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I'm super intrigued by Steemit. Lots of great content, no ads, I choose what I want to read. Don't know how the Steem dollars work though. I've been researching the whole cryptocurrency thing ad nauseam over the past couple of days. Think after hours of research I can finally explain to my wife what BitCoin mining is and how it is possibly even worth something.

Here is how I describe in Haiku Steem vs Steem Power Vs Steem dollars. In a week, you'l be able to have a conversation with your current self and say it all makes sense.


https://steemit.com/steemit/@gikitiki/a-steemit-haiku


My Coles notes version:

  • Steem = The currency. I think of it more as a commodity (i.e. gold) It has a price that fluxuates based on the market. It's usually valued against 1 BitCoin.
  • Steem Power = Invested Steem. You've locked this away for at least 104 weeks. The more Steem Power you have, the higher your reputation will be. With a higher reputation, your upvotes will mean more.
  • Steem Dollar = The quantity of steem that is roughly equivalent to $1 USD

Thanks again gikitiki. Wondering why they tied it to the USD? Also wondering how one becomes a whale. Are whales the largest financial contributors or did they just get there first?

Have you read the white paper? That will help. It's a little technical but a helpful read.

I've read some of the white paper. I was a little confused admittedly. I found it more helpful to listen to those smarter than I contribute their 2 cents. What I struggle to understand is exactly how Steemit can afford to reward posters financially. I can definitely see a future buy out for this endeavour but cannot understand how it can remain profitable. I think from what I understand 90% of people are locked into SteemPower.