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Cryptocurrency Ecosystem => Once Popular Coins (Graveyard) => Other Popular Cryptos / Coins => Steem - Steemit Forum => Topic started by: Domithra on March 17, 2018, 11:43:28 AM

Title: What is the Difference Between Steem, Steem Power and Steem Dollars?
Post by: Domithra on March 17, 2018, 11:43:28 AM

When setting up an account on Steemit, you will discover three different digital currencies in your Steemit wallet; Steem (STEEM), Steem Power (SP), and Steem Dollars (SBD). For contributing to the platform, you can earn the three digital currencies mentioned above as rewards.
 
STEEM
Steem (STEEM) is the cryptocurrency that powers the Steemit network. Steem can be used on the Steemit platform to gain Steem Power (SP) through a process called “powering up” or to buy Steem Dollars (SBD). As a liquid digital currency, it is convertible into fiat and other digital currencies on cryptocurrency exchanges such as Bittrex, Poloniex, UpBit, and HitBTC. STEEM also dictates the value of the rewards that are paid out to users for contributing to the platform.

Steem Power
Steem Power (SP) is the Steemit platform’s internal currency that cannot be traded on digital currency exchanges. Steem Power has two functions. Firstly, it provides users with more influence on the platform to award higher rewards to users and receive higher rewards for curating content on the platform. Secondly, Steem Power provides holders with a share in the Steem reward pool. Hence, there is a strong incentive for Steemit users to gain as much Steem Power as possible through contributing to the network and by converting purchased STEEM into Steem Power.

Steem Dollars
Steem Dollars (SBD) is another internal currency on the Steemit platform. Steem Dollars are effectively IOUs that are worth one dollar worth of STEEM tokens when redeemed. The idea behind the Steem Dollar is to prevent a volatile exchange rate of the platform’s internal currency to deter users from interacting on the platform. The Steem Dollar can also be traded on several major exchanges and has a market capitalization of around $50 million with a daily trading volume of approximately 25 million according to CoinMarketCap.

The way Steemit’s crypto-economy is structured it encourages user activity, and investment, as users benefit financially from contributing and curating content and from purchasing more Steem Power to ensure a larger piece of the Steem rewards pie. The Steemit platform is, therefore, poised to continue to grow in size, which, in turn, will be beneficial for STEEM holders.

Title: Re: What is the Difference Between Steem, Steem Power and Steem Dollars?
Post by: cryptothief on April 14, 2018, 04:35:14 AM

Nice brief explanation on the difference between them. Must admit, although I'm a member, I never really looked into the specifics. Really should read up properly on the details.

Title: Re: What is the Difference Between Steem, Steem Power and Steem Dollars?
Post by: korkorjkk on June 17, 2018, 03:39:27 PM

Thanks Domithra, this is very insightful especially for the New users on Steemit. Keep up the good work of sharing information. I must admit, I have learnt a lot.

Title: Re: What is the Difference Between Steem, Steem Power and Steem Dollars?
Post by: altcoingamer on June 17, 2018, 05:51:27 PM

Thank you for the detailed description... its hard to adjust to things with 1 currency, much less two.   Will give you + Karma since I'm sure lots will find it helpful.

Title: Re: What is the Difference Between Steem, Steem Power and Steem Dollars?
Post by: Judybrown on July 17, 2018, 01:25:54 AM

Very useful information. I really like how you have explained all these terms here. Keep doing the good work.

Title: Re: What is the Difference Between Steem, Steem Power and Steem Dollars?
Post by: junebride on July 17, 2018, 02:43:52 PM

love the thorough explanation! Everything mentioned above is correct! There are certain accounts which allow renting specific number of steem power... it significantly helps with the upvote value!