How to "HODL" STEEM & Ride the Moon Bareback • The Safest Way to "HODL" Inflationary Tokens

in #steem6 years ago (edited)

So, you ask "When Moon, When Lambo?" but there are some things to consider first.

Let's start off assuming we are all aware of the "HODL" definition. Now, let's start by understanding that STEEM, the token not the platform we know as STEEMIT, is inflationary. The supply of STEEM increases over time at a set rate. It can be very confusing for new & experienced users to comprehend so I will include some references for those of you who wish to dive down the rabbit hole.

The entire point of writing this


To offer some clarity (hopefully, anyhow...) and some things to consider for everyone who holds STEEM - whether it is on an exchange, on Steemit, or both. There are more than a few people that I have spoken with who do not seem to understand how the system works. I hope to offer some thoughts that will initiate more discussion below in the comments. Now for the necessary evil: the disclaimer.

I will include my thoughts which are not to be confused with or mistaken for financial, legal, or professional investment advice of any kind. I am sharing this information for educational and entertainment purposes and I am not offering any investment advice here.

Always do your own due diligence before making investment decisions and consult with licensed professionals before risking your hard-earned money. Always invest at your own risk and also realize what those risks are.

STEEM is Inflationary


This means that the supply will increase over a set period, in the case of STEEM - that over the next 20 years. Now, here is where it gets interesting...

Most Investors Would Not Invest Without This Information Beforehand

So, here is where I am mindboggled: Everyone participating on Steemit, with an account balance above $0 IS invested! One would think that more people would see it this way, but oddly enough I do not believe most people do. If you are voting, commenting, posting on this platform, then you are an investor of STEEM & SBD. You are exchanging time for tokens when you participate on the platform.

Earning is based on user action.

The more time that we exchange, the more potential to earn we will have. Effort and skill are great factors in any success and is no different on Steemit. Persistent effort applied over time = investment in your future. If we are all investors, maybe we should all do our homework on how this platform works and what the future might hold.

the RAW inflation-data for STEEM. This data is often requested by investors and should be easily accessible. Big thanks to @abit for providing the following yearly supply-table so laymen can understand it! via post by @fyrstikken

  • please see link below table for reference.
year current supply inflation New supply
1   250,000,000.00  0.095   23,750,000.00
2   273,750,000.00  0.090   24,637,500.00
3   298,387,500.00  0.085   25,362,937.50
4   323,750,437.50  0.080   25,900,035.00
5   349,650,472.50  0.075   26,223,785.44
6   375,874,257.94  0.070   26,311,198.06
7   402,185,455.99  0.065   26,142,054.64
8   428,327,510.63  0.060   25,699,650.64
9   454,027,161.27  0.055   24,971,493.87
10  478,998,655.14  0.050   23,949,932.76
11  502,948,587.90  0.045   22,632,686.46
12  525,581,274.35  0.040   21,023,250.97
13  546,604,525.33  0.035   19,131,158.39
14  565,735,683.71  0.030   16,972,070.51
15  582,707,754.22  0.025   14,567,693.86
16  597,275,448.08  0.020   11,945,508.96
17  609,220,957.04  0.015   9,138,314.36
18  618,359,271.40  0.010   6,183,592.71
19  624,542,864.11  0.010   6,245,428.64
20  630,788,292.75  0.010   6,307,882.93

What is the inflation rate of STEEM? Here is the Supply-Table for the next 20 years!

May 25, 2018 / TIME OF WRITING:


STEEMIT 2 years, 2 mo. old


CURRENT SUPPLY: 268,855,181.25 STEEM
VIRTUAL SUPPLY: 273,693,560.381 STEEM

Here are a few things to remember when you are participating on Steemit:

• STEEM & STEEM POWER are not equal

STEEM POWER or SP is essentially STEEM that is "vested" in the platform and requires 13 weeks to power down once STEEM is converted into SP/STEEM POWER. SP is what determines your voting weight - it is based on the stake that you hold aka STEEM POWER. Powering up STEEM raises your voting weight and increases your ability to earn. The more power you use, the more you can earn. This is pretty important with inflationary tokens that have a supply that increases. STEEM is the liquid form of the two, just like SBD; both are easily exchanged and can be used immediately. Holding STEEM and SBD affords the holder the ability to speculate on price, however, that was not the original intent of the tokens. They are a means of exchange for a variety of services, products, attention, and other use cases like fundraising, etc.

• If you participate in this platform - it pays to pay attention!

Read, read, read the whitepaper. When you are done reading the WHITEPAPER, read it again. Next, read the Whitepaper.

https://steem.io/steem-whitepaper.pdf

If you have an account balance beyond $0, then you are invested. No matter if you put in your own hard-earned money OR you haven't spent a cent - you're still an investor. You are still spending time. If you plan to spend more time here on Steemit - you are investing - which leads me back to read the WHITEPAPER.

• DYNAMIC WINS THE RACE AND STATIC STAYS STAGNANT

Don't be stagnant. This includes complacency too! Don't get too comfortable and stuck in one groove for too long. Be dynamic. Be ready for a move in both directions. STEEM sitting in an exchange account is only allowing for speculation of price movement, but if you were to power up that STEEM into an account and become an active participant - you could earn much more. It also is nice to not worry about the price fluctuations so much because you can actively engage with the Steemit community while earning rewards for that activity. Just powering it up isn't much help, so you must engage. Be active and the more activity you generate by voting, leaving genuine comments, and writing the more potential to earn you will have.

Many people simply do not have time to be online all day, every day. So... There are plenty of other ways to put your SP to work for you while you are unable to be online. I am sure many of you are aware of bots that provide a variety of functions here on Steemit. It is a great community debate and one that I find to be a tired one. Two sides who argue over who should and should not invest in themselves and the community - yeah, that sort of silliness. Like there isn't enough STEEM to go around all of a sudden. Don't be fooled by "the pool is empty" crowd.

Know what you are holding, - more importantly WHY you hold it - AND... What your desired results are

Not knowing these key details can be a failure in the making. Always know as much about whatever it is that you invest in - preferably prior to investing. Know why you wish to invest and what you intend or reasonably anticipate in return, Have an exit strategy and expect the unexpected - always.

Steemit has no transaction fees for the internal exchange.

Free transactions on the Steemit blockchain. There's an internal market that allows the exchange of STEEM & SBD on Steemit. Use it because that is what it's there for and it's free - how much more incentive do you need?

Here's a bit more incentive:
SBD was intended to be pegged to $1 USD, however, has broken that peg and surpassed that exponentially over the past few months. I have been on Steemit for roughly 332 days and since I started here, the supply of SBD has inflated by double (at least) current SBD supply: 14,234,511.405 SBD

The Blowback
This is an unintended consequence of the broken dollar peg. Because SBD was intended to be exchanged for STEEM in the internal market and is not getting exchanged internally but rather external exchanges (sold on the market) - the supply of SBD is inflating quickly.

One solution
If more people exchange their SBD via the free internal market, that would in effect burn some of that supply. If this is incorrect, please 'adjust' my understanding below in the comments! I am not an oracle but learning just as many others are here. It is my understanding that when SBD is exchanged for STEEM via the internal market, that in turn burns the SBD token / reduces supply when that STEEM is powered up.

HELPFUL RESOURCES FOR THE AVERAGE STEEM HODLER

https://steem.io/steem-whitepaper.pdf - STEEM WHITEPAPER

What is the inflation rate of STEEM? Here is the Supply-Table for the next 20 years!

https://steemblockexplorer.com - STEEM BLOCK EXPLORER

Introduction to Steem – A Blockchain Designed to Tokenize the Content Web on Crytposlate.com

https://onchainfx.com/asset/steem - Cryptoasset Ranking & metrics

Friendly Reminders For Fellow HODLERS:

Mind the BTC


STEEM is a tradable pair of BTC, so it is wise to pay attention to the price action of both. They converge and diverge over time and that allows for opportunity. These prices vary from one exchange to the other, so that also allows for further arbitrage opporunities. Just remember I said "it pays to pay attention" - Be Safe, Not Stupid!


Don't 'Just HODL it' - Remember: making the most of your STEEM requires action

hodlittt.jpg


This guy is doing it all wrong...



Don't be that guy

Concluding Thoughts:

Before loading up on STEEM and heading to Twitter to ask WHEN MOON? remember what @grow-pro told ya

Always HODL with care! Please use two hands and your whole brain whenever you are making investments. Even posting on Reddit is an investment, whether that investment has a monetary return or not. Just use your head and the resources available and most times that is going to get you greater results.

Don't chase! Let the FOMO and FUD fly and keep yourself out of that flock. Let the birds chirp on the fence, but always know which side you stand on.

Do not allow rumors to determine your strategy - get the facts. Understanding how Steemit was intended to be used AND how it is really being used is also another very deep topic of discussion, maybe for another day.

It is important, nonetheless, to acknowledge there is some variation and deviation from the intended path and the current one. This inevitably​ alters the future projections if we are only considering 'on-paper' theory and ignoring reality.

I am not saying that buying and holding STEEM is a poor investment and I am simply offering some reason to why so many people invested in this platform seek ways to enhance their ROI (hint, hint - inactivity is not how they do it).

So, before we all charge the bid bot owners and burn them at the stake, consider the fact that without this alternative means of generating ROI for investors there might be far less opportunity for all of us who use the platform. Everyone wants more, that's a fact. It is all about how we go about getting it that determines our integrity.

23eyaw.jpg

STEEM ON, DREAM ON & MEME ON!!


HAPPY HODLING!!

THANKS-rocket-comment--grow-pro.gif

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Why do I have the impression you want to say more but you don't dare?
Inflation is bad but if crypto prices head north again, or if more users come to Steemit, that would have a greater effect on steem price. Or when too much whales are powering down.

We must have just crossed paths, @deathcross. I've always been one to say what I mean and I can assure you I have nothing to say that I haven't already said - until I learn more, of course.

Inflation that is set, as it is with STEEM, is not necessarily bad. The intent is to grow the Steemit platform and in turn the growth increases demand and therefor the supply increases to afford user base growth (in theory). No different than buying gen 1 tech, reality usually differs a bit from paper. Steemit is still a puppy chasing its tail, so it is no wonder why money comes and goes here.

Whales selling their STEEM has little affect on price as there are many exchanges to sell on and none of those prices are tethered - arbitrage opportunities are great when the price diverges and converges between these exchanges. Just because a whale powers down, moves STEEM to external exchange doesn't mean that will negatively impact price. One exchange to the next - price is different and these exchanges only reflect some of the market. I have even leased STEEM via third party, so just because the STEEM is held outside of Steemit DOES NOT mean it is gone, sold, or not being used. I am currently using some SP for my @grow-bot that if I had not leased it might be sitting in a wallet doing nothing.

We all want to see the STEEM price rise and Steemit become what we believe it can be. However, many of us have unrealistic expectations upon arrival and far too many aren't willing to do what it takes to push this to the next level -- developers can work their ass off to make dApps on this blockchain but if there are no users to utilize it then it's toast. Steemit dev team needs to stick to their word and deliver BUT users of Steemit must also be prepared to support these changes - obviously there can be stronger communication between that team and us (users).

The rewards pool is not empty and won't be for quite a while. Steemit is still creeping along Beta and will grow as the engagement and activity grows /organically. We have over 1 million users registered and ~60k active users - easy to see a need for organic growth. Until this platform is fun for people to engage & use, it'll remain this way. That's up to all of us, not just a front-end dev team.

Thanks for dropping by and sharing your thoughts - hopefully this wall of text better elaborates my position. 🍻😉

холд, холд, холд...

Wow, nice post. It is really helpful for newer users like me. Thank you so much!

Great article. Nice analysis. Thanks.

Thank you for you’re insight. I found it very helpful. Make sure to read those White Papers, people. You can usually tell a lot from a White Paper.

Really nice article:)

Well done @grow-pro! You successfully guessed the match result.

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😎🎉🍾
If I can do it, ANYONE can!! Hope to see more friends jump into the fun. The badges really gamify the milestones on Steemit and this is a wonderful use case example of the fun that can be generated on this blockchain. Thanks!

Congratulations! This post has been upvoted from the communal account, @minnowsupport, by grow-pro from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.

If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.

Coins mentioned in post:

CoinPrice (USD)📈 24h📉 7d
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STEEMSteem1.684$-0.84%-28.31%
TIMEChronobank18.317$1.22%-21.43%

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