I try to explain everything, but the fact is, there is a LOT to explain. So, I've decided to create a one stop shop for the most popular questions I've receive about Steemit. This is my attempt to remove the fog! I'm going to cover everything from the origin of money, to the origin of Steem, to ways the platform is being used to create meaningful change in the world. I've compiled all of the best information I could possibly find, compacted it, and put it all in one convenient location. You lucky bug you!
So, you're not going to be able to grasp the concept behind Steemit unless you have a basic understanding of the way currency in general works.
If I have $1, but I am the only person in the world, does that dollar have any value? No, you minus well burn it for warmth. Now, say there are 2 people in the world. Me and Chris. If I have $1, and Chris will accept that dollar in exchange for a slice of bread. Then, that dollar becomes valuable. So in essence "money" is the faith that the collective majority of people have in it. Pretty strange, huh?
As for the origin of money... Currently, the majority of currency is printed on paper. It only works because there are people who accept it. The reason cryptocurrency is revolutionary, in my opinion, is because it is backed by 1 exact number. That exact number is always attached to that 1 unit of currency. No matter what happens to that unit of currency, it will always have the same number attached to it. Plus, anybody can see where that unit is at any given time and it is instantly transferable anywhere, without the use of a middleman (bank).
So, Steemit has it's own cryptocurrency. This cryptocurrency is called Steem. There is always "Steem" being mined (mining is the process in which the algorithm behind each unit is being revealed). When somebody up-votes your post, a portion of this mined Steem gets directed to your account.
Imagine a gold mine... There are guys working hard all day, digging for gold. Except, at the end of the day, the gold gets distributed where the community deems is most appropriate.
This is essentially what Steemit is. Except the gold is "Steem" and it is appropriated by the community through "up-votes".
~If you are interested in a more detailed explanation of the economics behind Steemit, @andrarchy does an incredible job of explaining it in this video.
~If you want to dive further into the realm of crytpocurrency I recently made a post describing cryptocurrencies in layman's terms!
Get it? Good!!
Well my good friend that is up to you, but here is an incredible example of how the community has come together to help someone in a meaningful way. Recently, @creationlayer created a post explaining the situation of a homeless man @brookdemar. Brooke found himself in some tough waters, but we were able to come together as a community and raise $8,000 to help pull him out of the rut of poverty. That is the power of this platform!
Another thing that I find interesting is this makeup tutorial, which earned a whopping $26,000. I guess the ladies really dig make up.
The rule that I find most important is, post about the things that you know about, care about, and are passionate about. If you end up making a few bucks from it, great! If not, you have shared valuable information with the community. It's a win win for everybody!
