What Are The Positive Aspects of Steemit and Where Is it Headed?
Hello my fellow Steemians, what is the current state of Steemit? I'll answer this from a social media perspective, blockchain perspective, cryptocurrency perspective, and money making perspective. I hope to provide great knowledge and my own opinion on those questions in my writing below, but I want your input as well!
Social Media Perspective
Steemit is great in that it is imitating Reddit with the upvote features and the ranking of the comments essentially by comments or by SP. The good thing is we have around 1 million total users and 60,000 active daily users and growing. The bad thing is a lot of content is simply average or below average. Most average content gets upvoted using SBD and gets to the front of the trending page. Often there are many misspellings and the articles you could honestly find better elsewhere, such as medium.com.
The quality of comments generally is pretty poor as well. On big main stream threads you’ll see the typical comments like “Great post – follow me” or “Nice post man – upvoted.” These comments lack any sort of substance and make our community looks like trash.
I do my best to leave well written and thought out comments on others’ threads. I sometimes spend 5-10 minutes reading someone’s article in the entirety, and then taking 5 minutes to leave a long comment. I like to quote some of the passages that stand out to me the most, and I like to leave valuable positive and constructive input. As a result of my diligence, I earn about 5 SBD/SP a day for my efforts!
Below is an example of a comment in which I read the author's work diligently and wrote out a well-written comment, and was rewarded handsomely:
Blockchain Perspective
Steemit is one of the most fascinating blockchains. All content is transferred over the blockchain and all transactions are done over the blockchain. Never before in the history of social media has there been a decentralized source; providers like Snapchat, Youtube, Facebook, and Reddit are all internally controlled! This is the best social media because users have so much control. The free market is taking over – it is really beautiful. Steemit can process right now over 10,000 transactions a second compared to Bitcoin’s 7-20 transactions per second. It is predicted one day with the advancement of the SMT, that Steem will be able to process one million transactions per second.
In addition to Steemit being one of the fastest cryptocurrencies by number of transactions, it also has the most blockchain transactions (1.5MM a day)…period! Even more than Bitcoin or Ethereum which are both valued at over 90x Steem’s market cap!
Cryptocurrency Perspective:
As far as how Steem fits into the general scope of other Cryptos, at around $3.50 and an $800 million market cap, it is extremely overvalued based on the fundamentals already described. You will see the value of Steem grow as the number of users grow on the platform, this is also known as the network effect. The network effect is a phenomenon where increased numbers of people or participants improves the value of a good or service. With only a million users and a market cap of $800 million, compared to Facebook’s daily average users of 2.2 billion and its market cap of $526 billion, it has a lot of room to grow.
Consider this, if Steemit reaches even 5% of Facebook’s current market cap of $526 billion, that would equate to a $26.3 billion market cap for Steemit. To reach that you may say Steemit may need to reach 5% of 2.2 billion, which is about 111 million users. In a world full of 7 billion people that may not be that hard.
If Steemit really reached 5% of Facebook’s current market cap, each Steem token would be worth about $115. That seems crazy now, but if you do the math and the growth in users are there, it is definitely feasible. That is being conservative in my opinion, if Steemit gains heavy traction in the next 1-4 years, don’t be surprised with the astronomical surges in price.
Money Making Perspective:
Steemit is great of course for blogging and the community, but you get to generate capital gains and great cash flow. What I mean by cash flow is you can generate about 5-10% of your SP in a month and generate it into SBD that you can then transfer to fiat. I prefer to hold onto my SBD and convert them to SP and power up.
In the short run you can make $500 a month off of Steemit, that is great and can help with some bills. But if you hold onto those earnings and reinvest it, your cash flow will grow faster. On top of that Steem could appreciate 10x or 20x so that $500 could be between $5,000 and $10,000.
I believe that you need to invest a little bit of SP to get started on Steemit. Only 1% of people on Steemit have more than 500 SP. So if you can manage to acquire that much at the current low market prices of $3.50, then it is a steal from a long term perspective! I think this platform will grow exponentially with other users coming on board, and the price should see a significant turn upwards as a result.
I really believe Steemit will be a great money making source for those who provide good blog and video content. You will see a gradual wave of people who come over from Youtube and Twitch that are tired of having their earnings significantly reduced by centralized forces.
Conclusion:
Steemit is a great innovative blockchain service based on its many aspects: its unique first mover advantage in social media, its one of a kind and best in class blockchain technology, and its ability to provide average people who put hard work into content creation with monetary rewards. My predictions are not financial advice and you guys should invest up to your own discretion. I am particularly bullish on Steemit and have invested a good deal of personal funds in it. I think the future is bright for Steemit, and I take part as much as I can everyday in its continued success!
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