As a Steemit Promoter in Uganda,i am always asked similar and familiar questions like
How do i withdraw the money
How do i comment
What is Steem Dollars,Steem etc
Whenever i introduce a person to Steemit,i always try as much as possible to know their perception or information level on Crypto or Bitcoin.
I usualy ask open questions like
Have you ever heard of Bitcoin or cryptocurrency??
The answer to that question makes me adjust on how i am supposed to talk to them about Steemit.
For example if some one knows something slight about Bitcoin,it is easier to explain Steemit.
Let us get back to today's topic of these main terms that we use daily on our platform here.
- Steem
- Steem Dollar
- Steem Power
- Power Up
- Power Down
You might be wondering how a new person who has not even signed up can ask to know these terms.
I have always had fascinating conversations with people who are really interested(especially those who know about crypto or bitcoin) in Steemit that some times i get into lengthy talks with them and i find myself explaining all these terms to them!
In the next sentences below i will be telling you how summarized my definitions to them are and you can borrow these definitions too.
1. Steem
It is much easier to explain this to someone who knows about crypto or Bitcoin
Steem is the digital currency that Steemit platform runs on,it is like Bitcoin
It can also be traded for Steem Dollars and transfered to other Steemit accounts.
For example if you would like to appreciate my work or any one else's work,you can just send Steem to their account.
Steem is also traded on many exchanges,this means you can buy it and Power Up(will explain this later)
2. Steem Dollars
Steem Dollars (SBD) is the currency of the platform.It is what people send each other when they upvote posts on Steemit.
Steem Dollars are also pegged to the 1 USD.Steem Dollars can also be traded with Steem,can also be trade don exchanges or for commerce.
If you hold your SBD ,you can earn interest.
Now you might still be confused of the real difference between Steem and SBD!
The basic difference is
Steem is the currency of the blockchain that Steemit is built upon.
Steem Dollars is what People are paid in ie our internal currency,each upvote is measured in Steem Dollars.
If you are still confused check out this article by @donkeypong
https://steemit.com/steemit/@donkeypong/still-confused-by-steem-steem-dollars-and-steem-power-the-power-plant-analogy
3. Steem Power
This is my best part when explaining Steemit.
I always ask them how long they have been on Facebook!
I then ask if they have any shares!!!
After i give them this definition below.
Steem Power is/are the amount of shares or influence you have on the Steemit Network.
The more Steem Power a user holds, the more they can influence the value of posts and comments.
Let me show you a screen shot of one of the biggest Steem Power Holders here on Steemit.
As you can see above,@bloctrades has over 2.8 million Steem Power and the influence is enormous.
If you happen to recieve an 100% upvote from @blocktrades you recieve a whopping 240 usd..!!!! OMG!!!!!!!
Let us compare that to my steem power as shown in this image below
I have only 100 Steem Power!!! and that translates to my upvote power(influence) of 0.001 $..!!!
So folks keep Stacking more Steem Power by a process i will explain below.
Also all posts you write are divide into 50% Steem Power and 50% SBD.
4. Power UP
This is the process of converting Steem into Steem Power to gain the enormous influence as you saw above.
It is an investment,because you now own shares on Steemit.
Also when the price of Steem increase you can benefit because you already owned Steemit in form of Steem Power.
You first have to convert your earned SBD to Steem in the internal market.
After you have received you converted Steem,you can now Power Up as shown in this image below.
Source
5. Power Down
As the word(down) says it,Power down is coverting your Steem Power back to Steem.
It is like a way of withdrawing your Steem,especially if you need the money urgently!
It is withdrawn in weekly payments at a rate of up to 1/13th of the account's total Steem Power.
The account will lose its voting influence(yes becuase you are reducing your influence!) in proportion to the Steem withdrawn
Additional Reading
https://99bitcoins.com/making-money-with-steemit-steem-dollars-and-steem-power-explained/
https://en.wikipedia.org/wiki/Steemit
https://steemit.com/faq.html#What_is_the_difference_between_STEEM__STEEM_Power__and_Steem_Dollars
https://steemit.com/steemit/@jsutich/what-is-the-difference-between-steem-and-steem-dollars
https://steemit.com/steemit/@donkeypong/still-confused-by-steem-steem-dollars-and-steem-power-the-power-plant-analogy
https://steemit.com/guide/@cryptos/understanding-steem-power-and-how-to-power-down-your-steem
Let me hope with this illustrations you can now explain this terms to any one new person.
If you liked this post upvote and resteem
You can also check out my recent article of me describing in detail the history of my country Uganda below.
Uganda Gets Independence fromBritain in 1962
Uganda's First President Edward Mutesa II
Uganda's Second President Milton Obote
If you find this past 7 days please do not upvote,look for my recent post here @jaraumoses and upvote them.
Love
Jarau Moses
@jaraumoses