The concept is fairly intricate and is propped by the blockchain based technology. If you are not familiar with the blockchain and the pinup currency BitCoins head over here and familiarise yourself. Chances are you will be hearing more and more about blockcain tech.In essence though:
- The blockchain based tech behind Steem creates a virtual currency called Steem dollars.
- The value of the currency is dependent on the popularity of the Steem network and hence all the digital assets it owns.
- Steem is then able to distribute Steem dollars to the deserving platform users, who can swap it for BitCoin and subsequently exchange into any major non-virtual currency.
- No Steem dollars don’t grow on virtual trees, but are made from great content & enough reader consumption around it.
- The value of Steem dollars will continue increasing as long as it remains useful and scarce.