Understanding Steemit For Beginners (Economic Fundamentals)

To understand the fundamental concepts of the Steemit economy, we must understand the functions of these three values. First ... Steem is a unit value that we can buy directly on the Bittrex platform exchanger, and note that it does not work like a BitCoin where it is stored as a value asset because every year Steem's total supply increases 2x.
How is Suppy Steem created? The answer is from Proof of Work when solving a block. Steem can be mined through Windows and mining power is determined based on your Processor, not GPU like Ethereum. So ... Steemit Network starts from 0 supply and based on what's written on its whitepaper: there are about 800 new steems created every minute.
Second ... Steem Power is the value of a convertible unit of Steem. For you to re-convert from Steem Power to Steem takes 2 years, gradually as much as 104x payment. Why 104x payment because steem power you convert to steem will be paid every week .. Due to 1 year there is 52minggu then 2 years equal to 104minggu. This process is called "Power Down"
The advantage of having Steem Power is that we get Steem every time New Steem is created (still remember the above mentioned point that steam supply will continue to increase every minute?) In other words ... by steem conversion to SteemPower ... we are guaranteed to get Steem quantity (in the form of Steem Power) which is more over time running rather than storing Steem ente.
Third is Steem Dollars. Stability is very important in any company's economic success. For that, Steemit has a unit value we call Steem Dollars, which has a fix value (equivalent) with 1 US Dollar.

For that .. indirectly, every Steemit user will ensure that the Steemit site is always lively, making it a great success including introducing to people about Steemit and encouraging them to participate.

If we spend time in the forum Reddit / Kaskus or other social media, not necessarily everyone can enjoy the benefits. But unlike the users who spend time in Steem, they they will get rewards only due to actively contribute in social media. One interesting thing before sy ending this article is, to start in Steemit, should not be required capital to buy Steem. You can start for free, just by signing up, we've been given free Steem Power which is worth $ 3- $ 10. Is not this amazing?