I have finally gotten to a point where I understand Crypto-Currency well enough to start explaining it to friends and family, to give them a chance to share in the profits ahead. However when I try and explain Crypto-Currency, to average to slightly below average tech people, they just seem confused... but then...
That light bulb going off in the mind! An average person needs an analogy to something they are familiar with. The answer to that is to think of each Currency as a competing company. When I look to purchase stock I look at several factors, but the main 3 are these.
1. The Product
All Crypto-Currency "companies" are competing for a share of the massive Trillions of Dollars that are currently spent between international trade! https://news.bitcoin.com/bitcoin-blockchain-will-shape-future-international-trade/
Let's do Steem vs Bitcoin in just this market!
**-Steem Advantage- 3 sec transactions vs bitcoins 10 mins?- 2 hours? 10hours???
(OMFG THATS WAY TO LONG)
https://blockchain.info/charts/avg-confirmation-time
-Bitcoin Advantage- Name recognition from being first, withdrawals to bank accounts, ATMs (The last 2 are 100% achievable for steem!)
As a bonus some Crypto-Currencies such as Steem has Steemit.com a website fairly similar with www.reddit.com a $6 billion dollar valuation, Steem at the time of writting is roughly 250 million that leaves a 24X potential based on Steemit.com alone, not considering the international trade market! Plus then you add in all of the apps that can be built on the blockchain and sold for Steem, and then you really start to understand the massive potential of steem!
2. Dividends
When buying real stocks you'll find out some companies pay some of their profits to people who hold their shares and some companies don't. This is true for Crypto-Currency as well, and Steemit is one of the few that pays dividends, 15% of all new coins introduced to the market place get divided up between those people who hold Steem Power! Also a reason not to leave to much steem in your account unless you are planning on spending it in the immediate future.
-Steemit- That 15% of newly created coins turns into rougly 1.5% return on your Steem Power!
-Bitcoin- None you lose value due to inflation ( It's also a problem for Steem as well but that's what Steem Dollars are for!)
**3. Voting Power **
Whenever you purchase stock of company you get that % of voting power at the annual shares holder meeting. While they are obligated to send everyone holding stock even that person holding just 1 share, an invite. Most people like myself never attend, because the chances of our vote mattering are just slightly better than it mathematically mattering for a national election. 1/1,000,000 or greater
-Steem- again even if you have very little voting power today every vote actually matters much more. Since you will be rewarded for each vote! And even if your getting discouraged by the current dollar amount of your voting power, you must think of the company's long term potential in competing not only in the international trade market, but against Facebook and Reddit as well! You may one day own a nice little sum of the next $430,000,000 company. https://www.google.com/search?q=facebook+valuation&rlz=1C1ASUT_nlUS419US419&oq=facebook+valuation&aqs=chrome.0.0l6.3109j0j9&sourceid=chrome&ie=UTF-8
-Bitcoin- There is a independent company trying to make a micro pay company similar to steem, but not free so I absolutely hate it and have no desire to link it here, or even say the name! If we lose to them I'll be in denial for a couple years.
I hope this helps you talk about crypto-currency with those you know! There are several other factors one must consider when buying stock such as price earnings but so far none of the current Crypto-Currencies really have revenue, even though there are opportunities for Steemit especially through the App market place, as well as Ethereum. Ill get into a few more details about Steem verus some of the more advanced block chains such as Ethereum. Today I just wanted to start easy and make the comparisons to the big names, Bitcoin, Facebook, Reddit. Our competition and we will take them down! Remember if you own any Steem or Steem Power we are all on the same team, working for the same company with the same goal to make Steem Global!
Thank you for your Time, Up Vote, Resteem, Follow!
I'm following anyone who follows me this month to help us all, grow our bases, together!
https://steemit.com/steemit/@allprowi/follow-me-and-i-will-follow-you-let-s-grow-our-steemit-community-base-together
Also I plan to do more interesting posts regarding the awesomeness of this world such as this post ... Unless that light blub goes off again!
https://steemit.com/travel/@allprowi/when-the-beauty-of-this-world-forces-me-to-stop-and-take-pictures-san-rafael-swell-utah-usa