Measures absolute and relative price fluctuations over several time frames and other variables.
Calculates returns in comparison to moving averages and other factors.
Measures the ability to scale, upgrade and other technological weaknesses or strengths.
Evaluates public acceptance, participation of developers and other key factors.
Steem has a history of large excitement followed by a “cooling-off” period. This is evident in their token price throughout their short history. The big question is whether Steem can break this habit and show consistent and methodical growth.
Since Steemit is a blockchain-based social media platform, the ROI for Steem will be realized when people start using and interacting on the Steemit social media platform. Expect a relatively low token ROI (compared to the average cryptocurrency) until a wide section of the general public signs up for the Steemit platform.
The idea behind Steemit is that a cryptocurrency can introduce economic incentives to a social media platform and allow the platform to grow in a way that is completely different from the growth path of traditional social media platforms such as Reddit, Twitter, and Facebook. It is the synergy between a cryptocurrency and actions of users on social media that gives Steemit a really powerful advantage.
The challenge of Steemit has been to solve the issue of assigning value to various user contributions on the platform. In a perfect world, users rate each other fairly and cooperate with each other, leading to a social media platform growing in an organic and healthy way (meaning no service abuses and no advertising). However, in the real world a platform needs algorithms to deal with intentional manipulation and service abuses.
Since their launch in March 2016, Steem has announced that more than 334,000 people have signed up to the platform, they are up to 234,000 monthly posts, those posts rake in 600,000 monthly comments, and have given out over $22 million in rewards to their users. Most of the users and content using the site are already entrenched in the crypto market. In order for Steem’s vision to become a reality, Steem will have to entice non-crypto investors to start using their platform.
Steemit is a blockchain-based social media platform. The goal of the company is to take the lessons from existing social media companies and combine them with benefits of blockchain technology.