I just calculated the interest rate that you are receiveing for holding STEEM power

Have you been wondering what the true interest rate that you are receiving for your STEEM power is. Well, I have been too, so I did the math. I wrote down my STEEM power value then set a one hour timer on my phone so that I would measure exactly one hour. I then immediately refreshed the wallet page to get my STEEM power after one hour. Here is the math so you can confirm it for yourself:

STEEM Power initially 3225.842
STEEM Power after exactly one hour 3225.849

         So, I earned            0.007         in exactly one hour

Divide this number (0.007) by the initial amount of STEEM which was earning interest (3225.842). This gives you the percentage interest earned in one hour which was:

        0.007/3222.842 = 0.0000021% interest per hour

With this number you can easily calculate:

Interest per day

0.0000021% X 24 hours in a day = .0000504% interest per day

Interest per week

0.0000021% X 24 hours in a day X 7 days in a week =0.0003528% interest per week

Inerest per year

0.0000021% X 24 hours in a day X 365 days in a year = 0.018396% interest per year

Now, since interest is expressed in whole numbers instead of the hundredths place that it actually represents, you can see that:

The annual interest rate that you are earning from your STEEM power is 1.8396%

Not much to write home about and certainly doesn't keep up with the inflation rate we are all being exposed to with our Federal Reserve Dollars.

A factual assessment would be that don't hold your money in STEEM power expecting an impressive growth rate simply due to interest. This must be augmented by your activity in the site and the addition of the reward earned through curation and posts to achieve a respectable rate of return via internal rate of return alone. This, of course, is independent and in addition to the appreciation in the value of the STEEM itself in the marketplace that can be sold in the exchanges.

To determine your total rate of return on your investment in STEEM, you must add three factors. The interest on the steem power which we calculated above (1.8396%) , the percentage gained annually through your curation and posting activity, and finally, the percentage gained by the STEEM coin in the marketplace. You add all three of these positive growth factors together and you arrive at your total gain per year of your investment in STEEM.

I hope this helps you in your investment decision making with regard to STEEM. Mostly it is a site where we can exchange thoughts and ideas and hoplefully earn a little extra money along the way. Some very fortunate souls, will likely earn a lot of extra money along the way.

I will be discussing various financial factiods and areas of investment advice regularly. Please follow me if you would like to grow your investment wisdom.