I love bitcoin and have owned some for the last couple of years. Today, I got rid of what I had left and here is why...
The 5 phases of the bitcoin purchase
The purchase
You sign up at Coinbase (or another exchange), pay the fees, and buy some bitcoin. That's assuming Coinbase didn't freeze for you...in which case, it took you some time to finally get some. Now you own some bitcoin!
Security
With all the articles and videos on hacking, a little bit of panic sets in on how to secure your bitcoin. Maybe you purchase a hard wallet like Trezor. Or maybe you print out a paper wallet, bury it in the backyard, and draw up a treasure map. Then add a security camera to watch the backyard...now it's safe!
Tracking
Now that you own and have secured your bitcoin, you're checking Coinbase or Coinmarketcap every 30 minutes to see what's happening to the price. 10% spikes feel awesome! 5% dips make you sweat and spark fears of those crazy articles coming true. As weeks, months, years go by, your bitcoin grows in value compared to the dollar (or your local currency).
Complacency
It's going up against the local currency, but now what? Your bitcoin is just sitting there collecting dust. When you have money in the bank, you earn interest. Even in today's environment of low interest, there is still some small interest you earn. There is no interest with bitcoin!Research
Complacency leads to research on the alt coins. This may lead you to learning about other coins that have more growth potential and about Proof of Stake where just owning a coin and holding on to it can earn you more coin. This is just like earning interest at the bank, except the crypto coin is also gaining value against the USD instead of losing value due to inflation like USD.
Where Steem Comes In
Steem is one of those coins that offer a return while you hold on to it. Just like putting bitcoin in your wallet, you put Steem into your Steemit account and power up. Powering up enables you to earn more Steem by using the Steemit website. You don't even have to post if you don't want want to...you can earn just by reading other posts and commenting/upvoting content from other users. So, you're doing what you would be doing anyway on Facebook/Instagram, but you are earning more Steem during the process. The more you power up, the more you can earn.Conclusion
Your bitcoin doesn't earn more bitcoin by having it in your bitcoin wallet. Steem earns more Steem. There is always a downside risk to both Steem and Bitcoin. But, Steem is at the early stages with users waiting in line for over a week just to get signup approval. In the near future, Steem has more of a growth potential than bitcoin. On top of that, you earn more Steem by powering up and commenting/posting!This is just my opinion, you should form your own opinion before trading. I'm sharing my logic and also what I have done with my investments. I no longer own any bitcoin at the time of writing this, I do own 6 other crypto currencies including $8k worth of Steem that you can see on my account. I am putting my money where my mouth is!
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I agree with you. At the moment I am mining through nicehash and converting my BTC earnings to STEEM. The only other investments I have are in Ether.
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Wasn't familiar with nicehash. I'll try it out!
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That's true, and when you think about it from a long-term ROI standpoint, you really do have more to gain with having STEEM as a long-term investment because of the extra currency generation. The actual social media platform behind it is also very promising as well, it's sort of a domino effect over time with each new article being posted, solidifying steemit into googles SEO more and more each day, effectively over time increasing the worth of the currency.
Good post my man, thanks.
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Great article ! , you are not really earning interest on steem you are earning it by commenting and upvoting, although having more steem power helps you earn more. Steem had different interest options but it seems they stoped for now.
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Good point. Feels like interest since most people are on facebook/instagram commenting anyway.
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Thats true my only wish is that I got on earlier, I have been posting on instagram for years .... thanks for the likes guys but I rather get steem lol
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I don't quite agree with your title, I believe Bitcoin is a better investment and store of value than Steem, unless your a whale and can leverage your steem through your posts. Yes Bitcoin has its issues but over the long term has more value as it doesn't have the inflation aspect as Steem does. If i'm correct Steem doubles the the amount of total circulating Steem tokens every 2 years. Correct me if i'm wrong, but thats what I remember. Just my perspective. Keep Steeming!
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With the issues going on with bitcoin in the short term, and the huge wait list of people wanting to sign up at Steemit..it's Steem for me. Longer term you're probably right though!
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I do love the Steemit platform and Steem! :)
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