Perspectives in Looking at My #STEEM StakesteemCreated with Sketch.

in busy •  13 days ago

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There is no hiding that it has been a horrible year for those who bought and held #STEEM when it reached its high early this year. With prices being down approximately 90% from high to low, you can say that it could be easily categorized as a bad investment from that standpoint. However, I have looked at this from a different angle and have also implemented a strategy that has softened the impact from a financial aspect. More importantly, I never intended nor did I ever invest more than I was willing to lose. Blockchain technology and cryptocurrencies continue to be an asset class that is not only still immature but continue to be highly speculative given the factors in which the underlying assets depend on to create long term value.

Only looking at the price move is not the best way to evaluate progress on the ecosystem nor in your stake. For example, after during a preliminary analysis of my earnings for the year, I have that rewards have been approximately $1,100 USD. This represents over 10% of the amount invested into #STEEM. While this also represents an example of my engagement and effort during the same time period, I also have seen a clear correlation between my earnings and my stake over the period of time I have evaluated. When I compare this to other cryptocurrencies I have invested in during the same time period, none have provided this type of return. Again, not that I spent any time on those protocols but the fact is that those investments did not have even the opportunity to earn for my stakes. The exception is NEO that provides periodic GAS distributions but those returns have been less than 1% thus far as well. The fact that we are able to earn for engagement is certainly not only a hedge for our investment but also an attractive proposition for those considering being part of the ecosystem.

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My main strategy for accumulating my stake in #STEEM has also helped me have a better view of my investment here. Instead of putting my available investment all into #STEEM when I started, I deployed a Dollar Cost Average strategy which has allowed me to bring down my average cost over time. I recently got to the incredible average cost of below $1 per #STEEM given the recent declines. It has also allowed me to accumulate much more stake than I would have by buying it all at once. For example, if I would have put the total amount invested in #STEEM this year in February 2018, I would have only been able to accumulate approximately 2,500 Steem Power without considering earnings. That means I would have not even been able to get to Dolphin status at that point in time! I would have also had a more ugly loss at this point considering the actual price.

With this latest update in average cost, I now need the price of #STEEM to grow by 400% to breakeven for my purchases. When including my earned stake, that figure goes down to about 300%. Overall, not too exciting considering that there are not many assets that can really give those returns. However, considering the earnings power generated by the increased stake, it makes the effort and investment more viable over a long term. Given the Dollar Cost Average strategy, it has reduced this amount significantly as not doing so would have required a more than 10x increase to breakeven! This clearly demonstrates how scaling into position helps hedge the fact that it is nearly impossible to catch a bottom in price in almost any asset sold on an exchange. It has also helped accelerate the stake I have been able to grow over time.

The increase in stake has helped grow Steem Power organically as well as the inflation of the protocol also compounds over time. Currently around 9%, the growth of Steem Power will help offset the losses over time. In addition, the increased stake has also led to improved curation efforts as it influences the weight of the distribution as well. Although I cannot give any figures yet, I can clearly see a correlation between stake and curation rewards as my stake has increased. That is despite me not seeking optimization strategies with curation as I continue to mostly manually curate content I enjoy without paying attention to when I vote. I have recently found a consistent stream of good authors that I have started to provide auto-votes but I still mostly manually curate.

However, the huge caveat on all of this is that the investment will remain viable as long as pricing stabilizes. Dollar Cost Averaging is a horrible idea, like any investment, if the price goes to zero. Many would call it “trying to catch a falling knife,” but I believe in some of the fundamentals behind both the blockchain technology and social aspect of #STEEM and the value being created. As we have seen much more lately, the value of the community supporting development and decentralization is enabling an ecosystem on which plenty can be built on. These are not conceptual project either as many are currently being actively used by the community as see by the latest State of the Dapps update. In my opinion, these projects will start to demonstrate the capabilities and benefits of developing on #STEEM versus other protocols. As the development of protocols begins to consolidate given the drawdowns in prices, my opinion is that #STEEM will grow to be a competitive alternative for many more projects. Therefore, I remain committed to fostering positive engagement in the ecosystem supported by continued investment of time and capital as the value continues to be attractive for me.

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DISCLAIMER: The information discussed here is intended to enable the community to know my opinions and discuss them. It is not intended as and does not constitute investment advice or legal or tax advice or an offer to sell any asset to any person or a solicitation of any person of any offer to purchase any asset. The information here should not be construed as any endorsement, recommendation or sponsorship of any company or asset by me. There are inherent risks in relying on, using or retrieving any information found here, and I urge you to make sure you understand these risks before relying on, using or retrieving any information here. You should evaluate the information made available here, and you should seek the advice of professionals, as appropriate, to evaluate any opinion, advice, product, service or other information; I do not guarantee the suitability or potential value of any particular investment or information source. I may invest or otherwise hold an interest in these assets that may be discussed here.

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Great post @newageinv! Really appreciate your perspective on not just "jumping in," as I and many others did, but staying the course and remaining engaged, in spite of the market in 2018. As you well know, I have done the same. Time will tell how smart we were!

"Although I cannot give any figures yet, I can clearly see a correlation between stake and curation rewards as my stake has increased. That is despite me not seeking optimization strategies with curation as I continue to mostly manually curate content I enjoy without paying attention to when I vote. I have recently found a consistent stream of good authors that I have started to provide auto-votes but I still mostly manually curate."

I extracted this as it stood out to me, knowing how much of your time you must be investing "in here." $$ is one thing, time is quite another. Do you have any approximation on that? Daily, weekly, or however you might be keeping track of that? And if that is too probing a question, not a problem, as I respect that

You are among the small group that encourage me to keep going. Reaching dolphin status has been significant for me, as presumably it provides an indicator of how much "influence" we have in our engagement efforts. I think that is vitally important going forward. Again, time will tell!

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Right now, I am looking at my feed 3-4 times a day for at least 30 minutes at a time. My morning and night routines are longer because I set myself to leave to work and go to sleep by leaving my feed engaged. It has been tough to keep up to be truthful and recognize it is not sustainable but I feel the opportunity is so great to accumulate at these prices and create a base now that activity is down that I press myself to do so everyday. Despite this, I still feel I miss incredible content but we can do but so much. The importance for me is how to adjust going forward by ensuring that my time is spent where value is added and for me that is motivating users with great content and educating newer users as well as supporting minnows to be.

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Unfortunate the disruption in our engagement here @newageinv, but my full-time job and family responsibilities come first, including needing to leave for work yesterday (and again this morning, in a little bit …). Unavoidable, at least for now.

” It has been tough to keep up to be truthful and recognize it is not sustainable …”

Sustainable. That is certainly my key word. Coming to terms with how much time on Steem I can realistically invest. $$ are one thing. Time is quite another. Last summer, I knew the time and effort I was putting in then “in here” had too high a price tag on the impact on my life “out there.”

With that said, I am still honestly working on establishing a “rhythm” to what I am doing. After almost 7 months, it is still somewhat a “work-in-progress.

”… adjust going forward by ensuring that my time is spent where value is added and for me that is motivating users with great content and educating newer users as well as supporting minnows to be.”

You are doing a great job on this, from my perspective. For which you should be commended. Do you find your interaction with new Steemians results in much dialog with them? That holds up over time?

My focus has been on the PIFC Community, but have been trying to figure out a different “rhythm,” so I can invest at least some time with brand new Steemians. Haven’t really got there yet …

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Thanks for your feedback and engagement! It is truly of the most valuable I have here in the ecosystem. Unfortunately, while I do get engagement it is not as much as I would like which is why I try to go out and do it myself. I think it is more a fact of how low the numbers of users has been lately which I hope reverses soon enough.

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Thank you @newageinv ...

"Thanks for your feedback and engagement! It is truly of the most valuable I have here in the ecosystem."

... right back at you! 👍

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I also wound up with a final average of about $1 because I bought in gradually. I’m not buying more at current low prices simply because this coin represents too large a position in my portfolio already. I also appreciate the returns I’ve received on my investment over this year. Also about 10% for me. Since I enjoy participating here that’s a great return. Much better than the zero financial return I’m getting on any regular social media site.

On the whole it’s been a good ride and I’m still telling people about it as a favor to them. I hope it truly does turn out to be one. Time will tell.

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I honestly feel so great of having an average cost below $1 as I would have never imagined it when I started!

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Sorry I didn't get to comment earlier. This was a really interesting view and it is nice to see traders/investors like yourself and @indigoocean posting these kinds of things and actually recognizing the value here.

400% for break even is nothing ;)

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Thanks! I think it provides great perspectives for those, like me, who come into for one reason but stay for others! I continue be impressed by the ecosystem’s potential and want to make the most of for the community which will also payoff in the longer term for those who have invested time and efforts (in addition to money).

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I read it on my way to work this morning and It gives me a positive view of the professional community. A lot of people find themselves here (like I did) in some desperate circumstances but like yourself, not all. That leaves you with quite a different perspective, approach and experience that many can learn from.

Great post, I too approximate that I need steem to go up 400% to breakeven and I don't think there is another platform that offers the same immediate ROI?

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400% is daunting but given how assets in the class have moved and the internal economy, it is totally possible to have a great pauback over the long term.

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For me, throughout the year I've gone all in on Steem. I've noticed the other cryptos that I bought are loosing value and I never used them. As you pointed out with Steem at least you can use it through curation and delegation as well as self voting content you create to help grow it.

I had some Neo for the gas as well, but got tired of it just sitting there loosing value when I could be using it on Steemit or earning passively with delegations.

I quit worrying about diversification in crypto as most of the assets move together.

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Yes, I too have been less active diversifying into other cryptocurrencies although I may add to some in the short term to also dollar cost average lower. However, it will only be on a select few that have good opportunities. For example, I am considering getting some more Ether as they move into POS and could potential get into staking for income. I still do not know enough about it but it is interesting.

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Yeah I'd like to get some more ETH as well at some point along with NEO.

Passive income is always a plus.

I just come to the realization that I could upvote my own posts and earn more passively than what I was earning with staking.

the average will probably go down as you buy more Steem for so cheap evening out the earlier purchases that are a bit more pricey in comparison to now


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Hi @newageinv!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 3.810 which ranks you at #4556 across all Steem accounts.
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