Let me introduce you to my view of Steemit / Steem.
From the perspective of a newbie Steemit looks like a platform / Social-Network where you can post storys / post / art / anything useful to entertain and educate other people who are willing to upvote you post and therefore letting you earn money.
Now without any experience this seems lucrative because you are earning cash without really doing a lot.
But there's more behind it! For example here is the amount of btc mined from the beginning of its existence :
total mined: 16,396,088
Total Bitcoins to ever be produced: 21,000,000
Percentage of total Bitcoins mined: 78.08%
Total Bitcoins left to mine: 4,603,913
Total Bitcoins left to mine until next blockhalf: 1,899,756
As you can see Bitcoin is mined 3/4 so only 1/4 remains. That's worrying of course!
Now here's some information about steemit:
-When the dam opened, $1.3m worth of stored-up blockchain-based currency called "steem" was released to those that had >been participating on the platform.
-The first is called Steem Power, which provides utility and leverage. Steem Power is the backbone of an account's voting->potential. In other words, the more Steem Power an individual has, the stronger their vote is on Steemit.
Now that's the part where my head starts to rumble.
if one user had 1,000 Steem Power and another had 10,000 Steem Power, it's clear that the latter has a more powerful account >than the former. The effect of each of those two people voting on a piece of content is not equal; specifically, the user with >10,000 Steem Power's vote is worth more.
So an account with more Steem power is worth more when upvoting a post? Why? Isn't that kinda unfair?
That's the part where you see the similarities to other cryptocurrencies (case: Ethereum!):
Steemit gains its security from a delegated proof-of-stake algorithm, first developed for Larimer's BitShares project, which is a >variation of proof-of-stake. A true proof-of-stake algorithm, such as peercoin, relies on those who hold the currency to verify >transactions.
The proof of stake concept was integrated into Ethereum a while ago, many seem to be mad and angry because they thought that could be the end of Ethereum Mining but look at the current price and you'll see that it pays out really well!
ETH 17.06.17 3pm : $374.4330
BTC 17.06.17 3pm :$2597.530
Before Bitcoin was worth 3 dmn THOUSAND! $3K now you can see that BTC is climbing down and ETH is climbing up as predicted by a lot of Cryptocurrency experts.
Here's a good video by Jerry Banfield about Ethereum and mining giving you 100$ per day.