The STEEM cryptocurrency is based on the social media and content-focused Steem blockchain and is used to power the Steemit social media platform by incentivising individuals to write content.
It is different from other cryptocurrencies such as Bitcoin because it cannot be mined. The only way users can gain STEEM is by contributing to the Steemit network, and the cryptocurrency can only be used to power the platform. However, once a user has earned their STEEM, they can exchange it for the fiat currency of their choice.
The social media platform Steemit is similar to Facebook and Twitter. It encourages users to share and post content, and when this happens, users will gain STEEM tokens. This strategy allows the media platform to stay popular with its tech-savvy user base.
The benefits of STEEM cryptocurrency
More power
If Steemit users earn STEEM, they will have greater advantages over those who do not own any. The platform is decentralised, meaning most decisions are made through voting systems on the platform where users with more STEEM will have a greater effect on the voting outcome. Voting on Steemit falls into two simple categories: upvoting and downvoting. When users own a lot of STEEM, their upvote will be stronger, meaning they hold more influence over the vote.
Anonymity
One reason why people join the cryptocurrency space is the desire for privacy. Banks cannot provide full anonymity, but STEEM encrypts all data and user details to ensure that no one can find out the identity of an account owner. Even the nodes used in the STEEM network that are involved in confirming all transactions are only able to check the balance of a user and not their personal details. This privacy encourages users to engage with STEEM cryptocurrency and the platform behind it, Steemit.
Decentralised
Banks and traditional payment methods are centralised, meaning they are owned and controlled by a central organisation. Having this centralisation means that third-party seizures can occur. If there is money in a bank account, this can be targeted and frozen. However, if you put your investments into a cryptocurrency such as STEEM, it will be completely hidden from third parties. Because blockchain technology is decentralised, the only person who can access your funds is you.
Widely accepted
STEEM cryptocurrency is also legal and regulated in many major countries such as the USA and Austria. Whilst many countries feel strongly against crypto, the blockchain network is still legal, and these countries are pursuing the regulation of STEEM and similar cryptocurrencies. Because the cryptocurrency is legal in these countries, it means users can freely exchange their STEEM for the local fiat currency.
Conclusion
The STEEM cryptocurrency can be gained through the Steemit platform. Owners can then use this cryptocurrency to their advantage. It can be used on the platform to make better decisions or it can be used for fast payment transactions. Either way, this is a very beneficial cryptocurrency that everyone should have their eye on.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.