If Anyone Considers Steem And Communities/Tribes To Be Like Tokenized SubReddits, They Should Think Again

First of all, Steem is much more and thinking of it as a tokenized Reddit is too narrow a view. As we have already seen, Steem is well suited to becoming the go-to platform for blockchain based games that have digital assets. Steem has a lot of use cases, some of which may not have been invented, yet.

Secondly, Reddit really sucks at monetizing its monthly active users. Per monthly active user (MAU), Reddit generates $0.30 in annual revenue per user. Compared to other mainstream social media platforms that is depressing. Twitter generates over 30 times more annual revenue per user. The market cap of STEEM is currently $42.9 million according to Hive account@coingecko. Reddit's market cap is $3 billion and it has about 330 million MAU. Steem has about 53,000 MAU according to Hive account@arcange's latest stats. The current non-speculative market cap of STEEM would thus be $482,000, that is, 89 times smaller than it currently (a speculative one not based on revenue) is if it were as good at generating revenue as Reddit. The non-speculative STEEM price would be about $0.0015. But if Steem were as good as Twitter at generating revenue per MAU, the non-speculative price could be about $0.045.

The order of magnitude of the number of monthly active users is a hugely important factor. But the differences between social media platforms in their efficiency at monetizing their user bases are so large as to be able to make up for almost and order of magnitude and a half that they cannot be ignored.