Steem Cryptocurrency – I Bought 1 Bitcoin Worth of Steem

My first Steem Cryptocurrency investment
This month I signed up for Steemit.com and acquired 1 Bitcoin of Steem. After an extended night time looking random youtube motion pictures I stumbled onto the video beneath. The video is Jeff Berwicks interview with the creators of Steem and how he made over $15k from his first submit on Steemit.

After watching the lengthy video and sorting out steemit i was surely impressed. universal i found it plenty better than Reddit to apply (wherein I percentage some posts from Bitcoin-Millionaire), so I determined to remark and write a few posts that i might commonly do on Reddit. typical the content material high-quality became quite accurate and it became a more wonderful surroundings than reddit.

I then examine the entire Steem whitepaper, and changed into interested more so I converted 1 Bitcoin into Steem (on www.steemit.com) and powered up my account.

in case you are already (or are approximately to join up) on Steemit you could follow me right here steemit.com/@btcmillionaire and i can try and follow you lower back too 😀

So what is Steem?
i'm no longer going to get technical as the whitepaper is a better resource for that however i'm able to communicate high level points.

Steem is:

the primary social media cryptocurrency (that I recognize of).
It has the ability for multiple social media structures to be constructed on pinnacle of Steem (assume facebook, Twitter, Instagram, Reddit, Snapchat, Pornhub and so forth).
The Twitter (known as Zappl), Instagram (called steepshot) & Youtube (known as steemQ) versions are absolutely being constructed as we talk.
in the mean time Steemit.com is like Reddit besides you receives a commission when humans upvote you.
It has on the spot transactions with 0 prices.
half of the blocks launched visit the miners and the other 1/2 goes to content material creators and curators.
the amount of Steem to be had inflates at nine.5% a year.
How does Steem receives a commission to authors and curators?
again the white paper is a better reference for all the information, however here is a simple overview:

there is currently approximately 224,000,000 Steem in movement (from coincap.io) and Steem may be actively traded on Poloniex or another trade for different cryptos.
Steem can also be converted into Steem energy. Steem power is like proudly owning a percentage in the ecosystem.
The extra Steem power you have got the more Steem (or money) you give human beings while you want their content, remark or put up your very own content material.
people additionally get a reward for curating (or liking) the good content first. This allows the first-rate content to come up in everyone’s feed.
You receives a commission 7 days after you post your content material in Steem greenbacks which you could convert into Steem strength or Steem (that you can sell for different cryptocurrencies and cash if you want).
If all of it sounds perplexing, setup an account at steemit.com do some posts, make some Steem and you will get a experience for it. recall it's far absolutely loose to join so that you have nothing to lose. there's also excellent content written on explaining Steem better below the tag steemit.

If short high degree films are your thing then take a look at this out for an intro into Steem:

Why did I invest in Steem?
in preference to being overly verbose here are predominant motives:

The platform is extremely useful for sharing content. there may be cost in getting the targeted Steem target audience to your web page (my website being crypto related) and maybe some value in back links (helping with search engine optimization).
hypothesis at the price going up in the destiny. comparing the modern-day model of social media with the Steem model i'm blown away. fb, Twitter, Reddit and all the others essentially use our content material totally free and promote it to advertisers, while Steem is stored with the content creators.
in which does the value in Steem come from?
At this degree it can speedy soar out of the screen and appear as a Ponzi scheme as there is basically no income going into the gadget (like the different social media systems) in the manner of paid marketing. however, you simplest want to observe the early days of any social media platform and you can see the capability.

commonly only when they reached multi billion dollar valuations did other social media platforms start to monetize their platforms and produce in cash from marketing. I see the same issue taking place for Steem.

So then how do you fee Steem?
I assume the following elements need to be taken into consideration:

The number of users and the increase of the consumer base.
The capability of other social media systems (presently being developed) like Zappl as the Twitter competitor for instance.
The exceptional of the crew developing the programs (i've now not finished enough due diligence to comment on this but).
once those elements are checked out it comes down to comparing them to the historical reference factors for fb, Reddit, Youtube and many others. So Peter Thiel at the beginning invested in facebook for around 10% fairness while it had less than 1 million customers for around $500k from memory and the relaxation is records.

From what i have discovered there are about 171,000 debts on Steem as of today. The market cap of Steem is $224 million today. which means taking place the metric of users alone it is probably on the excessive facet of rate valuation. but it's miles developing fast and the potential for the alternative programs going viral is there.

generally whilst evaluating the rate of an asset i'd upload up all of the capacity destiny cash flows and practice a discount based totally at the minimal returns I want to spend money on that asset (discount coins go with the flow). So valuing Steem is extremely tough as it's far very early stages and the capability destiny coins flows are very obscure.

what's the disadvantage hazard with Steem?
The downside dangers I see are:

there is currently about 171,000 users and the marketplace cap of Steem is over $224 million which means it is better valued than other social media systems at that person base stage.
The increase may want to slow down, forestall or move backwards.
computerized posting bots may want to wreck it.
the alternative platforms like Zappl won't be successful.
it could be difficult to get people to alternate from different social media systems to Steem.
The code won't be stable (i am no longer technical in this location) and it is able to be hacked or have issues.
How will it in the end be monetized? Will advertisers use it (or different methods)?
what's my plan with Steem?
i'm able to record my Steem balance once a month in terms of it’s fee relative to Bitcoin and the USD. This way we can see how 1 Bitcoin invested in Steem is going beyond regular time.

I need to diversify my Bitcoin holdings and no longer have them multi function location. therefore this investment made up approximately 2.five% of my Bitcoin holdings. As of writing this the 1 Bitcoin investment is really worth zero.96 Bitcoins.

in the years in advance i can convert the Steem returned to Bitcoin to (with a bit of luck) help with the Bitcoin Millionaire target.