There is a lot of talk about a middle class forming on Steem and for good reason. Historically, those economies with thriving middle classes have done well. It is when the wealth (power) is in the hands of the few that things go bad. Naturally, we are seeing this all over the world today.
Cryptocurrency is the ideal solution to the inequality problems. I take some heat from time to time about my posts each month outlining how the system (Steem) is working. Nevertheless, looking at the numbers each month and watching them closely, it is evident that there is distribution.
Now, in my view, distribution can happen in a variety of ways. In the world of crypto, people can buy in, mine, or on Steem, get rewarded. There is also the payment out of the inflation rate as an incentive to power up or running a witness node.
As always, I use the data provided by Steemitboard put together by @arcange.
I put together two charts: One is the number of accounts with 100 SP and the other with 500 SP.
Why did I start with 100 SP?
My reasoning is that, after analyzing it for a while, this is the most important level for Steemians to get to. Hence, if Steem is going to have a thriving middle class, this is the level we need to start focusing upon. I will share the why in a bit.
As you can see, there are 25,441 accounts with 100 SP while 11,224 have 500 SP. Using some of that old math that we all learned in school, that means three are 14,217 accounts with at least 100 SP and below 500 SP.
Most of you will recognize this table from my post on Sunday. This is the penetration rate at each level up to Dolphin.
This also answers why I feel the 100 SP level is vital.
Looking at the table, statistically speaking, any account that reaches 100 SP has a 44.11% chance of reaching 500 SP. Going down on the table, this same account has a 28.73% of getting to 1000 SP and a 9.06% chance of getting to 5000 SP.
Of course, these percentages can change and nothing is guaranteed. Nevertheless, those are the percentages based upon the numbers as they are now.
There is another reason I feel this level is very important. People who have 100 SP had to do something to get to that level. They were active for a long enough period of time to get 100 SP. While it is possible that some was bought, I would believe that most of it was earned. This means they are active participants.
Also, when the next bull run hits, these people have enough STEEM that it could be worth a decent amount. Even getting to the $10 level would put all these accounts over $1,000. This is not enough money to retire on but it isn't chump change to most of the world.
Using the 44% and 9%, if these hold true, we will see:
Here is the account chart @arcange posted that reflected the accounts through 1/1/19:
That would put the Minnows over 15,300 and the Dolphins over 3,200. At that point, I believe you would have a much stronger middle class. Of course, some accounts will move up out of those two categories which is also a good thing. Nevertheless, that is a jump of 69% and 65% respectively.
The point is we would then see even more accounts working their way up the scale.
I bring up this point to make everyone aware of the importance of these accounts. It is easy to feel like one does not matter with an account of only 200 SP. These stats show that is not the case. Tomorrows Minnow is today's Plankton.
At the same time, it is also easy for the Dolphins+ to overlook these accounts. This is a mistake because they are vital to the future health of the ecosystem. The more people we get into the 500-5000 SP range, the better. Those people, presently, are between 100-500 SP.
The bottom line is we need more initiatives to get SP flowing to these accounts. I am working on an idea that I think might help. I am playing with the numbers to see the feasibility of it. Perhaps we need to set a goal, perhaps for the month of February, to create as many Minnows as we can. It we can come up with an assortment of ideas and implement them simultaneously, perhaps we can have a month where we exceed the average.
Let me know your thoughts on this.
By the way, there are roughly 93K account between 10-100 SP. So there are plenty off accounts that can potentially fill in the void left by any that reach Minnow.
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