The Steemit Payment System

If we are doing tasks for money, surely we need to know the value of the money that we are earning.
Within the Steemit payment system there are steem, steem power and steem dollar, each having their own function. Steem operates outside the steemit environment, but sets the final values of what we will receive. For both Steem Power and Steem Dollars to become usable we will need to convert them and they only can be to Steem.

The value of Steem

Steem as the trading arm, trades against other cryptocurrencies on exchanges such as Polonex, Bitshare Openledger and Bittrex , like all cyptocurrencies it is volatile, hence its value can change significantly day by day, hour by hour. The amount of Steem Power and Steem Dollar are determined by the rate of exchange that Steem is trading at any given time.

As we may already know we are able to cash out our steem dollars whenever we want, but not so with our steem power, as steem power require to be withdrawing in a timely fashion and that is weekly over a period of 104 weekly.

The Power of Our Work

We participate in steemit to write and post articles, upvotes and comments on others posting within the network. For doing this we are rewards with both steem power and steem dollar. The network set what proportion it grants us for steem power and for steem dollar. The steem power is like vitamins, the more we have, the stronger we becomes, the more punch we have, the more we can earn.

How Much Steem Do We Get For our Steem Dollar?

The steem dollar is tighted to the US dollar at a ratio of one to one, so the value of our steem dollar is determined by the value of the US$ against Steem. Currently steem doesn't trade against the US$, hence steem and our steem dollars have to be measure at the rate that Bitcoins trades at. Today a bitcoin at Polonex is trading at $660, so the value of the US dollar is about 0.00152btc, while the value of steem on the same exchange is 0.00336btc, hence Steem is trading at the equivalent to 1 steem = US$2.21, as the steem dollar is tighted to the US$ the 1 steem dollar = 0.452 steem. The steem power however is much different as it is tighted directly to the value of steem, hence 1 steem power = 1 steem when converted.

The long term insentive on Steem Dollar and Steem Power

Steem double annually, and both the steem power and the steem dollar accrued annual interest. For those of us who holds on to our steem dollar, we will gain and interest of 10% on our dollar. In terms of the Steem Power a massive 90% is rewarded.