According to CoinMarketCap, there are more than 1,000 types of cryptocurrencies in the world. Some of them don’t have any particular value and can be created by any developer knowing the blockchain technology as their own coin, while other cryptocurrencies have useful features and are based on interesting ideas and projects. The latter attract investors more than the former because people understand what stands behind the digital coin. One of such good digital currencies is Steem, contributing to the development of Steemit – a website with a million audience. Let’s have a closer look at what stands behind Steem and what its prospects are.
What the Steemit blogging platform is
When posting something on social media, authors can only hope for likes and shares. Nobody is rewarded for the content and applicability of posts. Making money in a private blog is only possible through advertising and promoting goods or services. Founders of Steemit didn’t like such a state of things and invented a social platform where all bloggers can receive appropriate remuneration for their effort.
The Steemit project was launched five years ago. The platform is based on the blockchain technology of the same name, which enables authors to publish, store, and secure their content and other information including transaction data. The technology also makes it possible to allocate remunerations to the authors of posts. Transactions are carried out in Steem and Steem Dollars, the two active internal cryptocurrencies, as well as in Steem Power, a passive one. An important part of the social media platform is the /Steemit web interface where participants receive digital currency for each post.
What is the point of Steem tokens, Steem Dollar, and Steem Power?
A Steem coin is the main liquid currency on Steemit, which is used for exchange, payments, or trading. Every day, the platform generates new coins -75% of them are allocated among supervisors (content reviewers) and authors, 15% are given as a reward to Steem Power (indicating the owner’s influence) holders, and 10% are paid to advisors (miners) who generate blocks.
Virtually from the project start, the Steem digital currency reached the first historical peak and amounted to $4.34 (with a capitalization of $3.3 million). During the following two years of quotation, the currency sometimes rose up to $1, sometimes it dropped. The second peak was reached in January 2018, when one Steem cost a bit more than $7 (capitalization of $1.8 billion). Currently, the cryptocurrency has a value of a bit below $1, but brokers predict its stable growth in 2023-2025, considering dynamic rate fluctuations.
Steem coins can be exchanged for Steem Dollars (SBD). Initially, Steem Dollars were converted to US dollars at a 1:1 ratio (1 SBD = 1 USD). However, when the currency went public, the price was controlled by the market, and the peg disappeared. Today, the cost of 1 SBD is approximately 8 USD.
Steem Power (SP) is equivalent to Steem in its price, but it is used for other purposes. Steem Power is a unit showing the degree of influence that an author or a supervisor has on the platform. The higher SP is, the more authority the voice of its owner has. For example, if a user with a rating of 100 SP likes a post, its author will receive a greater reward than if a person with 10 SP votes for it. Thus, SP is directly connected with Steem and SBD. The reward system for the participants is based on these three indicators.
What are the prospects of Steem as a cryptocurrency on a blogging platform?
The platform is still active and developing after five years of its successful operation
Over five years of operation, the platform has been enriched by more than 1.2 million active users from different parts of the world, who share their knowledge and get paid for that. Every minute, 10-15 posts appear on the website, and the most popular ones can earn up to $1,000 in one week or even one day.
Obviously, such activity generates high traffic. According to semrush.com, organic traffic on Steemit amounts to 2.5 million visits per month with a steadily growing schedule, and similarweb.com shows that the total number of users visiting the platform is around 6.9-7.5 million people.
According to different sources, Steemit’s domain authority is rather high. According to estimates by websiteseochecker.com, its authority is 89, while semrush.com ranks it 77 out of 100.
These figures imply the platform’s high significance, high-quality content, popularity among users, and their trust in it. To put this into perspective, the authority of medium.com is 88, and the authority of The Times is 79. Even a hacker attack in 2016 and a change of owners in 2023 didn’t hinder the growth of this social platform. Therefore, we can say that Steemit has perspectives and opportunities for smooth development.
Cryptocurrencies are on the rise
Despite the fact that Steem ranks #152 in the cryptocurrency world ranking, it has managed to bypass Ethereum and Bitcoin, the titans of the digital market, in the number of transactions. This has happened because there is no fee charged on Steemit, and users made small payments. This policy allowed Steem to quickly gain momentum at the start.
As we said above, the rate of Steem currency is changing by leaps and bounds which is typical for any digital money. Naturally, five years ago, the emergence of the new currency on the market kindled investors’ interest resulting in its unreasonably high price. The rate grew to its peak twice, in 2016 ($4.34) and 2018 ($7.28). After that, there was a consequent backslide, and Steem was at the bottom with the rest of the market for two years. In 2023, the currency price was within $0.12-0.38, and at the beginning of 2023, it held steady at $0.8-0.9. Now, the rate is slowly approaching a reasonable price that reflects the value of Steemit as a platform, product, and service.
The monthly market capitalization of Steem is more than $300 million, which speaks for this cryptocurrency’s prospects as an asset. Investors are interested in buying this digital money.
As a rule, the cryptocurrency price is rising if the popularity of a project grows. Experts speak favorably of Steem as a social platform and make predictions about its sustainable advancement. Steem Digitalcoin forecasts that the average price of this digital coin will amount to $1.63 in 2023 and up to $2.54 in 2025. In 2028, its rate will reach $3.95.
Specialists believe that the Steem digital currency has a stable future if the platform’s security and reliability level will increase along with its development. Steem will secure its position if English-speaking people are not the only users that join the project and if additional ways to earn the coins emerge. Indeed, the Steemit platform has a future – users are interested in it because it allows them to keep their blogs, share knowledge, make friends, and have a steady paycheck. Nowadays, businesses should ask experts for IT development solutions in order to improve their financial processes. Andersen is a software company with a full cycle of services. For over 14 years, their specialists have helped companies modernize their businesses by developing efficient digital IT-driven solutions.