Recent cryptocurrency news headlines have been abuzz (as usual) with hysteria regarding recent Bitcoin price drops. However, as many top market cap cryptocurrencies have started pulling back in value, decentralized social media platform Steem, has broken new ground. - Specifically, by finally reaching over 1 million registered users.
The Steem Blockchain Explained
The basic premise of Steem is simple. Co-created by Dan Larimer, creator of BitShares, and EOS, Steem is tokenized and fully decentralized social media and content creation platform.
Steemit, a Steem powered blogging platform, allows users to curate, share, and monetize content. This is thanks to the fact that content consumers can ‘like’ and ‘upvote’ Steemit posts. Greater numbers of likes and upvotes, subsequently result in the allocation of Steem dollars to content creators.
Working on the same core principle as Steemit, Dtube is a more recent addition to the Steem ecosystem. Designed to displace the likes of Youtube and Vimeo, Dtube is a video content sharing platform which generates revenue via the same like and upvote mechanism as Steemit.
Why Reaching 1 Million Users is Big Cryptocurrency News for Steem
Being a content creation platform upon which any and all content can be easily monetized, Steemit (and Dtube) are exploding in popularity. More users subsequently mean more blockchain traffic, more content revenue being generated, and (in theory) higher Steem coin market prices.
Should Cryptocurrency Investors be Investing in Steem?
For investors not familiar with Steem, cryptocurrency news detailing Steem surpassing 1 million active users, will no doubt be a signal to invest. Sadly, investing in Steem is where things get a little more complicated.
Steemit’s Growing ‘Steem Power’ Problem
Having previously reached as high as $7 in value, there is a strong case to be made for investors buying now at $3.20, before selling Steem coins high during the next Bitcoin bull run. An increasing problem with Steem, however, rests with the fact that people holding significant amounts of Steem, predominantly use this to like and upvote select pieces of content on the Steemit and Dtube platforms themselves.
Steem's Artificial Upvoting Monopoly Explained
As a rule, content with the most Steemit likes and upvotes benefits from greater exposure on Steemit and Dtube. Greater exposure subsequently results in more likes and upvotes, and in turn, higher profits for content creators.
Because of this, only Steemit content creators who are willing to pay other users to upvote their content can ever hope to really establish themselves.
How Organized Upvoting Threatens Steem’s Long-Term Viability
A chief cause of concern for Steem, regards the fact that organized upvoting doesn’t just undermine the original ethos of the platform. As well as this, organized upvoting severely diminishes the quality of content published to Steemit. As a result, fewer people now interact with the platform in any kind of (genuinely) meaningful way.
Of course, should Steemit and Dtube continues to attract high-profile content creators from existing platforms like Youtube, Steem coin prices could skyrocket. This being the case, a strong argument can be made for investing in Steem tokens long-term. All that investors need to be aware of, is the politics and user dynamics involved with how Steemit and Dtube currently operate.