Hi everybody!
So, due to my total ignorance of how this all actually works, I did some digging and googling, and decided to put it all into some sort of perspective, for others who, like me, basically have no clue.
So first of, Steemit is a social network. Pretty much like all other social networks, with the huge difference that Steemit remunerates content creators, as well as all the people who comment and like (upvote). I think that’s awesome, considering Instagram is trying to make me pay for advertisements to have my content seen. But a few questions did pop up…
Where does the money come from?
If we can just agree that blockchain-based software is not easily corrupted, then adding to that as a whole naturally increases the net worth of the whole, yes? That’s basically it, right? By creating unique content, I add worth. That’s all I really need to know, anyways… Paper currency is mostly a shared dream anyways, it has a certain worth, because we all dream the same dream. So now, we’re all dreaming this dream. Fine with me.
What’s the difference between all the Steem Thingies?
Steem
Steem are like stock options, bought and sold on the open market. Because more are created everyday, they loose worth, so you shouldn’t save too many.
SteemPower
… is like investing in the company. You get a piece of the pie, which continually grows in worth…
Half of what you receive for your posts is in SteemPower.
Steem Dollars
… are a real currency. You can cash out, but it’s smarter to keep your money in the network, because then it kinda earns interest and grows in worth, like a savings account.
So, thats Cora explains SteemIt. How did I do? I’m a hopeless case with money and investments, I just want people to feel happy and do yoga, so I did ok. I’m sure most of you are laughing your butts off, because there’s a load more to it, but for people like me, who are here for the community, this works just fine :)
Have a wonderful New Years Eve, everyone!