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RE: Falling STEEM/SBD Price - Proposed Solution to the SBD Debt to Marketcap Ratio Problem
Hello @timcliff, I'm new to your posts and so far find them to be very informative and thoughtful. my understanding of the financial workings of Steem and Steemit are so very limited but I'm learning a bit at a time. I'd like to ask a super basic question - in the light of what you've written here, it is helpful to power up at this time? It seems like a good idea to me but I'm just clueless enough to misunderstand the big picture. Please advise, thanks!!
It is generally not advisable to hold liquid STEEM for very long, because the price will usually be on a downward path due to inflation.
If you are interested in "investing" in STEEM for the long term, in hopes that the project will become a success, then powering up will give you "vests", which are protected from a large portion of the inflation by adding more STEEM to your vest over time.
Also if you power up, your votes will have a little more influence. Not much, but if you keep adding to it over time, it can start to add up.
It should be noted though, that any STEEM you power up is subject to the two year power down period if/when you eventually decide to cash it out.
thanks so much @timcliff, very thorough and helpful response, I understand now.