read FAQ and Welcome.
This is a revolution in a way and is redesigning how we interact on the internet. It's a grand experiment and interesting to be part of it.
Another site you may find helpful is https://www.steemithelp.net/
I could care less about the value as I do the platform. There's a ton of originality here, and incentive for new people to share themselves every day.
It is a lot of fun mingling around on Steemit and the talent and creativity are inspiring. The community on Steemit is unique and enthused and you never know what you're going to get.
I think Steem is a blockchain with a lot of potential. Hopefully it will be added by more exchanges.
Steem is the future! Slow and steady wins the race :)
How about the developer of SMT's or Steem and Steemit? Is there enough developer out there in the wild ready to engage this platform to the broader userbase, to the masses. I read some review of bitcoin that there is a lack of talent, developer who can carry on with good ideas, and sharp technical skills for the blockchain system.
What is the status of smts so far?
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I would like to express my gratitude.
@luzcypher With almost instant transactions and zero fees I strongly agree that it is the most undervalued blockchain. There's room for exponential growth for Steem. I can see it exploding soon!
Highest Regards
@lordneroo
Good Information @luzcypher Merry Christmas bro
Merry Christmas to you @orges1
Loved this post!
Upvoted! I love this platform! With the continued innovation of the admins, the value of SBD and Steem will continue to rise!
tbh i have no idea if it will skyrocket but i really rly hope it will :)
A very detailed and fascinating post, thx!
I hope it continues. My love for Steemit grows the more I use it. I am planning a lot more bushcrafting adventures this year and I love documenting them and sharing!
i think i understand. thank you unclt lucifer. very knowledgable
Steem is one of the only coins with clear value.
Wow! Loved this post <3
100% agree with every statement: At the beginning I was thinking about quoting every nice sentence and commenting on that, but I figured out that it would be a single quote from the beggining to the end.
Thank you!
Hahaha! That's funny. Thanks for taking the time to read the post.
"This makes it easy for people to enter the world of cryptocurrencies and accessible to people from all walks of life" ....true, e.g myself.
"...opportunity for anyone who can use the internet to earn value through their online interactions, their creative and cognitive efforts, and to be the captains of their own financial ships."...thats one of the best things about steemit.
As regards to it being undervalued, you have said it all but I believe it's just timing i must say but with its value shifting at its current rate, Sooner than expected the value of steem will climb higher than predictions.
This little thing of ours is growing daily and is just getting started.
With Steemit and Steem, we have great blockchain, on which there exists a fantastic info-sharing community that is developing what may become one of the remarkable and widest-ranging resource sites on the internet, and which produces one of the finest cryptocurrencies.
At the current price of just over $3, we can safely say that Steem is indeed "undervalued." But as the price action of the past 2 weeks clearly shows, it will probably not remain undervalued for long.
Thanks for the detailed posting.
Full Steem Ahead!
What a great @luzcypher! thanks for sharing
Steemit is a change of life for me in all ways @luzcypher!! Thank you for your great post. Blessings!!
Thank you sharing
Steem is one thing, Steemit another :) While Steem may see itself growing, I'm not so sure about Steemit. I like it and use it but it'll only mature when the login, posting credentials management (keys) and the editor interface become usable also for the non-techy general public. Steemit still has a massive learning barrier that most people will not be able to handle without losing money, losing their account or simply become frustrated.
This is true and one of the reasons Steemit is still in beta. The site has a long way to go before it's ready for mass adoption. The Steem blockchain, however, is pretty remarkable.