Table of Contents
Steem is a blockchain platform where anyone can earn rewards for posting and viewing content. The incentive platform supports community building and social engagement, rewarding those who participate in publishing, voting, and exploring large content using cryptocurrency. The social media project was founded in 2016 by Daniel Larimer (former BitShares programmer) and Ned Scott.
There was no Steem ICO when the project appeared – instead, Steem platform attracted content creators who started contributing their articles to the website and got rewarded STEEM tokens for it. Thus, the project is supported not only by large investors but rather by usual contributors – content creators and readers.
Steem social media platform was created for ordinary people to reward their effort for the online communities. It allows empowering users from all over the globe.
The following groups of people can greatly benefit from using their platform:
- Heads of organizations
- Registered participants
Steem Coin Fundamental Value
Steemit platform has 3 tokens: each plays an important role in sustaining a healthy ecosystem of the platform:
- Steem (STEEM) is the main platform token. The value of the other two tokens depends on the value of Steam. Steem converts to steem power instantly. Steem increases by 100% per year in order to leave high motivation inside the platform for new users. It can be traded on exchanges. The price of Steem depends on the market;
- Steem Power (SP) is an exclusively internal currency that determines the strength of voice on the platform. Like any startup, Steemit needs long-term investment. SP cannot be converted and displayed immediately. Even if there is a desire to withdraw SP, they will be converted into STEEM in equal parts during the year, according to the dividend system. The SP course is completely dependent on the Steem cost;
- Steem Dollar (SBD) is another cryptocurrency that is traded on exchanges. Unlike the previous two, its rate is completely dependent on the dollar. That is the price of Steem coin SBD is always $1. SBD cannot be converted to SP. Part of the remuneration for the content creator is paid in SBD, which guarantees its value. In the future, developers plan to introduce this particular currency into the global economy so that it can be paid for purchases and services.
A pool of rewards is formed daily for both content creators and readers (curators). Their size depends on the capitalization of the cryptocurrency platform. The reward pool is shared between authors and readers (75% is received by authors, 25% – by readers (curators). Witnesses or holders of nodes, that is, those who have a Steemit database on their hosting, get 10% for the expended capacities. 15% is given to so-called long-term investors, that is, those who hold their assets in SP, which is a motivation for investors not to lower their capacity and be interested in long-term investments.
|Asset Type||Utility token|
|Consensus Protocol||Proof-of-Work + Delegated Proof-of-Stake|
|Market cap||$57 157 849|
|Curr. Supply / Total Supply||361 059 411 / 344 085 317 STEEM|
|ROI since launch||-74,16%|
|Launch date||18 April 2016|
Steem Coin 2018 Price History
During 2018, STEEM price fell by almost 84%: while in the beginning of the year, STEEM was worth $8, by the end of 2018, it fell to $0.23. The possible explanation for that was a drop off in users that’s conditioned by the downward STEEM price movement – the value of users’ stakes diminished when the crypto run 2017-2018 ended. Besides, given the long-lasting bearish market 2018, people started disappointing in cryptocurrencies.
Steem (STEEM) Technical Analysis
What’s the current situation on Steem market? Check out what TradingView users think about it:
Steem Community Reputation
As far as we can guess, STEEM has become very popular right after it hit the market – it provided the Internet community with a completely new way of making digital money from their content.
However, what people didn’t like was a complicated scheme of reward distrubution. First, it was hard for newbies to promote their content: without votes from ‘whales’, it was impossible to get enough views for decent monetization. Secondly, curators received only 25% of rewards, which was also unfair. In September 2019, Steemit decided to renew the rules and change the reward distribution system. The upcoming version is called NewSteem.
It’s a great decision because Steemit needs to hold the old users and attract new ones. In 2018, the platform lost many contributors because people left due to low STEEM cost and poor remuneration. In November 2018, Steemit even fired 70% of their staff due to the lowering activity of the platform.
The introduction of NewSteem version has given people hope that the reputation system will be way fairer.
As we see on the search trend chart, Steem was especially interesting for Internet users in the beginning of 2019 when the next bull run was expected.
Influencers Opinions on Steem
Since the crypto market is still in the downtrend, the Steem price predictions are rather pessimistic just like for any other altcoin.
However, the crypto community believes that STEEM token price will elevate sooner or later, and now is the right moment to collect STEEM coins.
Here are a few STEEM price predictions 2019:
- According to Trybe.one, Steem is not a good 1-year investment because it won’t rise in price during the following months. They based this opinion on STEEM price predictions from other sources.
- According to TradingBests, STEEM will cost $0.22 by the end of 2019. In 2020, it can reach a maximum of $0.4.
- David Cox from Cryptonewsz claims that Steem price isn’t likely to rise in the nearest time, and STEEM price will hold at the current level ($0.16). However, long-term perspectives are bullish.
- Coinpredictor.com provides the most pessimistic Steem price prediction claiming that STEEM price will fall to $0.09 in 4 weeks, and its value will diminish to $0 by the end of 2019. Of course, considering the growing community of Steemit, it cannot be true.
- According to Alex Mistrelle from Cryptoinfobase.com, the price of Steem will be at the level of $0,4-0,6 in the second half of 2019, and all-time-high should be expected in 2020.
What to expect from Steem price in 2019-2020
Judging by a few Steem dollar price predictions, its price is expected to keep at the level of $0.16 until the end of 2019. From one side, there’s a NewSteem version coming soon (it might contribute to STEEM price growth), from another – the bearish market that doesn’t seem to finish.
Our Steem price prediction 2020 is $0.4-0.6. If the bearish market ends, it will be easier for the cryptocurrency to overcome the resistance levels.
What can contribute to Steem price growth?
- Growing user involvement (the platform is more interesting for users than Reddit and Medium).
- The new rewarding scheme.
- High network bandwidth.
If Steemit team manages to sustain the interesting to the project, STEEM cryptocurrency might have great long-term profits.