How unreliable is Steemit, which has increased nearly 20 times!

In recent days, a digital currency called Steem has attracted a lot of attention, not because of anything else, but because the currency has risen by nearly 2000% in two weeks, and the total market value shown on coinmarketcap.com has reached 300 million US dollars! (After the Guardian reported that Steem rose 10 times in two weeks, the price of Steem rose nearly 100% again in one day, temporarily ranking behind Bitcoin and Ethereum).

Many people are wondering, is it reliable? Don't worry, let's take a look at what this thing is.

Steemit is a new social media platform. After users post content (articles, pictures, comments) on the platform, they can get a system reward token Steem according to the rules such as user voting and commenting. After browsing its page, you will find that there is no restriction on the theme content of the website, and at first glance its layout is very similar to reddit, except that it has an additional reward function. (Take a look at the current top-ranked post. Its content is actually the creation of a SteemStream.com website, which has received a total of 323 votes and 62 comments, but the reward it received is as high as $1,100! Another post with zero comments and a very low ranking actually received a reward of $133!)

Are they doing good deeds and giving away money?

You know, these rewards are all settled in Steem. Anyway, Steem was developed by them, so how much does it cost?

Now let’s take a look at how this coin is distributed.

Steemit CEO Ned Scott once said in an interview with the media: "Starting from July 4, we will allocate 10% of the tokens to all users to thank them for their contribution to the development of the platform."

That is to say, up to now, the coins circulating in the market do not even account for 10% of the total amount. The real method of calculating the market value should be to multiply the circulating shares by the market price. Therefore, the market value of 300 million US dollars obtained by coinmarketcap.com is not accurate. In fact, it is less than 30 million US dollars.

Let’s look at the founding post of Steemit on bitcointalk (https://bitcointalk.org/index.php?topic=1466593.0), which states: Every new user who registers a steemit.com account can get 10 Steems. If calculated based on the current market price of $3.73, that’s $37.3, or more than 200 yuan. Is this reasonable? (Can the wool-pulling party in the great country tolerate it? Can the price of Steem be sustained?)

Let's take a look at its github source code: https://github.com/steemit/steem

Its introduction states: Steem is an experimental proof-of-work (POW) blockchain that uses an unproven consensus algorithm. 1. Current logo STEEM
2. The block reward after launch is 1,000 STEEM3. The long-term inflation rate is about 100% per year (this sentence is very vague, I don’t know whether it refers to the block reward or the total amount)

Of course, Steem's proof of work is not based on computing power. According to my personal guess, it should be based on the votes and comments obtained from the posts.

Let’s take a look at the information of the founder and CTO.

CEO Ned Scott, according to his introduction on LinkedIn, worked as a business operations and financial analyst at Gellert Global Group from May 2013 to February 2016. He founded Steemit in January 2016, and before that he had never appeared in the digital currency community.

(Steemit CEO: Ned Scott)

Another person, Daniel Larimer, must be very familiar to everyone. He is the founder of Bitshares, known as "Bytemaster", and he is the chief technology officer of Steemit. People who know Bitshares should know some of his past.

(Steemit CTO: Daniel Larimer)

Well, having said that, perhaps you have a certain understanding of Steemit. Those who want to get the bargains should not miss this opportunity. As for friends who are tempted to buy this coin, I advise you to stop. Of course, the above are just my personal opinions, and you are welcome to refute my opinion!