Is Hodling STEEM a Good Idea?
User-created content has produced millions for social media platform shareholders, while most content creators earn nothing. Platforms like Instagram and Reddit don’t pay anything to content creators who help their networks grow. That’s where the Steem platform decided to step in to make a change.
With Steem, users can earn money by creating and posting content on the platform. In this article, you will learn about Steem, its prospects, and whether converting STEEM to ETH is a good idea.
What Is Steem?
STEEM is a cryptocurrency that empowers content creators on the Steem network. Steem is a decentralized, open-source, cryptocurrency platform for content creation founded by Ned Scott and Dan Latimer in July 2016.
The Steem project is aimed to promote content production and consumption on its platform. It represents a mix of ideas borrowed from cryptocurrencies and social media to create a new type of platform. The main idea behind Steem is to reward people for creating and curating content that benefits the community.
There are three native tokens within the Steem network:
- Steem (STEEM). The main token of the Steem network can be used in its native form or converted to other cryptos.
- Steem Power (SP). This is a unique token that powers the network’s consensus mechanism and represents the users’ voting power on the network.
- Steem Dollars (SBD). Users that curate or share their content on the network are rewarded with this token. SBD is pegged to USD and will earn you an annual interest of about 10%.
Exchanging other coins for STEEM is the easiest way to get it. You can also earn STEEM by interacting with the Steem community, commenting, sharing, and uploading content. The greater the value of your contribution, the more STEEM you will get.
STEEM Price Action
As of today, STEEM is traded at $0.23. Its all-time high stands at $8 recorded in January 2018 during Bitcoin’s first major bull run. Since then, the price of STEEM coin has slowly decreased with little to no significant gains.
In early 2020, Justin Sun, the founder of the TRON platform, bought Steemit, an app build on the Steem blockchain. Since then, the platform moved from proof-of-work (PoW) to delegated proof-of-stake (PoS) consensus mechanism. During the same time, the price of STEEM increased from $0.11 to $0.3 per token.
STEEM’s price is dependent on the BTC price. STEEM’s last bull run was in April 2021 when its price reached the value of $1.4. Like most of the market, Steem is bearish right now.
What Does the Future Hold for STEEM?
According to the STEEM price analysis done by Walletinvestor, the coin will be traded for $1.6 at the maximum in 2024. Crypto experts at Digitalcoinprice don’t see STEEM surpassing the price of $1 till 2030. Priceprediction forecasts that STEEM will go back up to $8 and hit a new all-time high of $9.75 by 2031. Crypto specialists at Tradingbeasts are less optimistic and think STEEM will be traded for $0.43 at its best.
To Hodl or Not to Hodl?
Hodling STEEM or exchanging it for other tokens is totally up to you. If you are an active Steem user, you might want to accumulate as many coins as possible to have a larger share that will help you earn more rewards on the Steem platform. The major benefit of using the Steem network is that it doesn’t levy in-platform fees.
If you are not planning to participate in the life of the Steem network, reinvesting your STEEM coin into one of the top cryptos like BTC might be a smart investment strategy. For example, Ethereum is a more reliable coin with a much lower inflation rate (0.5%) than STEEM. And due to Ethereum’s popularity, you will easily be able to convert your ETH to USDT or any other stablecoin on various exchanges at profitable rates.