Steem Currency Cheat Sheet
To better understand the three types of assets in Steem and how they can be converted one into another, I’ve created this Steem Currency Cheat Sheet.
Hopefully this can serve as a helpful reminder. I’m not an expert however, and might have gotten something wrong. So if you spot an error, or just feel like adding something, please let me know!
So the three asset classes in Steem are:
STEEM:
- Liquid, tradeable on exchanges (currently Bittrex, Poloniex, and BitShares OpenLedger)
- Can be transferred from an exchange into your wallet, use your account name as the address
- Alternatively, can be converted directly from BTC, ETH, or BTS. Use the Deposit option in the Steemit wallet
- Can be transferred to another user. Use the Transfer option in the Steemit wallet
- Inflates by 100% each year
- Because of that, should be held short term only
- Each 3.3 years, a 10:1 reverse split occurs
- STEEM is like cash in a hyper-inflated economy and can be used to buy SP and SBD, below
Steem Power (SP):
- Illiquid, implies long term commitment to the Steem network
- The more SP you have, the larger rewards you get for curation
- Of the newly emerging STEEM, 90% goes to SP holders, and 10% to content authors and curators
- Acquired by Powering Up STEEM or with a direct BTC/ETH/BTS deposit in the Steemit wallet
- Take 104 weeks to be converted back to STEEM — use Power Down in the wallet
- SP is like company shares — the Steem network distributes its revenue among SP holders proportionally to the size of their holdings
Steem Backed Dollars (SBD or SMD):
- Liquid, tradeable on exchanges and Steemit internal market
- Designed to have stable value of about $1. Current values are listed here (see the Feed column)
- Pay holders 10% annual interest
- Can be converted to STEEM right in the wallet. Conversion takes 1 week and the price is median price over that week
- Can be transferred to another user. Use the Transfer option in the Steemit wallet
- SBDs are like bonds. By holding 1 SBD you effectively lend the Steem network $1, and are paid some reward in return, though likely not as much as with SP. On the other hand, you can sell SBD at any time unlike SP
This neat diagram shows how you can convert between those assets and Bitcoin:
But this is wrong? You cannot buy SP with Steem that entire arrow is extraneous. {correction I was wrong about this, see below}
Btw a Bitcoin maximalist used this chart to outline Steem as a Ponzi:
I disagree obviously.
You sign up, you blog, you get paid. That's what most people will do. There's no financial accusation that one can launch against this. There's only gain involved. You start with zero and try to make something.
Cryptoinvestments are a different animal altogether, and there is not a single cryptocurrency, BTC included, that has not been labeled a ponzi, a pyramid, etc.
Completely agree. It's reductive to absurdity. Everything that goes up is basically a Ponzi through that lens. Tesla, AMZN, Scty, AAPL, goog, Enron, etc
lol, even if the chart is not from peterez, at least he used it as something helpful instead something used for blaming :)
Do you mean the Power Up arrow? It's here to denote that STEEM is converted to SP by means of Powering Up
The deposit arrow from BTC to SP. That is not a transaction that it is possible.
You can deposit BTC and buy Steem Power directly using the "Deposit" button on Steem Power in your wallet.
Hunh you guys are right, I stand corrected I just checked that out. Thanks!
@blocktrades lets you do it.
I stand corrected!
It is possible through blocktrades, I believe. The chart should probably show that it's talking about using blocktrades.
Thanks, I stand corrected.
Disclaimer: I am just a bot trying to be helpful.
amazing
This is HUGE!
Thanks for putting this together. Very, very useful. Do you have a license in mind for it? Are others free to use it as well when they present on Steem and how it all works?
I hereby submit this work to the public domain. Feel free to reuse ;)
They look like they love steem.
That's how I feel about steem! Why wouldn't someone love steem, you post what you like and make some money doing so!
Potent piece of information there, thank you! Namaste :)
well explained! Good job! I'm going to keep your post as a reference, where I can easy get back to.
How do you power down? From what I read as you power down you continue to accumulate "interest". So you'll alwasy have more than you powered one. Can one EVER withdraw everything from SP, even in 2 years time...
Good question, I don't know the answer as I never powered down yet. It is possible that your power balance is decreased right away when you power down, in which case you accumulate no "interest"
well,. that's my point. that's not how it happens. you continue to accumulate. for example at 2000 sp you powerdown about 20sp/week and accumulate about 80. so after 104 weeks you'll have 6000+ than you started and maybemore with the curation and author rewards..this must be addressed :)
There in fact not Steem Power, but VESTS you really have on you balance.
VESTS qty is fixed and you "power down" VESTS.
Steem Power is dynamically risen up because VESTS rise in price vs Steem.
That's a good explanation but then how do i increase my vests?
True (embarrassing) story. When I tried to convert some of my BTC for Steem a week or so back, I thought you had to get Steem at an exchange first to do so. When fumbling around on my wallet with how to get Steem in, and only then, did I carefully read each of the other drop down menus.
You mean I could have just sent it here in the first place?!??
So yeah, this tutorial is awesome. Totally bookmarking as a necessary read for newbies....and I.
Well, don't feel embarrassed about that. The exchange might well have had better rate than the built-in option. Convenience often comes at a price, doesn't it?
Very true on paying for convenience, ie convenience store vs grocery store for food or drink.
This is wery usefull. Ewerybody should know this.
This should be linked to the main page of wallet, so ewerybody could read it, insted of always asking and wondering.
This was great made @peterz keep upp the good work.
omg,you are genius.I throw away my sheet after seeing your cheat sheet
Thanks! I wonder how did you find it? It seems long dropped off all radars
I've created a Russian version of this cheat sheet