Steemit is a blogging and social networking website that uses its Steem blockchain-based rewards platform where user accounts can upvote, posts and comments similar to other blogging websites and the authors who get upvoted can receive a monetary reward in a cryptocurrency token named STEEM and US dollar-pegged tokens called Steem Dollars. Users can also get the reward for curating popular content. People often get confused about Steem, Steem dollar, Steem power.
STEEM
Steem is the liquid currency(like Bitcoin, the US Dollar, the Euro, etc) used in Steemit. It’s like the bricks used to build Steem Dollars and Steem power. Steem can be transferred, spent, traded, or Power Up into SP. The exchange markets determine it's value which can fluctuate. The value of steem can go down at about 7 cents and as high as $4 USD. Everything regarding currencies here on Steemit is rooted in the Steem Currency.
The good thing about steem is, it doesn't require any interest from our wallet.
STEEM POWER
Also known as SP in short, is basically token symbolizing how much influence you have inside the Steemit platform. If you have a lot of SP your upvotes will count more and will award different authors SP and Steem dollars as well. Steem Power is Steem that has been powered up. This can be done by clicking the down arrow next to the Steem in your wallet and selecting power up. These are always one to one, meaning that 1 Steem = 1 Steem Power when powered up. The more you have the steem power, the more money you give to authors with an upvote as well as the greater the curation rewards you can earn. There is a very small 'interest' rate earned by holding Steem Power. In terms of withdrawing steem power, it is locked in. That means it can't be immediately withdrawn to spend. To unlock it you have to start a "Power Down". It takes several times.
STEEM DOLLAR
Steem dollars are tokens which are more price stable. They represent an approximate value of about $2 each. This is what people send to one another when they upvote posts on Steemit. Steem Dollars can be used to power up which is in essence investing in the future of Steemit. The unique way to create more SBD is through the content creation. The authors receive their payments in STEEM Power (SP) and Steem Dollar (SBD), and they can select the percentage of each one, with 50% of steem power as the minimum.
There are so many possibilities with Steem Dollar. You can spend these in the virtual economy or you can sell or transfer them into Steem, Bitcoin, or other currencies.The benefit of Steem Dollars is that business can accept them more comfortable since they have a more stable value.
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Best of luck with Steemit.
