My steem power down payment is "infinite"
My steem power is currently growing at a rate of 150 steem per day, when I power down now my 1% payment of steem would be 150 steem per week. As my steem power grows daily from blogging and curating, in addition to the 150 per day just for having steem power, then my weekly payments are infinite if I keep blogging every day.
To clarify the statement about my steep power payment being "infinite"
Like Einstein said, the power of compound interest is the basically the strongest force in the universe!
The potential of steem power is pretty crazy, and I'm sure the opportunity will only grow from here.
Timing is very important. Powering down Steem if it negatively effects the market cap might not be so good so it really depends on whether you do it while Steem is in a growth phase. Right now Steem looks to be growing and once the price hits a critical threshold it makes sense to power down.
At 150 Steem per day if each Steem is $1 is $150 a day. That is full time job territory but not infinite. More details from Dan has to be explained as to whether it's locked at 1% per week with maximum 2 years, or if it gets somehow dumped at the end of the 2 years? Also there is the strange reverse split so you only have a certain amount of years before that event happens. What happens if you don't Power Down until that time?
Sounds very speculative, my flow is to dive into the power down experience and see what happens, and it wont affect the market cap, my share is dust compared to many others. Ned and Dan are both powering down right now and it has no effect on the market. My first payment would be 150, but my second power down payment should be over 200 steem, and that's not considering me earning steem power from a blog post that get's a big payment.
I think maybe the key is Steem Dollars. If you power down but only trade your Steem for Steem Dollars then the Steem can be recycled into Steem Power. The economics are complicated though and too much free floating Steem could result in a lowering market cap which could reduce payouts, so we have to wait and see which way the market goes.
It's not a good idea to have everything tied up in steem, as it only started a few months ago, it still has to prove itself as being a good store of value over the next 2 or more years
Can you tell if other accounts are powering down
When everything is data there is opportunity in everything!!
Just takes a little nerve to make a leap into the unknown!!
This is insane and I can't take the classic pyramid scheme out of my mind. This type of growth is unsustainable unless you have a mass of new users adding money to the base everyday, upvoting and posting, so the top heroes get paid this much. The probable end of this will be a crash where Steem value will be close to zero, big names are long gone and the newbies will loose their investment fighting for .00001 steem on every make up post.
Please prove me wrong. I want to believe in this platform.
D
Why is it when it's crypto people think it has to be a pyramid scheme because it's making little guys rich but if it's Facebook it's considered a legitimate business even though a lot fewer people make money from Facebook? It's the same, it's social media. Social media like Reddit is worth billions and there is plenty of room for something like Steem to grow well into the tens of billions at least.
I believe we will have something like 400 million Steem supply this year, so if the market cap reaches 1 billion what could the price of Steem be? Anyone can become a top hero. Craig and I were not top heroes just a few weeks ago but now we get called top heroes?
In a month or two the next generation of people will have earned Steem Power and eventually will be called top heroes. There is plenty of growth for everyone.
YES, this is very true
Growth for people on the top, or willing to put lot of money as a 2 year, high risk, investment. Distribution still looks like a pyramid. The fact is that this thing is on such an early stage that it can definitely make users rich from nothing. If it is going to be like Facebook, time will tell.
Don't get me wrong, I'm fascinated by Steemit and I believe it has amazing potential, but there are a lot of adjustments to be done so it doesn't become only about money and makeup vlogs.
D
That is not what happened though. I didn't put money into Steemit. I put content into Steemit, and as a result Steem Power and Steem Dollars came out of the machine. I guess you could do the same too.
If you decide not to create content then the people who really need the money will create the content instead and they'll get the Steem Power. Makeup Vlogs are cool because it shows anyone can make money not just computer geeks.
my next video about steem power is uploading right now and I say the same things you just said in your comment
How do you upload a video? Sorry I'm a total newb to Steemit.com!
The pyramid scheme failure mode is that everyone tries to redeem their piles of SBD made from their make-up vlogs and finds that the peg system that it supposed to actually make them worth a dollar each can't keep up.
It's great that your comment appears to have made (as of this writing) $15.38, but I would recommend not to count your Steem-backed dollars before they, as it were, hatch.
@interfect I guess it's always to be seen as a pyramid if it's not built by the right people, using a centralized technology, with the permission of Wall Street, and authorization from power brokers in Silicon Valley, etc. But the truth is that Steemit is something different from that and while it is different it doesn't mean it's inherently any more of a pyramid scheme than the US dollar itself, or any other massive company which has a top down pyramid style hierarchical structure, where very few people can invest in it at IPO, and few people can work for it.
Take Facebook for example which we it can't even find women and minorities to hire because of "lack of talent". Why wouldn't these minorities and women see Facebook as an even bigger pyramid scheme than Steemit? It doesn't let them invest in it, or work for it, or interact with it in any way except the most exploitative way unless they can afford to buy shares.
As far as Steem Dollars, the technology is based on Bitshares which I'm very familiar with. It can hold a peg if it can attract enough speculators. This isn't guaranteed of course because it's still very early but the exchange has no fees and has liquidity rewards so as long as there is demand for Steem and Steem are worth money it is in my opinion very likely the peg if not perfect will still be near the price of $1.
Agreed. GROWTH FOR EVERYONE. Steem adoption has NOT even begun by mainstream public. So much potential, so much financial freedom. ..
Facebook depends on ad revenues, and monetizing user data, so it's hard for a lot of us to see "where the money comes from." I know I need to do more research, just joined a couple days ago, but it does look like money from nowhere at first look.
Facebook steals your attention and then sells your eyeballs. Actually they use terms of service agreements to legally capture your attention to sell to advertisers. Your attention is attracted to Facebook by the containt which is the bait in the hamster capitalist trap but it's still hamster capitalism.
On Steemit you have a voluntary market without coercion, without contracts, where you don't need ads to monetize people. Other people attach a value to the content they like and through collaborative filtering they vote up what they prefer. This collaborative filtering could be seen as valuable because over time it's going to get better and better until a swarm AI knows what everyone likes or wants.
Steemit has the potential to replace Facebook, Amazon, Ebay, etc. Steemit is not competing with Bitcoin or Ethereum nor is it competing for the same people. I understand why it would seem the money comes from no where but the money comes from the wealth of networks of human beings. People have value to other people which is why Steemit will generate value for as more people join it.
Steemit is better because you're selling your content
Oh My how awesome was this rebuttal..I was thinking to myself other day if everyone keep being patient and keep active with good quality post over time we all will be whales helping little fish grow:)!
I think you are right, but this is not the kind of thing I would make a video about, this scenario is why it's smart for me to start powering down now into bitcoin, as it could be years before steem runs out of ponzi power like you describe... there are millions of who will come to steemit and invest time and money, while I get paid.
I agree with you. There is a huge opportunity here.
I'm gonna leave this right here
https://steemit.com/funny/@sunshinecrypto/share-to-join-spread-the-steemy-word
Anyone know how to get on slack?
seems down
exactly my thoughts
We have roughly the same amount of Steem Power and similar experiences blogging. I'm going to stick with Steem Power and not Power Down because of compound interest.
But I do think it makes sense to use blogging money to diversify. There is a risk that somehow Steem could fail even though it doesn't look like it with the current growth rate. Between Bitcoin, Ethereum, Steem, and Tauchain, I think one or all of them will be a huge success.
If after a few payments of powering down I realize that my steem power is being reduced rather than continue to grow, then I might stop powerring down, it's hard to know what will happen until I actually do it, experience is the only true teacher, and you can benefit from knowing what my experience is and hold your steem power while I be the ginny pig for this powering down expereiment :)
So you can stop powering down once started? Didn't know that. Still, if you expect the price of Steem to continuously go down or you see the price going down as fast as you are receiving payments then you'll want to power back up again?
I guess you can find out, someone has to try it and report back.
I believe the Risk is actually extremely high that Steem will crash at some point. Just like any other pyramid type of investment, the top will cash out and masses will loose their money. This is not a safe investment by any means, so power down as soon as you have enough SP, like Craig, and enjoy the ride while the Steem price keeps rising.
Is there any whitepaper to describe the SP increase equation in the numbers ?
If market supply and demand curves do not match then it will affect btc price.
Demand is speculative only. I would imagine that steem token give some rights to blog.
But I think that the value of token is the time of people which spent writing/reading content.
Now it is wild wild west or ponzi scheme. Problem is that gives no clear view how to montezie this time. I think that true value will be added when people start to put marketing content stealthily in funny way like sponsored advertorial. It could be incentive for companies to have most views.
The future is rather bright if they do not screw the distribution of coins too much.
The value of content is subjective. The value of Steem is based on the value of the people behind it, the Steem community. Stealth marketing is already happening but you're absolutely right.
If you look at the makeup Vlog it could be stealth marketing right there and people would never know it. I mean isn't it great for the companies who sell makeup? And nothing stops these companies or any other companies from giving sponsorship rewards in their own tokens.
Why does Facebook, Twitter or Instagram have value? Their market caps are insanely high.
They have investments in all kinds of startups and revenue is coming in. You can't directly compare them w STEEMIT
Sure you can. It's the same market as Steem only Steem is better for the users. Facebook is big now but started out just like Steem.
https://www.crunchbase.com/organization/facebook#/entity
DAYMN! Keep doing good things Craig!
I'm guessing there will be a water-slide business for sale somewhere in Florida soon... ;-)
I've been watching your videos for a while, you certainly have a unique and interesting way of looking at all this. I really like your inthusiam. Crypto can be crazy sometimes, I know you used to follow ethereum for a while, do you still think it has a future?
right now I dont think ethereum has a future, if they make it pass POS, then I could change my mind, although sharding is another beast, kind of like saying I can teleport one day
Craig-grant stay coming with the great video content :) Thanks a lot
Really like your videos, keep it up man, you are one of my most favorite youtubers
damn good post, craig. I have a draft somewhere here " a life compounded " in which I talk about this experiment.
deleting now...
So, what will happen to the Steam exchange rate as people start powering down?
Powering down gives you a stream of passive income. If you have enough Steem Power to have a comfortable life powered down without worrying about running out of Steem Power then why not? But it depends on how much 1% of your Steem Power a week represents in fiat.
If you can get over $1000 a week from powering down and live like that for 2 years? It's going to be very tempting to power down for most people.
I am powering down into bitcoin, it's not a payment for me to spend and live off. I already have money to live off for the rest of my life. Holding bitcoin may not seem as profitable as holding steem power right now, but in time bitcoin could be worth $10,000 per bitcoin, and I could have hundreds of bitcoin earned from steem power.
I see your point and have thought the same about Bitcoin in the past. Some of the decisions of the Bitcoin community recently have given me pause and I'm now not certain Bitcoin can go mainstream for technical reasons. I don't think it can scale and I don't know if they can overcome the damage to their brand from Silk Road, MtGox, and the idea that Bitcoin is for hackers (just look at Mr. Robot).
Diversification is good though.
I don't want bitcoin to go mainstream, that would ruin it. Bitcoin can stay where it is now and be a store of value for the 0.01%, and still be worth $10,000 per bitcoin or more at some point in time, sooner than later in my mind
@craig-grant I always thought Bitcoin had to go mainstream to reach $10,000 but perhaps you're right. In theory even if Bitcoin only remains a sort of fascination for top nerds and crypto-geeks in Silicon Valley it is very possible that some of these people will have enough money to push up the price.
But in my opinion Steemit or something like it which reaches the mainstream has much more potential. If you get 20 million people on something like Steemit that could be hundreds of billions in market cap and even if there is a max of 2 billion Steem or something similar, the amount of Steem inflation is not unlimited like some people claim and this means long term even a moderately successful Steem could be in the $100+ range per Steem.
And the scary thing is this thing grows viral. They have code ready which hasn't been activated yet that allows for a referral program where you can a kind of refer a friend reward program. It's the rate of growth that matters for people who are looking at profit from speculating and I think Steem has the potential for the fastest rate of growth according to some research I've looked into on viral spread.
As Steemit grows, it will generate memes and unique content. As the community gets bigger it will become easier to take things viral. As this happens it also takes Steemit viral along with any content which goes viral. Unlike Bitcoin where people are asked to "buy Bitcoin", it's a low barrier to entry and open to anyone who can blog.
"Community-based features perform the best among the
three classes. Predicting the number of meme adopters is a
more difficult task, but our network-based approach outperforms
other baseline models, especially in predicting memes with few adopters"
References
https://www.aaai.org/ocs/index.php/ICWSM/ICWSM14/paper/viewFile/8081/8154
nothing
Love the update. Keep us posted how this goes, as I'm sure you won't be the only one doing it 😉