At first, Im a bitcoin user and became broke because of gambling and HYIP sites. But, now Im moving to SteemIt and here is my understanding about Steem.

(correct me if I put some absurd ideas, I dont do research. I just jumped into information on to how to get started in a certain crypto.)

But before going thru, lets tackle some terminologies about Steem and Bitcoin that I strongly believe that they have something in common.

BTC ---------------------------------STEEM
Miners ------------------------------Bloggers
Hashes -----------------------------Steem Power
Transactions ----------------------blogs/posts
Bitcoin Reward -------------------SBD(token)
verifying transaction ------------upvoting

Does not make sense? The relationship.

(i dont own the pic)

I cant provide illustrations for better elaboration but ill try to explain it.

Now as far as I know about Bitcoin. Miners mine new bitcoins as a reward for verifying transactions from the blockchain. SteemIt on the other hand goes the same way. Authors/Bloggers(miners) post blogs(transactions) in the blockchain(as we all know SteemIt is a blockchain inspired system). They also have the option to upvote(verify) those blogs where they can earn rewards such as SBD and SP(bitcoin reward). The blogger with the highest Steem Power earns the highest reward when the SBD is distributed to the users.

Where is Steem?

(incase you notice)

Simply, when you want convert SBD, what do your prefer, Bitcoin or Steem?

(99.99% will choose bitcoin)

So mainly, SBD is the apple of the eye here and not Steem. Steem is just another crypto regulating the value of Bitcoin. Its just a fair and stabilize competition to all cryptos.

Where does the money come from?

Talking about Steem Dollars

Theres really no particular answer to that question, I guess. But If you know how bitcoin started you might get the answer because as Ive understand, Steem is merely like Bitcoin in all aspects. Or, it could be better than the bitcoin.

Really sorry for my bad english. Im not a writer. And if you find this post or me as an ignorant one, youre free to express in commenting or flaming. But, I do appreciate for the upvotes. :)