Steem, Steem Power(sp) and Steem Dollars(SBD), A complete informative discussion for newbies

[hamzayousaf]

 

What is STEEM?

Steem is a decentralized cryptocurrency that runs on the Steem blockchain, which powers the Steemit social media and blogging platform. The digital currency STEEM is not mineable like bitcoin or ether. Instead, the Steem blockchain allots the majority of newly produces STEEM tokens into a reward fund, which is used to pay Steemit users for contributing to the platform. Additionally, Steem like most pther cryptocurrencies  can also be used to make digital peer-to-peer payments. Steem is primarily used on the Steemit platform. However, there are also a handful of other social media networks that support STEEM, such as Steepshot, Busy,  and the Esteem app.Currently, Steem has a market capitalization of $1.5 billion and ranks in the top 25 of the largest cryptocurrencies. Its daily trading volume is at around $50 million, and it can be traded on leading altcoin exchanges such as Bittrex and Poloniex, among others. 

 

What is the Difference Between Steem, Steem Power and Steem Dollars?

While setting up an account on Steemit, you will discover three different digital currencies in your Steemit wallet; Steem (STEEM), Steem Power (SP), and Steem Dollars (SBD).  You can earn the three digital currencies mentioned above as rewards for contributing to the platform,.  

STEEM:

Steem (STEEM) is the cryptocurrency that powers the Steemit network. Steem can be used on the Steemit platform to gain Steem Power (SP) through a process called “powering up” or to buy Steem Dollars (SBD). As a liquid digital currency, it is convertible into fiat and other digital currencies on cryptocurrency exchanges such as Bittrex, Poloniex, UpBit, and HitBTC. STEEM also imposes the value of the rewards that are paid out to users for contributing to the Steemit platform. 

 STEEM POWER(SP):

Steem Power (SP) is the Steemit platform’s internal currency that cannot be traded on digital currency exchanges. Steem Power has two functions. Firstly, it provides users with more influence on the platform to award higher rewards to users and receive higher rewards for curating content on the platform. Secondly, Steem Power provides holders with a share in the Steem reward pool. Hence, there is a strong incentive for Steemit users to gain as much Steem Power as possible through contributing to the network and by converting purchased STEEM into Steem Power.

STEEM DOLLARS(SBD):

Steem Dollars (SBD) is another internal currency on the Steemit platform. Steem Dollars are effectively IOUs that are worth one dollar worth of STEEM tokens when redeemed. The idea behind the Steem Dollar is to prevent a volatile exchange rate of the platform’s internal currency to deter users from interacting on the platform. The Steem Dollar can also be traded on several major exchanges and has a market capitalization of around $50 million with a daily trading volume of approximately 25 million according to CoinMarketCap.The way Steemit’s crypto-economy is structured it encourages user activity, and investment, as users benefit financially from contributing and curating content and from purchasing more Steem Power to ensure a larger piece of the Steem rewards pie. The Steemit platform is, therefore, poised to continue to grow in size, which, in turn, will be advantageous for STEEM holders. 

 

Should You Add Steem to Your Portfolio?

The value of STEEM is closely connected to the success of the Steemit platform. While there have been questions about the legitimacy of the Steemit platform with some critical users referring to it as a Ponzi scheme, Steemit has managed to onboard over half a million users since its launch in 2016, which shows the potential that Steemit has as an incentivized social media network. Furthermore, Block’tivity indicates that Steem’s blockchain has the  highest activity score, with more transactions than Bitcoin and Ethereum combined.If Steemit manages to keep its leadership position as the go-to get-paid-to-post content creation platform and manages to establish itself as a reputable global social media network, then STEEM tokens will most likely be worth a multiple of where they are trading now.Having said that, social networking is a very competitive market with well-funded players, such as Facebook, which could easily change their business model to also reward their user bases for interacting with their platform. At this point, it would be tough for Steemit to compete and the value of its digital token would eventually decrease.Investing in STEEM – like all altcoins – is a very risky affair. However, STEEM is a token with a lot of upside potential as its underlying platform is still the market leader in a highly popular new market segment that has the potential to witness growing demand in the future. Therefore, by investing in Steem, you are indirectly investing in the future success of the Steemit platform. If you believe Steemit will succeed, then adding some STEEM to your digital asset portfolio makes awareness. 

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Comments

[amitraj]

Wow its really very informative ..to know how it works properly....

[atiqadnan]

Very useful information .

[hamzayousaf]

Thanks

[nomannomi]

now its time to make steem power . make work hard for steem . because now eassy to get steem but after one or two years it will be very difficult for us to get steem with high prices. a man will say that '' O listen look at my wallet i got 0.01 steem in my account'' and he will very happy from his work

[hamzayousaf]

Hahaha...really you are right

[biyanoor]

Be careful guyz.. This man @hamzayousafs account is hacked.. Dont trust him.. Scammer who is hacking pplz account and stealing their money.. The scamer sending links in comments.. Like he also stole @cinderz money and hacked her account..

[irfanullah]

i think steemit has a great potential and we can increase our steem power it will increase our rewards on steemit like Creation rewards and curation rewards. i am using my sbds for purchasing crypto currencies. in the begining i have increased my steem power. Thanks for such an informative post @hamzayousaf.

[hamzayousaf]

That's good strategy you have adopted. Keep on enjoying and doing good on this platform.
Thanks for your views

[practicaleric]

Excellent article- I like the breakdown and explanation of steem, SBD and SP. I remember last year when I joined steemit and was having a hard time understanding the 3 tokens, but over the past months I have come to know them well :)

[hamzayousaf]

Wow.....well done dear @practicaleric that's great that you learned all during hard time but didnot lose courage.
Keep on working hard. Best wishes for you.

[dolphen]

steemit is the best platform for earning . and steem is very famous digital currency . i have no more steem power but i want to make sp on steemit because its the best investment on steemit

[hamzayousaf]

So I think that you should invest some steem dollars you earned in steem power... you think have more power to get viral on steemit and if a post that you upvoted in it's initial stages or when there were not many upvotes to it , gets viral you will earn steem power and steem dollars .

[leoumesh]

This article is really enlightening for newbies🙂
We should think of the Steem wallet as having three main folders. The first one holds our liquid STEEM, which is the base cryptocurrency of the network and can be bought and sold whenever we would like. The second one is for SP, which is just STEEM that affects our influence. The third folder holds SBDs, which are tokens designed to be pegged to the US dollar🙂

[hamzayousaf]

Ahan great explanation. thanks for sharing

[hamzairfan]

In these days we can easily purchase steem and steem power but after 1 year it will be increased. Thanks for sharing such a great advice @hamzayousaf.

[hamzayousaf]

Yes do try to get more and more steems and to get steem power keep on doing quality contents and do comments on others posts. Thanks

[apakapluk]

Your information this time is very useful for me ...

I want to ask you @hamzayousaf ..

For a beginner like me, What should I do so I can succeed on this platform,
Should I collect steem power first, or.steem, or steem dollar?
Please guidance you @hamzayousaf.
Thanks for sharing.

[hamzayousaf]

Thanks and a very good question from your side.
The answer is that you should collect steems first and write quality contents , do more and more comments.Then definitely people will upvote your comments and post too,then your steem power will increase soon.people will do comments on your post because of your up steempower.and you will definitely get success.

[apakapluk]

Ooo ...

Why should I collect steam first @hamzayousaf ??? Is not steam pawer?

[mateen]

Well crafted post. i would recomend to add disclaimer for investors who may invest after reading your post.

[hamzayousaf]

Thanks.
yeah sure..

[mdfahim]

Is there any way to increase steem power fast without buying? @hamzayousaf

[hamzayousaf]

Yes there is way to increase steem power so you should do more and more comments to others post and write the quality contents so that people would like your posts and they will upvote, and will do more and more comments on your post.then your steem power as well as your earning and repu will increse very soon.
Thanks for asking ..Best wishes for you.

[mdfahim]

Thank you so much @hamzayousaf

[muhammadkamal]

very good discussion.
thanks for sharing informative writing.

[hamzayousaf]

Welcome

[steemrobot]

Very useful blog thanks @hamzayousaf for info

[hamzayousaf]

Thanks

[rehan12]

It sure will be helpful to many ;)

Nicely explained and with easy words !

[hamzayousaf]

Thanks

[irfanullah]

i always learn new things from your post. in this post you have well briefed about steemit and steem, steem power. i hope for the best.

[husnulamin]

nice information man @hamzayousaf

[ahsan047]

just read few lines, it was great ..