5 Where does the money come from?
Hi Everyone. After learning about Steem dApps, most people want to know, “Where does the money come from? Who is passing out money? (I took out monopoly money reference) How does it all work?”
Steem tokens get their value from two main sources: their price point as a currency, and their degree of influence on the steem blockchain. They can be traded, bought, and sold on the open market just like all other digital currencies. When a person chooses to trade their money for other currencies in the market, they give that coin value. Just like steel, corn or wool, the higher the demand for these resources, the more valuable they become.
As a commodity, Steem presents value because it has no transaction fees, a three-second transaction time speed, and it gives users the ability to participate in the different communities.
The more Steem that someone owns, the more valuable their vote becomes. When you first start out, your vote will usually not be worth much, but that amount increases as you either purchase steem tokens or earn them through community engagement and content creation.
We’ll break down more of these concepts in future videos, but at least for now you have a basic framework defining cryptocurrency, blockchain technology, the Steem token, and how the Dapps operates. We’ll continue to build upon these concepts.
6 Account Security – Passwords and Keys