Is Steempower a good investment???
I was watching a video by Trevon James @trevonjb today and he mentioned that he had $134,000 worth of Steempower and he felt it was a bad investment because his upvote at 100% was only worth $20. This prompted me to pull out my calculator.
Now please forgive my crude math and my lack of knowledge when it comes to the specifics of the inner workings of Steemit... let's think of this more as a thought expiriment and we can discuss all the finer, nerdier points afterwards. I don't want to do compound interest calculations... nor do I want to add the factors such as the rising (or falling) price of steem. All of these variables are going to remain static.
If you upvote yourself at 100% 1 time per day, that is $20.
I believe that you can put out 10 upvotes a day and keep your upvote at full power. (Again, I don't even have a slider on my upvote yet, so I could be wrong here... but stay with me).
If Mr. James gave himself one full upvote a day... after one year, he would add $7300 (365 times $20) worth to his account. That is over 5% return on investment (which is better than any bank will give you.)
If Mr. James were to go into full on selfish mode and give himself all 10 of his full powered upvotes a day... that would be worth $73,000 (365 times $200), which would be over 50%.
This is simple interest... I am not adding any compound interest here... so the Steempower would remain at $134,000 in this simple math exercise. If he were to power up everyday... there would be a lot more than that. 50% interest is an AMAZING interest rate! Of course... Mr. James also was quoted in this video that "He has too many mouths to feed," to upvote himself exclusively... which is admirable.
But... maybe he can afford 2 full upvotes a day. ---> $14,600 a year ---> 10.8%
3 full upvotes a day ---> $21,900 ---> 16.3%
You are starting to see the pattern here... for every full upvote... add $7300 and 5.4%
To conclude. If you have $134,000 worth of steempower, and steem stays at the same value or increases in value... Steempower is a pretty darn good investment... and you can decide how good you want it to be by deciding how much upvote power and how many upvotes you plan on giving yourself. It sure beats a bank.
The real beauty of this investment is that Mr. James literally can feed "many mouths" by holding that much steempower. If he were to give me one upvote a day... for a full year... I would be $7300 richer.
That is all... I just wanted to share what I was playing with today on my calculator. I await this to spark a discussion which will certainly correct me on a few instances (which is good) and will bring us closer to what is actually the case (which is also good)... I just thought I would open up this can of worms because it seemed worthy of opening.
This is the post that I was watching today, let Trevon James know that holding onto his steempower IS in fact, a fairly good investment:
https://steemit.com/trevonjb/@trevonjb/silence-before-the-bitcoin-storm
Trevon James can be found here: https://steemit.com/@trevonjb
I am posting this not to pick on Mr. James... but to provide more insight to him and others who are wondering if their money is good as steempower... you be the judge on my math and all the corrections to my math found below.
Thank you!
New Followers get 0.001 SBD$ and an upvote for free!!
Just follow @steemvote and...
@allcapsonezero,
I was also thinking the same, maybe it would be good to invest in steem power and secure our future? Although I don't have $134,0000, but maybe, little by little. Or buy sp when the price of steem is low. I also don't know the inner specifics of this but I've met a lot of people here who invested in steem power. That kind of gives me an assurance.
We can't just depend on the whales to feed us, I'm thinking maybe we can be the whales ourselves and just support one another .
I give you 3 cents every chance I get... but it sure isn't $20. One day soon though!
I'm gonna post something like this now, I will mention this post. :)
I think he would have to keep all of his Steem Power, and not power down/cash out to stay at that level though. He would make everyone else Steem, but not himself.
Yes... this math assumes he stays at 134K, adds no steempower and takes none away.
I think that is what he was talking about too many mouths to feed, to just stay at the current level though?
I think what he was saying was he cannot upvote himself exclusively... he has too many other people to upvote (aka mouths to feed).
Ahh that makes sense as well.
Just seen this post now. but, there's something people are overlooking. $20 a day x 30 = $600/ month for DOING NOTHING (but a single click). I'm from Bucharest, Romania and $600 is the equivalent of rent for a 3 bedroom apartment (in a great area!) or a house just outside of town.
So how can that not be a good investment?? you can pull your money out anytime (unlike renting..you can't just sell your house in 5 minutes).
I thinks it's great for whoever has the money to invest, and minimal interest for managing a regular business.