The Value of Steem Power
Dear Steamians,
I am hoping to start a conversation with those who are focused on people not self-voting, and anyone else who wants to jump in. Especially those who are concerned or interested in determining how to handle your current investment in SP. This is not meant to be a fight or a complaint, but rather a conversation.
I've been around since August of 2016, holding my Steem power and posting. I have no doubt I am not the best content creator on the site, but I have to admit, I am now wondering about the value of holding my Steem power. This isn't about not getting enough votes or being unhappy with my upvotes. When I review my posts most of them have earned a fair amount for what I put into them. (I have been surprised by a few either up or down) Mostly they earn about what they are worth.
I am not an Author nor a want to be Author, but I do enjoy posting an occasional story, opinion, random thoughts, and interacting with others online. I do still hold a Facebook account to interact with friends and family, share photos, etc. I just can't see that type of use here.
So, let's pretend that I can't vote for myself without scorn from the community (I've never been a big abuser anyway) why should I hold my Steem in Steem Power vs. on Bittrex if my main motive is "influence"?
I understand SteemIt isn't a fun place if we all just sit around and vote for ourselves or bid on the votes that are being sold, but it isn't that fun to hold an investment in a state I can't use the bulk of it for 13 weeks either. If your only answer is speculation then why power it up?
According to Steemwhales.com
Here are the stats on my account:
Rank Name Rep Steem SteemPower SD Est.Value
#1026 whatsup 67.94 612 7,898 29 $12,660
According to Steemnow.com
Your 100% upvote is worth:
$1.69
Let the discussion begin:
Pros and Cons in holding Steem Power. (Not meant to be about whether or not Steem the currency is good to hold for speculation reasons)
On voting selfies... I'd be willing to stop upvoting myself (ok, that was a distracting phrase) once enough other people are willing to upvote me. Until then, you get it where you can.
Yes, well said!
I join jimitations, I wanna stop upvoting myself if Something changes and people upvote eachother more :)
I am about to power up, but after reading into steem a bit more I have my doubts about how inflation could drop the price of steem
From reading the replies it seems that most people have no idea how steem works nor steem power.
From what I read holding steem is a bad idea as steem itself is inflationary 100% a year if you are not holding steem power.
By holding steem power you are better protected against inflation as for every 10 coins that are added to the market you will get 9 back. So I understand?
Which basically means that people holding steem power could have 11% inflation.
You have ofcourse more steempower and more influence in terms of how much your upvote is worth and you could by actively participating overcome that 11% inflation by making money through your content and participating in the network.
So this is a genuine question, what stops the steem power of becoming worth less if whales are dumping even more coins on the market which they earned from increased steem that they received from holding steam power more and more steem floods in. From what I understand 80% is held by the topwhales and due to holding it in steempower they will just increase their amounts. Due to the incredible imbalance of distribution of wealth they can effectively continously power down their earned steem forever and as long as steem has even the smallest value still make tons of money,
So holding steam power you are fully at the mercy of how many people (whales) are actually powering down versus what investments are coming in.
On top of that you have to be active every day to at least counteract the 11% inflation rate.
Please point out where my stories doesn't make sense and why it should be viewed otherwise so I can feel better about putting money into steempower 😄
What an excellent response. Funny that you are considering the same questions that I am, regarding the same topic, maybe that is why I relate so much to what you had to say about the topic.
Let me try to add my thoughts to yours..
Inflation - Due to the inflation, we will have to create demand for Steem. If one thinks crypto is going to "catch on", having an increased supply might be a good thing. I also think that if demand was weak and we suffered a large loss in price there would be an opportunity to adjust our inflation rate and handle that with a hardfork. (This would like only happen if things were quite bad)
Nothing stops Steem Power from losing value when the whales power down if they sell. It is purely speculation mixed with supply and demand. You are correct that the distribution is an issue and has been since the day I got here. A thought I have is that SteemIt the site could before an attraction which could bring visibility to the currency of Steem, and hence attract investors vs. traders. Where people gather an economy forms. So, if we continue to see widespread usage and new users, I feel it is only a matter of time that others will be willing to purchase the steem any whales would like to get rid of. traffic stats - http://www.hypestat.com/info/steemit.com
True about the active every day part, but as I am sure you have gathered we have a wide array of voting bots to keep our accounts active even if we are not.
My background is corporate america in the healthcare technology sector. So, my crypto knowledge is still under development.
I appreciated your comment very much, and look forward to seeing you around SteemIt.
You are welcome, I am still very much learning as well so if any content I put up is wrong let me know.
I did decide to buy steempower as I believe steemit will continue to grow exponentially and it's uniqueness and potential will attract advertisers and investors from around the world once steemit goes to the masses..
Also the top investors/ creators generally are proud of their baby so they most likely want steemit to succeed as well, but that is just pure speculation. Them powering down also has a positive side, as power is more spread amongst the participators.
The following link explains what steem dollars do, the rewards by posting and upvoting are eventually payed back in steem dollars. Where does this money come from?
Well the higher the marketcap the more steemit can loan and distribute as steem dollars amongst steem power holders. (same as what a bank does with mortgages putting equity, they use real estate as colletoral to loan money) These steem dollars can then be transferred back into steem or powered up to steem power.
The above info I took out of the great posts below!
https://steemit.com/steem/@steemrollin/steem-where-does-the-money-come-from
https://steemit.com/steem/@bitcoiner/steemdown-com-which-whales-are-powering-down
We should really try to make a simplified version of the explanation so that everyone can understand this. It took me days to actually find out how the system works and even now there are still some mysteries to solve for me. For instance I read that one of the more important ratio's to look at before buying steem and powering up is the Mvest to usd ratio. Or MVest to steem ratio.This figure can be found on: http://steemd.com topright.
hope this helps as well. If anyone else finds info to share I would love to hear it.
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The value of holding steem power is that your upvotes have more value and your curation rewards also increase. (As far as I know, that's all...)
agreed.. if you vote for curation rewards, which would add even more votes to the content that gets upvoted each day.
OK but if you have $20k value in SP you want to see some ROI on that, correct? So power some down (less than you are earning) and you will see profit plus your SP will contunue to increase. Good idea?
Are you making comments on old posts so you can vote on them? I don't care at all and nobody else is likely to see this.
So, yeah.. A person can pull out some SP if they want to as a way to gain some cash.
However, I consider it borrowing from my own capital.
Well you so smart! I was searching for the value of Steem Power actually, apologies for finding your article! If you dont care why bother to post at all? Oh you are just in it for the money? Yeah!
haha, don't be so sensitive. I was going to tell you just to upvote yourself. :)
My votes are worth next to nothing as you can see... any more questions you don't want answers to?
Aw, I didn't realize your skin was so thin. Sorry I asked.
When you post it is immortalised on the immutable blockchain. You cannot delete it EVER. Steemit posts are also searcheable on google. Care or like it or not.
I've always heard holding steem power is good for a long term investment, especially if you believe seem will go up in the future like I do. Some people have said they earn interest from their steem power.. is this true? Either way, I don't have a problem with people upvoting their own posts. I understand that it took most of them some time to build up their influence to where it is
I think holding Steem is a good investment, my question is why power it up.
I am unclear on interest being earned on Steem Power, I think there might be some type of compensation to try to offset inflation, but I am unclear on how it works, and how to get to a technical document that is current and that would explain it.
I hear you. I think the main benefit is to have more influence on the site. It just depends on how important to you that is. Also the price of steem fluctuates so much..I think it's safer to hold steem power or steem dollars. But I need to research that some more to be sure
Vote for yourself!
There hasn't been a reason not to so far.
Personally I haven't been doing it lately but I think it may be reasonable to take this approach:
If you can't find great content on Steemit, worthy of an upvote, upvote yourself as a reward for looking for it.
Until a circular economy is developed there is no reason to not do that.
You could also loan out your SP and have a better return, vs just selling it. And that way you still help out by not sucking up the rewards pool.
Yes, I have been considering renting out my SP, or powering it down and investing in a Steemy project.
Awesome! I have a couple tricks up my sleeve if I can ever find the time.
And what it's a Steemy project? Sorry, newbie here haha
Can you rent your SP? How? :o
You can delegate it to someone like Smartsteem.com and they give you ROI plus your delegation back at the end of whatever period it is.
Well said man.
Upvoting oneself? Powering up? Illiquid Steem? I'm new here and I haven't grasped the meanings and subtle implications of all this jargon yet. It's kind of making my head spin, though--on the inside, metaphorically speaking. If it were spinning on the outside, like the girl in "The Exorcist," that would just be weird.
lol
I never upvote myself. Mainly because i don't have the steempower at the moment. But i wil always upvote others.
I'm just a noob here, so my opinion may be miss-placed, however, from what I have seen so far, I would say that by holding SP, you attract more upvotes from people curating than if you had less SP. The noobs mostly seem to gravitate to the whales and dolphins in the hopes of catching some scraps, while other whales and dolphins don't want to waste their votes on minnows. So the more SP you have, the more you attract upvotes and the more you make. When you power down and lose your voting power, you become less desirable.
Like I said, this is just my observation and since I didn't do any in-depth study of it, I could be way off the mark.
Nods, yeah. I think that is what I thought was going to happen. :)