Steemit: Social Media Meets Cryptocurrency

A blockchain-based social media platform

Steem recently became the third largest cryptocurrency with a market cap of over $250 million. It is coupled to Steemit, a blockchain-based social media platform where users can earn rewards for posting and upvoting content. It is an interesting concept: similar to Reddit but with a strong monetary incentive to produce high-quality content.

The project looks very promising. It is an altcoin combined with an actual real use case. That is something we have not seen too much before. The last few weeks we even noticed posts and mentions about it on our Twitter and Facebook feed by people from outside the cryptocurrency sphere. So is Steem the next big thing? We do not know. It is a cryptocurrency that is not Bitcoin. So far most of these altcoins have turned out to be either scams of failures. It also looks overly complicated: there is not one cryptocurrency but three. Steem is the regular currency; then there is Steem Power and Steem Dollars. Is there really a need for all these different currencies for something that also could have been done with Bitcoin?

On the other hand; Steemit, the social media platform, is growing in popularity every day although it is still only in beta. If you sign up now, you get a free $10 in Steem Power. We certainly wouldn’t advise putting your life savings in Steem. However, signing up for an account and playing around with it for a bit is pretty risk-free. Create a few posts, upvote some content you enjoy and see what happens.

In case you get confused about all the different currencies involved; here are a few ground rules:

  1. Hold as little Steem as possible. The algorithm has a 100% inflation embedded in it per year. Not something you want to store any value in.
  2. Steem Power will increase your influence but every Steem you convert (‘power up’ like it is called on the platform) will be locked for two years before you can turn it back into Steem. Two years in the cryptocurrency world is a very, very long time. Do not put any more of your own money in there then you would spend on lottery tickets or something. However, if you earn Steem Power by creating or upvoting quality content; good for you!
  3. Keep your Steem dollars. A Steem dollar is token worth about $1. These hold their value and give you something to cash out whenever you want.
  4. If one of your posts takes off, and you want to collect the profits in real dollars; you will need to open a free account on a cryptocurrency exchange (we highly recommend Poloniex). Here you can exchange Steem in Bitcoin. Then look for an ad on LocalBitcoins in your region to get cash for your bitcoins.

Lastly, here are three popular posts about Cambodia on Steemit:

Happy blogging and good luck!

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