not easy to understand all the concepts Steemit because the economic fundamentals are quite different to the other cryptocurrency. Read the whitepaper documents as thick as 44 pages Steemit which is also quite real headache especially if impatient. The purpose of writing this article to share my understanding of Steemit. It should be understood that I also recently began to study and not a Steemit experts, if there is something wrong, I would be happy again if you want to help correct it by commenting below this article.
Steem & Steem Power & Steem Dollar
To understand the fundamental concepts Steemit economy, we need to understand the function of three values.
1. Steem
Steem is the value of the unit which can directly buy in the exchanger as Bittrex, and should be known that it does not function like Bitcoin where he was kept as an asset because every year the value of total supply Steem increased 100%.
How to Supply Steam created?
The answer is of Proof of Work when solving a block. Steem can be mined like windos channeled through some OS, Linux, Ubuntu and mining strength is determined by your processor and not the GPU like Ethereum. So Steemit Network starting from 0 supply and based on what is written on whitepapernya: there are approximately 800 new steem created every minute.
2. Steem Power
Steem Power is a unit value of which can be in conversations from Steem. For your conversations back from Steem Power to Steem takes 2 years, slowly starting to as much as 104 times the payment. Why 104 times payment ?? because your mouth power steem steem konversasikan to be paid every week .. in one year there are 52 weeks of the second year is equivalent to 104 weeks. This process is called as "Power Down"
Having Steem Power benefits are we going to get every time Steem New Steem created, the meaning is the conversations Steem to SteemPower ... we are guaranteed to get the quantity Steem (in the form of Steem Power) that it more as time goes than ente save Steem.
Example:
I have 104 Steem Power. then I click on "PowerDown". So what will happen ?? is that every week I would get at least 1 Steem and more in the weeks onwards. Steem I got gradually can I save, transfer, or exchange traded back to SteemPower.
If in the first week I could 1 Steem. means that there was still some 103 Steem Power again anticipant For thawed. Well ... 103 Steem Power is still a "Interest" of each new creation Steem 1, so the value is still increasing as time passed, from week to week.
Every creation of new Steem then 90% of steem will be distributed to the holders of power in the unit Power Steem Steem. The remaining 10% of it will be distributed to those who contribute to post articles / upvote and comment. Moreover, when we upvoting on a post. the greater the steem Power which we hold, the greater the value of the rewards that will be generated when the creation steem.
3. Steem Dollar(SBD)
Stability is very important in the economic success of any company. To that end, Steemit has a unit value that we refer to as Steem Dollars, which has a fixed value (equivalent) to 1 US Dollar.
Is Always In The Steam Supply doubling the value Steem will be reduced over Time Elapsed???
It is true! Only Steem value will decrease as time passes but the unit value Steem Power and Steem Dollar is not reduced. Except in certain cases where it is a lot of newcomers who bought Steem trigger steem value surged especially in the first 2 years of which 90% supply steem locked on Steem Power. They should also know that every year 3:32, split reversion will occur 10: 1, every 10 Steem turned into 1steem.
analogy 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 Steem will happen splitting and quantity Steem unit will return to 105.6 Steem
So the next question what is the purpose of the enactment process spilitng ??? The point is that value which is distributed to the user Steem Steem are actively committed in blog posts and holders of units Steem Power is maintained. All of these difficulties is aimed at:
1) buy and sell Steem easily as cryptocurrency
2) commit to long-term future and ensure stability so that there is no panic sell that can lead to destruction of the market.
3) If we commit For long-term future, then we will get the reward.
4) contribute (Post, Voting, Komen), we will also get rewad.
therefore, indirectly, each user Steemit Steemit will ensure that the site is always popular, making it a huge success including exposure to people about Steemit and invite them to participate.
If we spend time on social media forum Reddit or other, not necessarily every person getting benefits. But unlike the users who spend some time in Steem, they will get their just rewards due to actively contribute to the social media steemit. One interesting thing before I end this article is, to be able to start in Steemit, should not be required capital For buying Steem. You can start for free, just by signing it, we've given free Steem Power that is worth $ 3- $ 10. Is not this amazing?
as an additional reference I include a link that contains a lot of guides steemit