Why I believe the lower Steem price is great news for minnows
Steem has taken a tumble thanks to the Chinese ruling that ICO's are illegal, but I will argue that while this might hurt the whales and dolphins in the short term (especially the ones powering down), it's amazing news for us minnows in the longer run. Why do I say this? Let me run you through my chain of thought:
I started thinking about this after seeing @jerrybanfield predicting Steem to top $100 soon. At first I was really excited. Steem at $100? WOW! My 32 odd Steem and Steem Power combined will be worth $3200? That's triple what I earn in a month in ZAR!
As these thoughts were running through my mind I received the payout of my best received post to date with author rewards of $11.02. This translated into 5.171 SBD and 3.977 Steem Power. I did the quick mental math and concluded that 5.171 + 3.977 only added up to about 9.1... What gives? I was expecting 11? I proceeded to do some more math and turns out that when I adjust for the USD price of Steem and SBD at the time of payout then the rewards do add up to about $11.
So what does this mean for you, me and minnows everywhere? It means that a low Steem price equals a higher Steem Power portion of our author and curation rewards. More Steem Power now means that when Steem does go to the moon we will be smiling all the broader.
Let me illustrate:
Let's assume Steem and SBD at 1:1 parity with the greenback for simplicity's sake. If your post is worth $10 then you get 5 SBD and 5 Steem Power.
Let's now assume Steem goes nuts and hits $100. Our rewards are still calculated in USD which means that same $10 post will get you 0.05 SBD and 0.05 Steem Power. In dollar terms they're still the same but had you earned that $10 while Steem was where it is now you'd be 100 times better off. Don't get me wrong, I fully believe that Steem and Steemit has an amazing future ahead of it and I'm damn happy that I stumbled across it when I did.
So what's the take away here? This is our golden opportunity to make hay while the sun shines. Low Steem price = better SBD and Steem Power rewards which will be worth a fortune as Steemit gains popularity and the price rises and rises.
We're sitting on a goldmine my fellow Steemians. Don't let the low price get you down.
Your thoughts and comments will be appreciated.
Team South Africa banner designed by @bearone
I think Steemit is a great platform that will definitely see growth in the future. Being in it early on can only be beneficial to all of us!
Agreed. I sometimes look back and regret only becoming a part of the community a little over a month ago when there are people that have been here for more than a year already, but then I take a step back and remember that we're still some of the early birds and the future looks very bright indeed!
That's a very interesting perspective. I'm glad to see your thinking. I'll be following for more.
This post has received a 6.40 % upvote from @lovejuice thanks to: @bunnychow. They have officially sprayed their dank amps all over your post rewards. GOOD TIMES! Vote for Aggroed!