Steem, Steem Power & Steem Dollars - Simplified

Steem is a special kind of cryptocurrency.
But unlike other cryptocurrencies, Steem has three kinds of currency units – Steem, Steem Power & Steem Dollar.

Although there are a lot of articles on how they work, here is a simplified article pointing out the basic differences between Steem, Steem Power & Steem Dollars.

Steem:

Steem units are bought & sold from open market as you would buy bitcoins. But holding on to these for too long may cause you a big loss eventually as Steem units are created everyday and if you hold onto these for a long time, they will be diluted and lose their value.

Steem Power:

Steem Power is a long-term investment in the currency.
They can’t be sold for 2 years. Yet you’ll be benefitted in the long run. Having Steem Power means you have ownership in the Steemit network and as the network grows, you will be benefitted from its revenue.

90% of the Steem Currencies that are generated everyday is distributed to the people who hold Steem Power. You receive half of the pay as Steem Power units for your content. Though you can change that to 100% by choosing the “Power Up 100%” option while posting a new content. Having more Steem Power means you have more impact on the site & you will get paid more by upvoting others content, though they will be paid as well. Another advantage of having Steem Power is, the more Steem Power you have the quicker your upvote will be cured.

Steem Dollars:

Steem Dollar is the third form of Steem Currency and it’s pretty stable as it never gets diluted or loses its value. You get 50% of pay from your content in Steem Dollars. You’ll get rewards for holding Steem Dollars as well though not as much as for holding Steem Powers. Steemit pays 10% interest to those who hold Steem Dollars.