Misconceptions About Steemit That Lead To Powerdown...What Are The Effect Of Powerdown Part2

Hello friends,

It is with a heart filled with joy that I come before you all today, to conclude the important discussion we began days ago.

I feel happy whenever I appear before you all, it gladdens my heart to relate with you all on matters such as this.

In our last discussion we learnt about what powerdown means and the misconceptions people have about steemit that makes them powerdown.

Today, we shall proceed to the next phase on our discussion on powerdown.

Many on the platform might have enough information about powerdown but I do think newbies have enough information to make them detest powerdown.

EFFECTS OF POWERDOWN ON STEEMIT

• REDUCTION IN PRICE OF ITS NATIVE TOKEN

Source

One very ugly effect of powerdown to steemit is that it leads to reduction in price of steem.

Whenever there's a massive powerdown on big accounts on steemit, it usually have a noticeable negative effect on STEEM token.

The creation of STEEM hardfork (hive) led to numerous powerdown from different users and this led to a drastic reduction in steem price from $8 to $1.

This is to show the effect of powerdown on steemit.

• REDUCTION IN VOTING CAPACITY OF AN ACCOUNT:

This aspect occurs in two ways, it affects both the account powering down and the account not powering down.

To the Account powering down, it reduces their influence on the platform.
They won't be able to add monetary value to the post of anyone.

For example, an account with 1m steempower initiates powerdown and completes it's powerdown, it will be impossible for such account to add influence on anyone post.

Another disadvantage of massive powerdown is that after the price of steem token has been reduced, the monetary value of most account reduces.

Right before this bear market, the 100% vote of steemcurator01 account gives a total of $200 vote but now the 100% vote of steemcurator01 give $144, just as shown below

• REDUCTION IN THE SYSTEM REWARD:

Those that have been in this platform for a long period will be able to remember that SBD is part of the reward of steemit platform but now, the SBD reward has been taken away and this is due to the drastic reduction in price.

Whenever the value of STEEM reduces, the system fails to print SBD and whenever the price of STEEM stabilizes the SBD printing will come back, check the screenshot below.

• IT TARNISHES YOUR IMAGE ON STEEMIT:

Another effect of powerdown is that it gives one a bad reputation in steemit.

The steemit team will not have interest on the activities of such individuals and such steemians will not be supported with upvotes.

Powerdown is like snitching up on the steemit team since we know that we need steem power to help stabilize steem price.

CONCLUSION

In conclusion, powerdown is against the ethics of steemit.

We should endeavor to engage in power up inorder to stabilize steem economy.

I hope with this article, we would be able to join hands together and make steemit a better place