You’ve likely heard of the social media website Reddit.
Essentially, users post articles about various topics to the site. Readers can then vote on articles they like or dislike. Posts that receive a lot of positive attention are then pushed to Reddit’s front page.
Well, Reddit now has a new competitor called Steemit.
Much like Reddit, Steemit users can contribute content to the site.
Only Steemit content is based on cryptocurrencies. And if this content receives votes from readers, the writer gets rewarded in a special cryptocurrency called Steem (STEEM).
Steem calls this system “Proof of Brain.” With this system, there is no “mining” like there is with bitcoin .
The structure is a little complicated. But here’s a simplified version of how it works.
It involves three tokens:
A. Steem: This is a regular cryptocurrency that can be exchanged into bitcoin and dollars immediately through the usual exchanges, notably Bittrex
B. Steem Power: This is essentially a long-term version of Steem. It pays a small amount of interest of 15% of the additional annual in steem (which is currently 9.5% a year). It also gives users influence, making their up-ratings of contributions to Steemit more valuable
C. Steem Dollars: This token aims to be worth exactly $1. But it’s not convertible directly into dollars. You can only convert it into steem, with a delay of 3½ days.
Now, there’s a complex exchange system in place between these three tokens. But for our purposes, we only need to know why steem itself makes a strong play right now…
Apart from the general bull market in cryptocurrencies, steem will gain value as more people contribute to Steemit.
That movement will accelerate as large social media “influencers” — or big sites such as BuzzFeed — decide that steem-based rewards for their content can pay them more than advertising.
Just as Reddit makes more money if more people use it, Steemit (and the price of steem) will rise in value by gaining more content.
STEEM is already a $65.5 million system. But I expect it to grow much larger. It is yet another way in which cryptocurrencies can be used to generate real-world value.
To buy Steem (STEEM), buy bitcoin ( BTC ) in your wallet for the amount you want to invest.
Then exchange the BTC through the Bittrex exchange for STEEM. When you wish to sell part or all of your STEEM holding, exchange them for BTC through the Bittrex exchange, and then sell the bitcoin for dollars through a Coinbase credit to your bank account.
CALL TO ACTION:
Buy Steem (STEEM) over the Binance or Bittrex exchanges using your bitcoin wallet at no more than $0.20
Stay ahead of the masses,