What Exactly Is This New Cryptocurrency Sensation ‘Steem’?
Cryptocurrency – It doesn’t take someone with an IQ of over 150 to come to a conclusion that social media and capturing public interest is critically importance, whether it is from a digital currency’s perspective or a movie’s. Thousands of digital currencies have come and gone but no one has been able to achieve the success quite like Bitcoin. Bitcoin clearly captured the public imagination and it continues to do that as proved by its market cap of US$10bn.
Bitcoin’s BTC closest competitor Ethereum also rose to prominence all of a sudden in early 2016 due to the genius of its founder Vitalik Buterin. Now it has a market cap of US$1.2bn.
Now we have a new star in this community. Few days ago, a new cryptocurrency called ‘Steem’ rose to prominence all of a sudden by ranking at number 3 after its price rose from $0.25 to $4.00 within a month. Steem’s market cap stands at US$360m now and the company is making waves.
Steem is a blockchain-based social media platform which has changed the entire dynamic of this relationship. Using Steem people can upload content and be rewarded with the eponymous cryptocurrency Steem after user Up-vote their post. Steem rewards every single user of its platform who receives a positive feedback, be it a like or comment.
To prevent the users for abusing this practice like buying thousands of fake Twitter followers, Steem has taken several measures. This cryptocurrency has complex structures with three interlocking tokens in one. All three of them are interdependent and interwined.
Steem is a cryptocurrency similar to Bitcoin, where miners mine in order to win Bitcoins as a reward. But the comparisons end there, as Steem has been developed to prevent the emergence of mining pools. Steem’s algorithm rewards the likes, comments and publishing of content in a geometric progression rather than on a linear basis.
Unlike Bitcoin, Steem isn’t a long-term store of value but a continuous reward system which seeks to provide rewards for creative brain-power of humanity on a decentralized cooperative basis and not harvested by a small matrix of digital monopolies.