The Steemit Currency Units
Steemit provides three different kinds of currency units.
They offer Steem, Steem Power, and Steem Dollars.
We will explain each one of them.
Steem:
It is the most liquid type of currency available on the Steemit platform. These currency units can be bought or sold for actual money on the open markets. They can be traded like bitcoins or a company’s stock. They can be converted into Steem Power, Steem Dollars, or if you want, they can be traded for real cash on crypto exchanges.
However, you should not hold these for too long as more Steem Units are created each single day. If they are held for a long time, they become diluted and go on to lose value.
Steem Power:
Steem Power Units provides you the opportunity to have ownership in the network. With Steem Power Units, you make a long term investment in the currency as these units cannot be sold for two years. As the network grows, so does your chances of making more money in the long run.
As much as 90% of the new Steem Currency that is generated each day is distributed to those who hold Steem Power Units. Moreover, half of the pay you receive for your content comes in the form of Steem Power Units. It determines the amount of influence a user can have on Steemit.
Steem Dollars:
The third and final form of currency on Steemit is Steem Dollars. It never gets diluted or goes on to lose its value. They are a stable currency which can be sold at any time.
It is a market-powered token which is pegged to $1 USD. People use them for upvoting posts on Steemit. 1 Steem Dollar represents any amount of Steem for reaching $1 USD.
Moreover, when you create popular content, as much as 50% of your pay will be in Steem Dollars. And you get richly rewarded for holding Steem Dollars. Holding Steem Dollars pays 10% interest.
However, Steem Dollars cannot be used outside the Steemit platform. You require converting Steem Dollars into Steem and only then you can convert that Steem into Bitcoin or USD.