Why I am Trading My Bitcoins For Steem
Some people, like me might be kicking themselves for not buying any steem back before it jumped to $4. But I still feel incredibly grateful to have found out about #Steemit now. The current price of Steem still feels incredibly cheap to me. Here is why.
Steem makes Bitcoin seem sort of Stupid
I hope I don’t completely embarrass myself by explaining my understanding of cryptocurrences. As I understand it, #Bitcoin and pretty much every other cryptocurrency is mined by solving algorithms. There are hundreds of thousands if not millions of servers out there solving algorithms to pull Bitcoins and other cryptocurrencies created from thin air into people’s wallets. So tell me again why people are wasting tons of electricity, servers, and warehouse space?
Steemit is the poster child for a new type of crypocurrency creation. Doing something valuable to create currency. Blogging might not be something you would consider valuable but compared to solving algorithms with servers it really is. It just makes so much more sense. The people that do mine #Steem can be dedicated to validating transactions, something useful.
Bloggers get paid to blog, readers get paid to comment and vote, investors get paid to invest, miners get paid to validate transactions. Steemit has created it's own small economy.
This same idea can be applied to pretty much everything on the net. Video hosting, porn, streaming music, the possibilities go on and on. I believe this new form of currency creation is just the beginning.
Steem is a gateway crypto currency
Steem is the first crypto currency that average people will be able to get without paying for it, or mining it. You don’t have to really understand how it works. You can post things, upvote, and get paid.
Most people still don’t even know what Bitcoin is. And of the few who do even less have or use any Bitcoins. People know what Reddit is though. It’s not hard to explain to someone what Steemit is. It’s like Reddit, except you can get paid for using it.
If there was any new #cryptocurrency as of yet that could become more popular than Bitcoin, it is Steem. That is why I think a price of $4 per Steem is still dirt cheap. It’s hard to imagine where Steem will be a year from now. Unless there is some un-patchable security hole, the one thing I don’t think it will be is a smoking crater.
This is Still Just The Beginning
I missed the early days of Bitcoin. I had bought my first bitcoin at around $600. Just before it went up to $1000 and I rode the Bitcoin coaster all the way back down.
Steemit is still so incredibly young, But I really do believe that when people talk about the history of crypto currency it will go something like this: First there was Bitcoin, then a bunch of other currencies that didn’t really add much, and then came along Steemit and it changed everything.
Steemit has great potential, no doubt, but Bitcoin has the first mover advantage. It's the defacto standard cryptocurrency.
For trading, Bitcoin is a solid investment, though the rewards won't be significant. At this stage, STEEM is a high risk strategy, but one that may well pay off very, very handsomely. It's worth a risk, I'd say, but I wouldn't get rid of all my Ethers or Bitcoins yet.
First mover advantage is good, but it is not the decisive factor, because others have a chance to improve their platform from first mover mistakes and successes. For example, Blockbuster was the place to rent movies, but before Netflix. Netflix delivered movies to your house at first, while Blockbuster wanted you to come to their store.
Steemit is risky, but I do like this reward system more than mining, because mining does not produce anything, and it spends a lot of power.
I'm very comfortable with the fact that it could totally blow up in my face. I think Steemit will be the thing that pulls the non technical crowed into crypto. That is worth a lot.
"In some industries, under some circumstances, it’s much better to enter late.”
http://insight.kellogg.northwestern.edu/article/the_second_mover_advantage
Ethereum has the second mover advantage. :)
But, yes, you are right. For being so early, Bitcoin hasn't really been able to take the platform to the mainstream, even after these many years. So yes, the market is ripe for disruption.
I'm long on Steemit and Synereo as the future of social networking. I just don't see a future for those that socially engineer and sell information like Facebook or the like.
What's your opinion on how Synereo fits in with Steemit?
Great post! I especially like what you said about the downside of mining a cryptocurrency through algorithms. That does require a lot if energy, but essentially it is a liability, since as difficulty grows, more CPU is required, thus more energy required.
You don't have to throw all your eggs in one basket. If you have bitcoin I'd hang onto some of them.
I will. Very few though. I can always buy more when/if the price drops again.
children grow very fast... hold!
It will be up to all of us as thw Steemit community to ensure proper growth of this incredible format. And yes, i agree, way more value here than in Bitcoin.
Steem have much more potential and great chance in this time to get much money from blogging, post comment that get much votes. Even much votes in your blog or post comment, even much money you get.
For me, i'm not trade to bitcoin to steem. But, trade from steem to bitcoin to buying steam games, invest, and buy handphone voucher with bitcoin if my STEEM is rich.
Pretty good if you have the opportunity to express their opinions, and even get rewarded for it. The main thing that the information on the website was not a continuous plagiarism.
Guys please diversify, remember the guys who bought bitcoins some years ago at 1000 usd each
Done and done. Feels good. Now watch BTC go to $10k.
i believe you have good investment knowledge. Can u share your views on this ?
https://steemit.com/steemit/@mjsteem/is-amway-a-good-option-for-business