It Is A Good Time To Power Up!
After reading about the next hard fork (0.16.0 release) being delayed until at least 6 December 2016 in the Daily STEEM Report by @elyaque I decided to do another Power Up of SP.
Created Using MS PowerPoint ClipArt
Why?
When I visited steemd distribution I noticed the price for 1M VESTS was around $48 USD. The current inflation rate of STEEM will not change to 9.5% APR until at least 6 December 2016. Now is a good time to Power Up to take advantage of the current inflation rate to increase your STEEM holdings even more. That is why I powered up today.
Snapshot from steemd
Also with the next hard fork you will be able to Power Down in 13 weeks instead of the current 104 weeks. My thinking is that a lot of STEEM could potentially hit the market at the same time up to 13 weeks after the hard fork. And that would drive down the price of STEEM to attractive levels. I still plan to pick up some more STEEM in the next 13 weeks too. I am not a trader, I am an investor. In my opinion SteemIt is a project I want to invest in.
And finally, it will be advantageous for blogging and curating to have a good number of VESTS now and after the hard fork. In my opinion, there is the potential for the price of STEEM to rise over the next year. A rise in the STEEM price will drive up the cost of buying VESTS.
Calling All STEEM Power Rangers
Take a moment to evaluate your situation, look over the facts, and you too may find that it is a good time to Power UP!
Your right on looking long term. Which I wish I had extra cash to power up with. I am sending over small BTC faucet claims to power up.
By the way thank you for your continued support in SteemIt. You are one of the top 5 who has been voting for me thank you.
Powering up by averaging in using your BTC faucet is a good way to go. @craig-grant has talked about doing the same thing.
Your content contributions to SteemIt have been very good. It is a natural to upvote good content. And with my new VESTS my upvotes will count a bit more.
Your reputation has been increasing too. That is just as important in the long run as your SP. Keep up the great content creation!
Steem on,
Mike
Thank you, I will. Found the best idea, for me, is to just have lots of fun.
Doing what you love and having fun too is success in itself!
Have a very Happy Thanksgiving,
Mike
Thank you and hope you have a great Thanks Giving as well.
Inspiring stuff!
Thank you!
Steem on,
Mike
I plan on powering up tomorrow. At present I'm limited by how much I'm allowed to invest.
Powering Up tomorrow should be good too. Catching as much as possible of the current inflation rate should benefit us in the long run.
Steem on,
Mike
Will be investing in STEEM POWER As well!
I encourage anyone reading this post to also read and upvote the following excellent post from @steemitguide about the upcoming hard fork:
Steem Update 0.16.0 Infographic Preview, be prepared for the upcoming STEEM Hardfork
Steem on,
Mike
I've been powering up what I can. Even started to direct my little BTC faucets to Blocktrades for SP. I can't afford to purchase outright, but I do what I can to take advantage of the prices.
Your BTC faucets to Blocktrades for SP will dollar cost average you into SP. It is a strategy for investing that has served many well.
Whatever amount goes into SP will take advantage of the current inflation rate and increase your STEEM holdings more than after the next hard fork.
Anytime is a good time to increase your amount of VESTS through purchasing SP because it will benefit you in posting and curating.
And after the next hard fork, if you decide you want to Power Down it will only take 13 weeks instead of the 104 weeks it currently takes.
Steem on,
Mike
I'll be the first to admit I don't know a thing about inflation or economics...the brain does not compute. LOL What I do know is an increase in vests is a good thing. I'm also in favor of doing our best to "break" Steemit while we're in beta to make a stronger product/platform.
Correct me if I'm wrong in my simplified thinking with this stuff but... If we go to a significantly shorter payout period, we will get a larger payout but doesn't that potentially flood the market with liquid STEEM and significantly decrease our vests? I don't know why the change to 13 weeks is a good thing, Mike.
In the short term there is the potential to see the market flooded with liquid STEEM.
In reading the following post, Steemit Education Programme - What are Vests?, Powering Down destroys VESTS.
Now your question has me scratching my head. I'm not sure how Powering Down affects the ratio of the amount of SP in 1M VESTS. I have seen a chart of how the amount of SP in 1M VESTS has changed over time but I cannont find it right now.
In the long run I think the change from powering down over 104 weeks to 13 weeks is a good thing. It should encourage investment in SP. The person investing has less of a feeling that his capital is being held captive.
For example, for investing you can put your money in a 10 year or 2 year bond. You know that you can get all of your money back when the bond matures. If you are uncertain about the future or need better access to the capital, you will choose the shorter term bond as a place to park your money. There are not a lot of people who can afford to lockup their capital for 10 years but there are a greater number of people willing to lockup their capital for 2 years.
It is the same way with investing in SP. Decreasing the payout period will increase the number of people willing to lockup capital in SP.
This is why I see a short-term increase in STEEM hitting the market as those who feel their capital will do better elsewhere power down. Then on the other side of the coin there will be a larger pool of investors willing to invest in SP because they can get their capital back in a shorter period of time.
Please excuse the time it took to answer your question. I spent a bit of time researching how the ratio of SP to 1M VESTS changing over time, but came up blank.
Steem on,
Mike
This post has been ranked within the top 80 most undervalued posts in the first half of Nov 24. We estimate that this post is undervalued by $3.01 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Nov 24 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.
Thank you!
It is an honor to be recognized by "The Daily Tribune".
Steem on,
Mike