What is the difference between Steem Dollars (SBD), Steem and Steem Power (SP)?
This question bugged the hell out of me the first few days on steemit and everywhere i tried to find an answer (oh yes, the Internet is filled with answers, I know), it was always made impossible for us beginners to understand with complicated technical term and comparisons and trades and trading platforms and what not!!
While those information are eventually important and we all should know them eventually, at first, as newbies, we need to understand the very basics of these three terms. Once we get used to these, and understand that these terms should not always be interchangeable, feel free to proceed to and learn the more technical details.
So let's get started. STEEM DOLLARS (SBD) are basically supposed to be equivalent to USD. That is 1 SBD = 1 USD.
STEEM is the actual cryptocurrency (you know, like bitcoin, ripple, litecoin etc) of the platform. This means if you are a cryptocurrency trader, STEEM is what you will be trading. (Will not go into anymore detail about this to avoid making things complicated).
Now, the price of STEEM on the market fluctuates, like every other cryptocurrency around. Say for example, you have 3 Steem Dollars (SBD) in your steemit account and the price of STEEM right now is USD 1.5 in the market, you should be able to convert your 3 SBD (which is essentially equal to USD) into 2 STEEM. Similarly, if the price of STEEM is ** USD 1,** you can convert your 3 SBD to 3 STEEM.
Now that Steem and Steem dollars are out of the way, What is STEEM POWER (SP)?
SP, in the simplest of terms, is STEEM. 1SP = 1 STEEM As simple as that.
What is the difference then? Well, SP is STEEM invested for long term. That means, whatever SP you have in your steemit account, even though they are essentially STEEM, you can not withdraw them whenever you want. After you begin the withdrawal process, it takes takes a long, long time (Thus the term Long Term) for the withdraw to be complete. How is SP an investment? This is very simple. The more SP your account has, the more your votes will be worth and thus the more you will earn from Curation Rewards by upvoting posts. It's like when you have money in the bank and the bank gives you interest, except, on steemit, the interest is you curation reward.
That's it guys. Hope this post helped. Start Upvoting to increase your Curation Rewards. Resteem this post and maybe more people out there might be benefited.
If you enjoy creative and unique memes, photography, food, health tips, or cryptocurrency, please make sure to follow me at
If you would be kind enough to support me, you can donate to the following :
Bitcoin : 1CvZsKeSHwN5xLnEr6TmAUXjFbSpemogQd
Litecoin : LbBvWXDj1mnuUxH1iaGUVzwgBpBi54Yp7A
Ethereum : 0xf0b5578f97d45bf6eb70b49032c91f9f65b38866
Digibyte : DNt7uSKyvp9Qr8wQ4H1fyBmm5h4SAv2RS6
Siacoin : 50ea17b6f3e1ac2dc343d85b079b1975d2f713b74ea880ac36c159624e74a1e264c7f1c415b8
DOGEcoin : DGijrEyCARM6tAhxBT9Jwzw6XRaCzqQ2P3
STEEM and STEEM Dollars are welcome too!!
Peace!!