Steem Power vs Steem Dollars - Simplified Explanation

Hey you, welcome back to the channel. And today guys, I want to explain the difference between Steam Power and Steam Dollars. You know, Steam It has just been this revolutionary thing that's just taken me by storm as well as looks like a lot of other people, and we're really enjoying our use on the Steemit site, the entire concept of Steemit, you know, what the future holds for Steemit. And I can tell you guys, I'm very impressed with the situation with Steemit. I feel fortunate, like I've been able to finally get pretty much at the or close to the beginning of something that I believe has a great future and is going to take off. But, you know, anytime that you got something that's going really good, it's always that little thing that is kind of— you wish would be a little bit easier. And I think that in this particular case will be understanding the difference between steam power in Steam Dollars and what it's all about, how it works. And, uh, hoping Mr. Jerry Banfield doesn't mind today, I want to use his account as an example because I like his account. It looks great, and I wish mine looked like that. I just started this week, so hopefully I'll be able to get my account looking like this. So I want to try to simplify this, guys, as easy as I can, as easy as I've understood this, and I think I pretty much got it down now. So let's go for it. All right, so we have Steam Dollars, Steam Power, Steam— what is it? Steam Dollars looks pretty, you know, basically, you know, simple. It's simple. Steam Dollars are just like Bitcoins. They're just like any other cryptocurrency. You know, it's basically the currency of this network, right? Okay, so that's the simple part. I think everybody gets that. And of course you have what we call speculation, right? That's when STEAM— the STEAM dollars, just like bitcoins, are going up and down in value. That's because people are selling them at different prices depending on their value, right? Because the network is tied to STEAM dollars, okay? They're, they're, they're— and Steam Dollars are tethered to the US dollar, so we know what their value is, right? You have to have something to, uh, uh, you know, for it to trade against so that you're able to know what it's worth. Just like Bitcoin. Simplified concept, just like Bitcoins. Okay, where the confusion I think comes in is when we talk about Steam Power. What is that? Why is it important? Why is it necessary? Why they're even doing something like this? So, okay, in a simple way, we're gonna think of steam power like a bond, just like a savings bond or trading bond. And why would you— why would they need something like that? Well, this is— think of it like an investment back into the steam network, right? Just like you, and you invest in bitcoins. But here's, here's where the confusion comes in, and here's what we need to understand. Steem Power only operates within the network of Steemit, okay? Steem Power is what gives users influence. It allows them to vote more on posts. It allows them to Basically, it gives them this power, but at the same time, they're getting money from it like a bond, okay? And they get like 9 times the money that's put in steam power. They get back— they get it back about 9 times, you know, their investment pays about, you know, 9 times over. And that investment is is locked in for a period of 104 days, which— I'm sorry, 104 weeks, which comes to about 2 years, right? But pay attention to this part. What they do is over that 2-year period, if you want to get out, uh, and still collect your 9% return your money is released, you basically take $104 and divide it by the number of Steam Dollars you have in Steam Power. So what's happening there is you're basically getting money released each week divided into equal proportions of how many dollars you have in Steam Power. Okay, so I want to just cut to the chase on that. The reason is two reasons why people would convert their Steam Dollars into Steam Power, and that is number one, influence over the network. You can pay out more, you get paid more for posts, you have more control over— that's how come when some people vote on your post, you get a lot more money than others, right? So that could be a very powerful tool, guys. And besides just the, the, the fact that you're getting this large return on your investment, it's like 9 times, and you're helping to grow the network, the value of the network, as you're contributing to the network. That's a lot of incentive for them to put their money in steam power. But again, in addition to that, the more steam power that you have, the more money you're gonna make, the more money the people you vote for are going to make, right? So does that all make sense so far? Very simplified of what Steem Power is. Now let's cut back to Steem Dollars. So this is what I found very interesting as well. Because Steem Dollars are tethered to the dollar, so it's trading in relation to the $1. When it's speculated on exchanges, just like with Bitcoins, they're determining the value from the buying and selling of it. But here's the cool thing about it. This is the part we need to really pay attention to, and you can roll back the video just to get this part. And that is, when a post is made and you're paid a certain amount of money in Steam Dollars, you you know, whatever your dollar value is in Steam Dollars, you will be— when your payout comes due, whatever the price of Steam is at that time on exchanges, maybe it's only 50 cents or 30 cents, if you made $1 worth of Steam Dollars, they're going to give you the equivalent of that in US dollars. So that would mean, let's just say for instance if a, if a steam dollar was only worth 30 cents but you made $1 on the post, they would have to give you like 3 or 4 steam dollars or 3 steam dollars in order to make for it to equal up to that $1. Okay, so does that all make sense so far, guys? It's very simple, but it just gets complicated. So you understand, and I think that's the most confusing part, at least it was for me. The idea of why do people put money in Steem Power when they can just cash out in Steem Dollars? And that is the incentive. It's just like a bond, guys. You're getting 9 times your money back, but you have to hold it for a period of about 2 years or 104 weeks. But you can cash out, or what the term they call powering down. You can power down and you'll be getting it and paid— you'll get a receive a payment like an installment payment every week until you reach that 2-year period, collecting 9 times that investment, at the same time making more money on the network by influencing the voting power on the network and things like that. So guys, when you really think about it, now I understand the greatness of why so many people want to put so so much in Steam Power and buy Steam Dollars. So guys, I hope that made sense to y'all. I thought that was— I hope that was maybe a little bit clearer than some of the videos I've seen so far. I hope it was a little bit more simple because it just got pretty confusing for me looking at it. But that's the simplified idea of it, guys. You know, of course, Just like when we think of the US economy, we have dollars, right? But what makes the dollar valuable? You know, what— why— you know, it's a promissory note, it's debt to pay back. But it's— but the dollar is backed by the ability of the United States government to pay it. And a similar thing is happening with Steam. Steam itself is backed by the Steam dollar. The Steam network is backed by the Steem dollar, right? And that's how that works. It's backed by— or I'm sorry, the Steem dollar itself is backed by the ability of the network to pay, by its growth, by the money that's in the network, that's the money that we're putting back into it, and the contribution we're making to the network. Okay, so guys, I hope you all got that. I hope that was a little bit more simplified. Feel free to ask questions if it wasn't. Be more than happy to help you. Guys, if you like content like this, don't forget to like, subscribe, and until next time, take care.