Why Investors Should Pay Attention to Steem
Social media has been slowly dominating more and more of our attention over the last decade and a half, but no one has ever really questioned the mechanics that guide the way it functions. At its core, networks like Facebook are about having advertisers pay for the audience’s attention, and the network takes a middleman’s fee.
Changing Things Up
However, this model is ready for disruption. Blockchain startup “Steem” is are turning this model on its head by allowing for content producers to get paid for the value they add to the ecosystem.
The tokens work on a Proof of Work theorem where Steem tokens can be converted into Steem Power. Steem Power can be locked into a vested fund, which generates interest and allows for a user to upvote content.
The model helps advertisers and the audience as well, because it creates a form of “efficient market” for content. Readers end up more satisfied with the content, because the voting system is more likely to suit them, and this allows for advertisers to better target.
Steem’s Core Idea
Steem has come into limelight and fallen out of favour several times, however it has a very compelling use case for investors to consider. Social media has been the talk of the tech world ever since MySpace achieved some level of world domination (and later faded). At the same time, Uber and AirBnb have taken the world by storm with their shared economy models. So it is only natural these ideas would be combined at some point.
So as a combination of the shared economy, social media, and blockchain technology, Steem is clearly well-positioned in terms of trends. There are several other companies operating in the same “social” area of the sector, each with their own angle on this. The common criticism of Steemit’s platform is that the “whales” have too much influencer power (Steem Power) and this makes it difficult for smaller content creators to get their start.
Mostly, success is about attracting more users and content producers to the network in order to cultivate next level network effects. All projects have its issues, but the firm seems to be moving towards the right goalposts.
The Buying Case
There are two ways to get Steem: you can either purcahse it or earn it. Purhcasing it is a lot quicker than earning it, since you need to build a platform and post content on Steemit to get more Steem, but it could be worth doing both if it suits your skills. For those of you looking to buy, Bittrex and Poloniex both offer Steem for sale.
Steem has been trading flat for the last few months, and the main reason to buy is if you think the “crypto-winter” we are currently in is likely to end in the near future. Steem has danced in and out of the top 10 altcoins in terms of market capitalization, and the current rankings are also the result of limited attention being given to this sector and valuations not being as perfectly efficient as before.
Featured image courtesy of Shutterstock.