How much are your rewards worth?
Just claimed my current rewards of 0.014 STEEM, 0.187 SBD and 0.206 SP. How much are they worth? Honestly that depends on how you view things.
Today as I was reading a post by @tarazkp titled Work For Your Community it got me thinking about how some are viewing things completely wrong. They are to busy looking at the daily ups and downs and the fiat value of their payouts. Then it reminded me think of a blogger who recently deleted the content from multiple posts (as in almost all of them) because he felt the content was worth much more then his rewards.
I have no intention of selling any Steem or SBD today so the current fiat value of my rewards just doesn't matter. This isn't a way to pay my bills so today's value just doesn't matter to me. It's so easy to look at the current market price and assign a total value of $1.09, here is the math (0.206 SP x $2.83) + ( 0.014 STEEM x $2.83) + ( 0.187 SBD x $2.51). And if you need to sell today to pay bills then you are correct. But if you are holding it for any amount of time that number is completely irrelevant.
Until you sell anything the "value" is hypothetical and unrealized. This is even more true in the world of cryto since by tomorrow the price can rise 50% or drop 50%. Just waiting one day makes using the current price nonsense if you are trying to assign a value to what your rewards are worth unless you sell it the second you redeem your rewards.
Source: Pixabay
So what about all of us that plan to HODL?
Those of us that plan on holding for say 2 years, what is the value of the payment to that person? Honestly it's really hard to say as we can't know what the price of Steem will be in 2 years, but I have assigned the value that I feel is completely possible and realistic to my thought process for looking at rewards. My belief is that we will see $20 Steem and SBD will continue to move right along side the Steem value no matter how much some want to see it pegged to $1.
| So using this potential $20 price point the rewards look very different on the small amount I collected today. With a total value of $8.14 cents, here is the math (0.206 SP x $20) + ( 0.014 STEEM x $20) + ( 0.187 SBD x $20). As this is the price I am predicting in 2 year as my low side that means the small Rewards Claimed have a value of $8.14. |
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Now I'm not saying that $8 is something that changes my life, but it's not bad for a few comments that were made while watching TV with my Wife. This was time that otherwise would have been completely unproductive. Plus this gets powered up there is a compounding effect to the earning, but we won't even get into that aspect for this post.
But what if we are really onto something here with Steem? What if SMT's cause huge demand, the US figures out their regulations which will allow institutional investors to invest in cryto, and all of a sudden there is serious levels of FOMO. Could we see $40, $50, or even $100? I don't know but if we are looking 10 years down the road these prices don't seem completely insane do they? Feel that we are in very early for what will come of Steem and the future will see a very large run up in prices.
My views on Steemit
To me Steemit isn't a get rich quick plan, but rather a way to build a better future using time I would otherwise be wasting. Now I get to invest this time into building a community of like minded people who like to help others. A community that will work in a mutually beneficial way to help elevate each other with positive reinforcement for producing good content while helping the overall steemit community grow at the same time bringing more friends into our little community as time goes along. A community of friends that hopefully I will get to meet face to face one day.
What are Your Thoughts?
So how do you value your current rewards? Do you focus on today's value or what you feel it might be worth in the future? Are you here for the long haul, or just a quick hit trying to make a few bucks?
Heck am I completely crazy for thinking like this or does it make sense to you?
Make sure to enter my Pay It Forward Curation Contest - Week 2 and help point some much needed attention on a few smaller members quality work....Plus earn a little for your efforts!
In a chat today people were talking about the price and how it feels when it falls. And as you have rightly said, 'it doesn't matter' until selling so for the holders, who cares? This is why I find it interesting when people are "not in the mood" to post when price is down as it indicates their short-term views of the value of the platform. Yes, it is nice to have large payouts but looking long, they are all large, some just might be very large in two years.
More it falls the happier I get honestly...but I see that differently then most. The crazy rise that happened wasn't something I expected nor did I even kind of think it would last. As I wasn't in a position to sell anything really the rise just didn't matter in my overall plans.
Now is the time to accumulate as much SP as possible IMO. Those that want to wait until the price rises are going to miss out on what could have been larger rewards once the market does rise.
You and I are on the same page here; in it for the long haul so the price is pretty irrelevant. It's the same way I've viewed my 'other' investments my whole life. The ups and downs didn't much as long as the overall trend was up. That's how I view steem, and I have faith that it will be 'big' one day.
I don't really have any intention of selling my Steem for years. I managed to power up quite a bit just before the jump ($1.72) so am sitting on a tidy profit I suppose. But as you say until it is 'realized' then its just a figure.
Paper profits and they really mean nothing. I was a millionaire once, on paper with stock I couldn't sell as it was restricted, by the time I could sell it I might as well have wiped my ass with the stock certificates. That will teach you about real profits vs unrealized ones real quick.
But it's still nice to buy and have the price go up some so your vote value increase even more then expected. That is the nice part about holding steem, you get added vote value while hopefully your asset increases in value.
Yes! I noticed my vote value has increased today. It seems it takes a 7 day average, or that's what I hear. If this is the case, it will continue going up a little more in the next few days. Steem is at $2.69 right now, its slipped a little from the $3 high of yesterday.
Do you have an interest in the regular stock market these days too? I do, but there seems little interest on Steem so I don't write about it.
Yes a 7 day average is what is used for the vote calculations so we should see increases for the next couple days very likely.
I watch the US markets closely, but also keep an eye on the Asian markets. Also and a stacker so follow silver & gold.
It is one of the noblest ideas I have heard on this network, even when we are flooded with voting bots, I feel that we can grow and help everyone in our community to do it, get into steemit out of curiosity and now I spend hours reading and interacting in the comments, which I enjoy a lot, although my goal is to last a long time here, the rewards help me pay a lot of bills :).. Of course, the economic situation of my country is far below high sustainable, the most important thing is that I like this community and I learn a lot from it.
Happy afternoon
Forgive my mistakes, I don't speak English.
The translator did great.
Thanks you for your kind words. It is fun reading posts and comments. There is so many different ideas and views in the world that you just don't get to see without a platform like steemit.
If you get a chance join my Pay It Forward Contest. There are some prizes and everyone gets some upvotes out of the deal. Might help a little with some bills.
That would be great! Most of the contests are in english and I'm afraid to fail, but I'll take your invitation, thank you for your comment, I wish you a happy afternoon.
Don't be afraid to make a few mistakes, I not overly picky as long as you feature 3 other bloggers who have a lower reputation score then you and one that you previously didn't follow.
count on me!
I am definitely planning to keep my earnings here on steemit, safe in my wallet. I think HODL should be the word for next few years. We do not know - maybe even newbies like me could be early investors in the grand scheme of things.
Keep holding and working on building your little community to support and be supported from and long term I think you'll do fine.
That's the idea. Thanks!
Very well said. It's not the easiest of mindsets to achieve, apparently, since people walk away from Steemit when the price goes down, but if you do get into the long term thinking rather than what can/should happen in the short term, you're golden. $20 USD STEEM sounds awfully good to me, particularly if that's actually the new bottom after it's gone up to $30 or $40.
It's all in the perspective. It takes time, and patience, just like anything else of value.
That said, it seems a little sunnier when the price goes up, too, so there's that.:)
Productive mindsets as a whole are hard to achieve many times as it requires seeing much further out. The interesting thing is that by looking further out into the future you realize that life isn't nearly as complicated as we make it. It becomes much easier to go with the flow as long as the general direction is taking you where you need to be.
Agreed. I know I end up looking at my Steemit wallet (when it works) way more than necessary, just to claim the rewards. I guess I could wait until the end of the day to do that, but that's still daily looking at my account balance. Which is fine. I got pretty good at not worrying about the price going down, but if you somehow busy yourself with other things, maybe you can get yourself to the far thinking mindset.
Just look at each reward with the $20 price attached to it and then it might help with not looking at the balance so often. If my time frame is off and it takes 3 or 4 years, our rewards will look pretty good then.
I totally agree. It already looks better with essentially $1 raise in value, so even jumping to $5 or $10 is going to be a major deal. Then we start kicking ourselves for not getting more STEEM. :)
I already am kicking myself. Was ready to buy but woke up to $2.50 steem and said to myself...the price will drop later today. Later it was $3.30...lol. So now trying to wait for a drop back down below $2 to buy a little more.
It depends if you need the cash now or if you're a HODL'er and can wait indefinitely.
Namaste, JaiChai
My thoughts exactly. If I weren't on Steem, I'd be on Facebook discussing stuff with my friends and posting photos, that is, doing exactly the same as here, the main differences being that here, I get paid for everything and nobody is (currently) data mining every little thing I do or say. The choice between fattening my own wallet vs. Zuckerberg's is not really a choice at all.
I'm sure with all data being available and here forever someone is mining the data or will, but that is partly why I keep things a little anonymous. I never did any of those silly app on FB anyways so my data was safe, but if we start seeing apps like that here I will be banging on the drum for massive flagging efforts.
I personally wanted to blog since the early 2000's and I did some stuff online, mostly on forums. Launched a few websites, learned design, hosted a podcast, but ultimately found steem to be the catalyst for entering blogosphere. I don't even write a lot, but I enjoy reading the stuff that I see here as most views are not dominated by the brainwashed mass-adoption platforms like facebook. I like my niches. There are plenty here and I enjoy being a part of the whole steemit tribe :) Long term, for sure.
Sounds like we did a lot of the same stuff. Never did any podcasts except twice was the guest on them. But I did also do SEO work on top of designing a few websites and then learned to design blogsites on the wordpress platform before anyone was doing it as they were really powerful in google's search results the way they indexed.
I've always had an issue with Facebook...me too me too mindset of the sheeple gets old and people get very upset when you post opposing views. Actually have a cousin made this scathing post about me (without naming my name) since I supported a candidate and party in the last election and like a certain post which then showed up in his feed. Then went on to call me all sorts of name ans so forth. Told him that is he had an issue with me he should of given me a call like an adult and talked about it, not make a post about it. He blocked me on facebook and wouldn't return my calls. He had gotten so sucked into the mainstream media's nonsense that talking to me was unthinkable in his mind. He didn't even come to xmas this year so to this day we haven't talked...sad. BTW, my support meant I went to the polls and did my thing, not that I went around and reposted 8 things a day bashing the other person like he was doing.
Again a splendid post. Lots of people dropped out because of the low value of Steem. As just as the one you know, they don't think that it was worthwhile to keep on posting.
Let's take some different figures. A point which would have paid out, 3 days ago with a value of lets' say $1.8. Could have been converted to 1 Steem. If the same post would have been paid out today, it would be worth only 0.5 Steem. That was why I did keep on posting and harassing people with my comments :)
Just like in your case, I don't plan to pay bulls with my steem earning. I don't give much about the value.
For the moment I never have made a loss with my crypto investments! Just because I didn't sell any of those. So I do have a virtual loss, and I did have a virtual profit!
In you post you are comparing the price now and the price, which it could be within 2 years. But it would be fair to use the same pay-out, in both calculations. You did when converting it to Steem, Steem power and Steem back dollars!
Normally I wouldn't ask the following question: but I do find it important for the Steem blockchain. Could you please take a look at my latest post and let me know what you think about it! I cannot use bots for giving it the attention which it does deserve! I don't know if you are following me, because this should be free at will. So I don't know if you read it already. I', trying to change something for the better! If you don't want to read it. No problem. I will still follow you, read your posts, comment and upvote you. That's not the reason I am asking! I just want to give the post some exposure!
Cheers,
Peter
You are more then welcome to post a link if there is something you think I missed. Sadly as I run 2 business on top of my time on steemit I do miss things.
Also yes I do follow you, but did miss that post.
The lower prices I think creates opportunities in both earning actual SP and that of being able to purchase more SP. Know that some people can't afford to purchase, but seriously any amount that you can put into this is worth considering over other investments and surely more important then eating out at a movie or paying for coffee at a coffee shop or whatever other way people waste money. Those in countries where $20 is a crazy amount of money, blog away with quality content and do it asap while holding every penny of rewards.
No problem with missing some posts once in a while! Offline work is more important. At least to me it is. Would be capable paying the bills with ny steem earnings!
There is indeed in big difference in seeing it as investment than as pure leasure. But I doubt it that those are the people who are raping the pool!
Every not being active is a lost day!
Wish I could pay the bills just hanging out chatting online...wouldn't that be cool. Talk about opening up some choices in life.
Had a lot discussions with the boss a work! Chatting online suddenly became so much more interesting!