BLACKSBURG, Va. (WDBJ7) A new website which began in the New River Valley is making social networking profitable.
The site pays for good content posted, but not in money.
Steemit, which was launched in Blacksburg, is comparable to the popular site Reddit. Users can post anything they'd like: blogs, opinions, statuses. There is no censorship.
With each post, users can earn what's called Steem Points.
Steemit CEO Ned Scott explained, "It all starts out as tokens, tokens without any value. But as soon as people start to trade them against other things that have value, they take on speculative value."
This cryptocurrency is earned by people on the new social network based on what they post and how others on the site react to it.
Company CTO Dan Larimer explained, "People post content and then everyone in the community votes and based upon how people vote, new tokens are distributed."
Scott added, "The better your posts do and the more insightful your comments are, the more of these points you get rewarded with."
Then the points can be used on the site or elsewhere on the internet. But people can also turn them in for some cold, hard cash.
"They're able to trade them against other cryptocurrencies, like Bitcoin, and then there are exchanges and you can then trade it for U.S. dollars and the exchange will send you U.S. dollars to your bank account," Scott said.
A new report indicated Bitcoin value is going up in the US, but should more people be getting involved and replaced current currency?
Larimer, a 2003 graduate of Virginia Tech said, "If more people get involved they tend to go up in value and if people lose interest they go down in value. What's going to happen in the future is anyone's guess."
This business, which has only been operating for a little less than a year, already employs a dozen people in the New River Valley.
To get involved costs nothing. Much like any social media site, you need a username, password, email address, and phone number.
And just for signing up, the co-founders said, users earn five Steem points to get started.
A link to the site is available under the Related Links section of this article.