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RE: It Is A Good Time To Power Up!
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