Hi .... steemit friends !!
This time I discussed the concept of steemit, so that the beginner can understand what is steemit and how to use it, okay no need to basa basi we discuss the article now!
not easy to understand the overall concept of Steemit because its economic fundamentals quite different from other cryptocurrency. Reading the document whitepaper Steemit 44-page thick is also quite confusing head especially if not impatient. The purpose of writing this article to share an understanding of Steemit so far. It should be understood that sy is also just beginning to learn it and not a Steemit expert, if there is one please understand and more happy if you want to help correct it by commenting below this article.
Steem & Steem Power & Steem Dollar
To understand the fundamental concepts of the Steemit economy, we must understand the functions of these three values.
First ... Steem
is the value of units we can buy directly on the platform exchanger like Bittrex, and please note that it does not work like a BitCoin where it is stored as a value asset because every year Steem's total supply increases 2x.
How is a Supply Steam created?
The answer is from Proof of Work when solving a block. Steem can be mined through Windows and mining power is determined based on your Processor, not GPU like Ethereum. So ... Steemit Network starts from 0 supply and based on what's written on its whitepaper: there are about 800 new steems created every minute.
Second ... Steem Power
is the value of the units that can be converted from Steem. For you to re-convert from Steem Power to Steem takes 2 years, gradually as much as 104x payment. Why 104x payment because steem power you convert to steem will be paid every week .. Due to 1 year there are 52 weeks then 2 years equals 104 weeks. This process is called "Power Down"
Advantages Have Steem Power
is we get Steem every time New Steem is created (still remember the above mentioned point that steam supply will keep increasing every minute?) In other word mean ... by converting Steem to SteemPower ... we are guaranteed to get Steem quantity (in Steem form Power) over time running rather than storing steem
Example Analogy Case:
I have 104 Steem Power ... then I click ** "PowerDown ** .. well what will happen is every week I will get at least 1 Steem and more in the week of the next week .. Steem that I get gradually it can be me save, trade transfer or re-entry into SteemPower.
If in the first week I get 1 steam it means that there are still remaining Steem Power that can be melted and the Steem becomes ** "Interest" of every new 1 Steem creation, so the value is still increasing as time passes, from week to week.
Every new Steem creation
90% of the steem will be distributed to the Steem power holder in the Power Steem unit. While the remaining 10% will be distributed to those who contributed in posting articles / upvote and comment. In addition, when we are voting on a post ... the bigger the Power steam we hold, the greater the rewards that will be generated during the creation of the steam.
Third is Steem Dollars.
is very important in the economic success of any company. For that, Steemit has a unit value we call Steem Dollars, which has a fix value (equivalent) with 1 US Dollar.
Is a Double-Blend Supply Steam 2x Fold Then Steem Value Will Drain Over Time?
Really! Only the value of Steem will drain as time passes but the value of Steem Power and Steem Dollar units is not drained. Except in the case of certain cases where very many new entrants buy Steem which triggers steem values soared mainly in the first 2 years where 90% steem supply is locked in Steem Power. Also note that every 3.32years, split reversion will occur 10: 1, every 10 Steems change to 1steem.
(The Analogy of the Parable)
Year 0: 100 Steem
Year 1: 200 Steem
Year 2: 400 Steem
Year 3: 800 Steem
Year 3.32: 1056 Steem
Well .. in the year to 3.32 = 1056 Steam will occur splitting and the quantity of Steem unit will return to 105.6 Steem
So .... the next question what is the purpose of the spelling process? The point is that the value of Steem distributed to Steem users who are actively committed to blog posts and SteemPower unit holders are maintained. All these complexities aim to:
1. We can buy and sell
we can always Steam easily as cryptocurrency
2. We can commit for the long term
This is to ensure cability so there is no panic sell that can lead to market destruction.
3. If we commit to long term
That's for sure if we are committed is certain we will get good results and prizes
4. For us to contribute
(Post, Voting, Comment), we will also be declared.
For that .. indirectly, every Steemit user will ensure that the Steemit site is always lively, making it a great success including introducing to people about Steemit and encouraging them to participate.
If we spend time in the forum Reddit / Kaskus or other social media, not necessarily everyone can enjoy the benefits. But unlike users who spend time in ** Steem **, they they will get rewards only because they actively contribute in social media. One interesting thing before sy ending this article is, to start in Steemit, should not be required capital to buy Steem. You can start for free, just by signing up, we've been given free Steem Power which is worth $ 3- $ 10. ** Is not this amazing? **
How friends are a bit complicated right?
But if you have long will understand, and feel how fun to use Steem.
and until here I explain it may be useful for fellow steemit friends.