Cryptocurrency has been all but impenetrable

Cryptocurrency has been all but impenetrable for the average person, who might struggle to recall a handful of computer passwords, let alone safely store the proverbial keys to a virtual bank account. It exists as an esoteric part of modern life. Only the most motivated users have educated themselves about how to trade real dollars for currency, and then use said currency to their advantage. The rise of Bitcoin, for instance, is linked to black markets; once someone figured out it could facilitate the distribution of drugs through sites on the dark web, like Silk Road, the currency’s value took off. Today, Bitcoin accounts for a little less than half of the entire cryptocurrency trading market; its nearest competitor is Ethereum, which occupies about 20 percent.

But the most innovative aspect of Steem is its lack of friction: New users can join Steemit and begin earning tiny fractions of the currency immediately, without even understanding how it works. It is designed as cryptocurrency for the masses, as the barriers to entry are almost nonexistent. Unlike Bitcoin, there’s no messing around with coin traders or triple-checking long, fiddly strings of letters and numbers to make sure you’re not accidentally sending your money to a Nigerian prince.

On Steemit, you simply create an account, start browsing the site, upvote posts you like, and search for the gaps you might fill by posting something of your own. If you’re not creative, no problem: You can curate by spotting high-quality posts soon after they’re published and voting for them as a kind of early investor, before the rest of the crowd arrives.

The gamification is by design. “It’s as though all the users are playing a social media game, and they’re earning points based on how well they participate,” says Scott. Years ago, he loved playing the action role-playing computer game Diablo II. “All of the characters in the game had the ability to cast spells, and they had ‘mana’ they could use,” he says. “As they cast spells, the mana was used up; over time, it regenerated, so they could cast more spells later. Voting power here works similarly: Users come back every day to try and vote better, and level up.”

With about 40 votes per day at their disposal, regular Steemit users are playing a lottery, where the outcome is turning internet points into real-world dollars. It’s not a get-rich-quick scheme; it requires significant time investment before you start to see more than a few cents per day.

As with any other cryptocurrency, the virtual bubble that surrounds this idea could pop at any moment, and all of that time and effort you’ve invested into earning Steem could be worth nothing—which happens to be precisely the same amount you earn when you post on any other social media website.