Vlog #36: Thoughts on Steemprice and a question about Rewards vs Votingpower.
I can not for the life of me understand why anybody would still power down their Steempower and sell it unless they have debt or other important bills to pay or know a better investment.
Steempower has become so much more desirable after the hard fork. I went from being able to give away $120 to $700 worth of STEEM a day.
Apparently, I'm not the only one that realized this because the power down difference for next week is: -20%.
To me, this says that there will be less liquid Steem on the markets in the coming week.
There is a small catch though.
There are some big accounts that have already powered down part of their Steempower before the HF19 and are sitting on substantial liquid Steem right now. It will be interesting to see if they power this back up again, sell it or keep it liquid.
Never a boring day on the Steem blockchain.
I have noticed a small decline in my voting power (from $80 to 70$ @ 100% voting power). I'm assuming this is because bigger accounts are voting more having a bigger say how the reward pool is distributed.
A question I'm trying to find an answer to is whether the price of Steem has any influence in the amount of reward I can give away.
For example. At 2$ Steem I can give away $70 worth of STEEM @ 100% voting power. Will this still be $70 worth of STEEM when the Steemprice is $100?
I talk about my thoughts on Steemprice more in my vlog.
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This is the exact conversation I had with my wife yesterday and is to be the focus in my blog later today. I , like you, think it very unwise to power down at this time b/c you will never recapture the value you are giving up in Steem. It's much too valuable right and to you'll have to buy it back later for more $$ as Steem price increases and will have lost out on the added influence you had. If you really need the money, it's understandable, but other than that, I think it rather unwise.
This is the way I look at it, if you invest/have an account of 1500 Steem per se, valued as I write this at $3,300 with a Steem price of $2.20, your upvote should be roughly $1.50.
That allows for 10 upvotes X $1.50 to equal $15.00 Steem to give away daily.
Let's say you give half away to curation & keep half. $7.50 curation$7.50 you keep.
So you're making $7.50 per day, X 7 days = $52.50 per week
$52.50 per week X 52 weeks = $2,730 per year
$3300 initial Steem account = 83% ROI yearly
This is not taking into account any rewards you will have received for the whole year, your Steem power increasing during the year allowing for more influence and more voting power or the price of Steem increasing one penny. You can quickly see how investing in Steem Power is quite possibly the best long term investment there is today. I think as more people learn the incredible value of holding Steem Power, you'll see less and less of it available. Great post as always. Fire up that Green Egg and enjoy your weekend!
I had the exact same question @exyle and am really looking forward to hearing the answer. From what I've observed, it seems to me that everyone has a little less than 1% of total powered up steem token balance to give away each day in dollars (ex. 10k in steem tokens, can give away $90-$100 each day without draining vp). My gut is telling me this will remain the same, which will ultimately drive price of Steem tokens up until a balance is reached on return on investment of buying more steem tokens. If this is the case, we still have a long way to go before reaching that balance with an amazing near 1% a day return, but it seems to be much more sustainable if this is the case instead of $ value of votes going way up everytime steem token price goes up, even w/same amount of steem tokens powered up. I may be way off but that is what seems to make sense. Really looking forward to finding out and HODL is def the way to go either way! Early adopters who HODL steem tokens will def benefit the most. Thanks for the great post as always.
Thanks for sharing your thoughts. I also feel it makes sense. But I don't have solid evidence yet.
You make some great points, which are easy to forget in this post-HF19 goldrush:
Tokens will be much more expensive to buy in the future, and they'll be far fewer given out as rewards.
I kind of scratch my head when people cash out what little coins they have for trivial reasons. I don't think they quite grasp how the Steemit economy works (assuming they believe in the platform).
In the future, you won't be paid anywhere near this amount of tokens for photos of your lunch! xD
I totally agree. In the future earning Steem will be harder and harder even though you might get more in $ payouts. It's really something you need to consider when selling Steem today.
Hi exyle, nice to see your development with the vids and everything else. I am only manually voting and am low on VP but soon I'll vote for you again!
Hi, shla-rafia. Thank you, that's nice of you to say. I hope you are doing alright.
I'm alright. Had to power down while promoting steemit 16 hours a day while others have a hundred thousand on their accounts and don't borrow me 300 euros. Great project and community. How many users didn't join because they saw that antisocial behaviour is speculation
Hey @exyle
I powered down for about a month and it was, exactly as you assume, because of debt. I have a £10k credit card to pay off.
A year ago, hell, even 6 months ago, I would never have imagined Steemit.com would help me get rid of this debt but sometimes, I love being proved wrong!
I've stopped my powerdown now and as soon as I change the BTC into £ and pay it all off, I'll be powering up not only myself, but friends too - share the wealth, we all benefit!
Good post, thanks for sharing!
Powering down to pay debt is a solid reason.
Yeah, it was the ONLY reason I would have powered down.
Last time we met in the evening after SteemFest there was you and 3-4 other people on the table. I had zero money and you knew it and still you didn't buy me a drink or so. Sharing the wealth.. I promoted Steemit to more than 5000 people in person so that you can power down while having thousands of monies. Sleeping on the street in the winter. Sharing the wealth looks different to me.
Hey @shla-rafia, I'm so sorry that the food we bought and shared with you wasn't enough.
I'm sorry, you are right. That was a big mistake I just made. Please accept my apology.
I think you was wise to power down and pay of your debt.
It'll make you sleep better at night, and give you a more stress free life.
Well, 'stress-free' isn't on the cards just at this moment but it's getting there ;)
Thank you :)
I guess you can give away $3500 worth of steem @ 100% voting power when the price of steem reaches $100. Steem has become much more exciting after HF19, nobody should think of powering down, however they can cashout with SBD from 50/50 post payout.
When I first joined steem I made $80 and I withdrew half of it to pay for a nice dinner.
Since then I have bought back in with $250 worth of BTC and powered up!
Long live Steem and prosper!
Good morning chap. I've been buying almost weekly for two months now and powering everything I have up and back into the platform.
It didn't take me too long to realise that you need SP to grow yourself, support others, and I too cannot understand powering down at such an exciting time.
I agree that minnows like me need support but we should also be buying Steem, showing that we mean business, and not just relying on votes for our blogs/comments to grow.
More questions than answers today huh! Have a great Saturday 👍🏽
Agree 💯
Thanks, i see that! Also, good work on doing the tests before the main transaction
Haha thanks, def nerve wracking at first!
I like the way you approach the platform. Nice job on buying some steem!
Thanks, same! I'm not finished yet, bits at a time makes sense I think 👌🏽
Wonderful post :) I am actually confused about this myself. I made the assumption as the price of Steem goes up the value we can give way also goes up. However, I am actually not sure about it.
All good questions, where are all the experts at? I'm just a big Minnow 🐠😂