STEEM investment opportunity
Hello fellow Steemians today I would like to share with you my insight why STEEM is an awesome investment opportunity. Like most STEEMIAN the first thing that lured me to this platform is the prospect of earning cryptocurrencies just by blogging. I thought it was an easy endeavor as I have been blogging before and I have already Identified my niche. Cryptocurrencies.
Prior to joining STEEMIT I spend almost all of my time researching and learning cryptocurrencies. I have done Faucets, HYIP's, Pseudo and real crypto-mining, BTC doublers, crypto binary options, Dice Games, crypto PTC sites , ICO, Bounties, affiliate and referral programs , airdrops and etc. Basically every cryptocurrency enthusiast activity you can think off. I do this every single day and more than 14 hours a day.
Learning cryptocurrency is a bit hard at first but once you learn the basics they are almost pretty much the same with different technologies, use-cases, implementations and wallets. What makes it even harder for newbies is that, there are so many cryptocurrencies to learn. It is hard enough to learn about the cryptocurrencies in itself but knowing which one to focus on poses another challenge. You can always go to your favorite forum or website to get the latest news of upcoming cryptocurrencies. However, just keep in mind that in these forum and websites there are "paid users" who will try to sell you their idea of a certain cryptocurrency, get you interested and possibly get you to invest.
When evaluating certain cryptocurrencies there are many things you have to consider. To keep it simple I ask myself these following questions:
- What can it do that sets it above other cryptocurrencies?
- Does it have a working product that people will actually use?
- Is the wallet secure and easy to use?
- What is the possibility that its value will increase in the near future?
- Will it last?
Keeping this questions in mind I ventured into STEEM and its first application STEEMIT and check what is all the hype about and have drawn the conclusion that indeed it is an AWESOME investment. Let me explain why.
What can it do that sets it above other cryptocurrencies?
There are many things that set STEEM above all other cryptos. First is its transaction speed. I have been doing cryptocurrencies for awhile now and I have not seen transaction speeds like this before. Shown below is a visualization of the comparative transaction speed of the three leading cryptocurrencies. As you can see the three leadning cryptocurrencies is no match.
Here is another visualization that compares its throughput performance. This shows you the estimated throughput of STEEM. Without a shred of doubt in terms of performance in handling transaction STEEM beat the top three cryptocurrencies hands down.
Another amazing trait of this cryptocurrency is that it requires almost ZERO TRANSACTION FEES. When moving STEEM within the internal wallet of Steemit it there are no fees applied. Outside trasaction require no fees as well. There are times that a very small FEE is applied e.g. when withdrawing from exchanges like Bittrex, but this are charged by the external sites as there should no be no cost of moving STEEM around.
As a medium of exchange STEEM really is an outstanding platform. Faster transaction times, can process more transaction concurrently and virtually No Fees.
Does it have a working product that people will actually use?
It is a big YES! Steemit.com is its first application which is primarily is being used for blogging purposes. There are other application of steem such as eSteem, Zappl, dtube, Steepshot, Busy and Steemgigs that have their own specific use. While they are all different interfaces with its own specific purpose all of their content is also posted in Steemit.com it is my opinion that steemit.com will not only be used as a blogging site but a repository or explorer of all the available content that is posted in the different applications mentioned above.
Currently there about half a million active users (800K plus registered) of STEEM applications. Compared to Facebook which has more that 1 Billion users, which by the way have been subject to much controversy as 50 million users information was hacked from its system. STEEM has still so much growth potential. and unlike Facebook STEEM's applications are less susceptible to such cyber attacks as less information is required to get one. You can even get an anonymous account by using anonsteem which is being run by one of the witnesses (sort of legislators of STEEM).
image source: email from Martin Weiss at Weiss Ratings re: 7 Surprising Crypto Facts
Recently I got an automated email from Dr. Martin Weiss, founder of Weiss rating. He states in his email that:
Facebook is running scared because crypto upstart Steemit has created a social media platform which makes it impossible for third parties to steal and sell your private information. Unlike Facebook, which just admitted to a security breach impacting 50 million people, all user data is encrypted and private.
source: email from Martin Weiss at Weiss Ratings re: 7 Surprising Crypto Facts
On another email from Dr. Martin Weiss he said:
Fire and fury is aimed at Facebook — and for very good reason.
The U.K firm Cambridge Analytica stole personal data from about 50 million Facebook users — possibly yours — and used it to try to influence the 2016 election. Facebook knew and didn’t tell.
It was just a matter of time before this happened.
After all, Facebook’s entire business model is to profit from YOUR data and the content YOU create.
That’s a failing business model.
It seems that the target of the attack was data and information of American voting public so that it could be used for targeted campaigning during the presidential 2016 elections. Facebook apparently knew about it and decided not to inform the American public. But what is more relevant for us is what he wrote next.
But one crypto is changing that model right now. I believe it could provide a viable alternative to Facebook and make early investors wealthy.
This crypto was created for an entire social media platform where you, the content creator, get paid for your work. Only you control your information. And only you have the keys to your posts, articles, artwork, photos or videos. Only you control who sees your data or how it’s used.
As you can see, cryptocurrencies are so much more than a new form of money. The technology underling them is changing the world for the better.
And you can profit from this new era by owning the cryptocurrencies at the forefront of this change.
Dr. Martin Weiss did not name the cryptocurrency but I only know of one Cryptocurrency that has this type of application STEEM. It seems that it has strengthen the position of advocates of decentralized platform like STEEM. In fact Weiss and his team has such high regard to STEEM that they have given it the highest rating in their rating system.
B+ was given to STEEM which is highest among all the cryptocurrency on the list.
Is the wallet secure and easy to use?
We already know that STEEM is very fast and very cheap to move around but how does it fair in terms of security and ease of use?
I am not a security expert but I think it is safe to assume that the wallet is safe There have been reports of stolen accounts (and the wallet with it) due to phishing sites but most of this can be attributed to human error on the part of users and not vulnerabilities due to its code.
STEEM has one of the easiest wallet address in all cryptoverse your "username." There is no long string of apha numeric address to memorize. If you know your username you basically know your wallet address. Just to demonstrate ,can you recite out your BTC, Ethereum or Litecoin wallet now? Well I can tell you my STEEM wallet address: ankarlie that's it. Other cryptocurrencies tried to address this issue by offering naming services which is an add-on feature or a paid service. In STEEM it was designed from the very start to have an easy to remember wallet address. Difficulty of remembering their cryptocurrency addresses was one of the reasons why some people don't like using cryptos.
What is the possibility that its value will increase in the near future?
Nobody can really predict if a value of a certain cryptocurrency will increase in value in the future. One economic law that we can apply here is the economic law of supply and demand. It can be said that in time as more and more people gets into the platform demand for it will increase. Checking the block explorer of STEEM: steemd.com we can see that there are about half a million active user (800k plus registered users) on the STEEM Blockchain since it release in 2016.
To put this into prospective let us check the user base of other social media outlets:
|Social Media||number of users||years in operation|
|1.86 Billion||14 years|
|300 Mililon||11 years|
|600 Million||8 years|
|Youtube||1 Billion||13 years|
Compared to other social networks there are is still a lot of room for STEEM userbase growth. It might not be known to all STEEM actually has social media equivalents that that uses it protocol.
|Social Media||STEEM Equivalent|
Traditional social media outlets like facebook and the rest of them does not pay its users and always have the danger of having their private information, data or content hacked or sold without them knowing due to the centralized nature of these platforms so much more is the incentive to use STEEM powered application in which users have the chance of getting rewarded for content that they normally share for free.
There is an interesting website that claims to have the proper mectrics to quantify the value of a blockchain: blocktivity.info. It measures the Blockchain activities, market capitalization and Activity. Please pay close attention to the AVI (Activity Valuation Index ) column.
Activity Valuation Index (AVI):
This index takes the Bitcoin value (market cap) and the number of transactions (Tx) per day and makes it an index set to "1". Then, it varies with the other blockchains data. The index grows when the blockchain is very active and its market cap is low.
A blockchain with the same amount of Tx as Bitcoin but with only half of its market cap would have an AVI of 2. From the investor point of view, it would be twice as valuable as Bitcoin because it would have the same level of activity with only half the market cap. Another blockchain with half the amount of Bitcoin Tx with the same market cap would have an AVI of 0.5.
We can see blockchains like BitShares and Steem having very high index values. That is explained by the fact that they have a very low market caps but they process the same kind of Bitcoin activity or more.
To simplify just remember that a higher the AVI the higher its potential to increase in value as activities can translate to more demand for the cryptocurrency rated. As mentioned above the base of this index is Bitcoin (BTC)and compared to BTC, STEEM has 2,874 points higher. It is only surpassed by Golos ( a fork of the STEEM) which has around 4,492 points higher than the base index (BTC).
Another useful chart in blocktivity.info website are these two pie charts. Showing the 7 day average of number of transactions and marketcapitalization of crytocurrencies being rated in the site. STEEM has the lion share of the blockchain activities, about 53.9% at the time of this writing but capitalization is only 0.3% of the total capitalization on that list.This means that STEEM blockchain has a strong and active community of users which are all potential investors that are already using STEEM and more importantly, since market capitalization is relatively low, there is great opportunity for new investors to go invest and earn in the long run.
Will it last?
I believe STEEM will last for a very long time and poses a great investment opportunity for crypto investors. It is still evolving as new and ingenious applications with unique use-cases are being developed. This will provide additional demand for STEEM pushing its value further upwards. As it continues to evolve improvements are being made. This year the development team of STEEM is upgrading its protocol to incorporate "Token Creation Capabilities" for the STEEM platform which are called Smart Media Tokens (SMT).
I am not yet sure what is the underlying technology behind it yet but it could be compared to the "Token Creation Capabilities "of Ethereum with much higher transaction capacity and user friendly address. This is indeed an exciting new piece of cryptocurrency technology that will further boost the demand of STEEM as all SMT will be powered by STEEM.
There is indeed so much potential in STEEM. All good qualities of an excellent cryptocurrency investment are in place: Superior, secure and innovative technology, increasing use-cases, supportive and involved community and prices that is cheap enough for investor to get into it.
Thank you for taking the time to read my post and I hope you found it helpful and informative. Until next time goodbye and always take care.
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