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RE: Sorting out the values of Steem
THANK-YOU for that very detailed explanation! I noticed the change to earnings shortly AFTER writing this article. I have not seen anything about WHY the change was made nor how the calculations were done. It appears like it has now become even more difficult for newbies to grow their accounts from nothing because more of the advantage from getting paid in SBD has been removed. All the more reason for early adopters who got the advantage to support the newcomers and keep them from being discouraged. I would love to see Steem become a worldwide currency and for that to happen, we need universal adoption.
Many thanks for the up-dated information regarding earnings!
You are welcome! 🙂
I didn't find any official explanation "why" and "how" this change happen either.
It's also a bit confusing and definitively unclear, as you may see from the above formula, the amount or percentage deducted from SBD reward and paid in STEEM may vary quite significantly (at least from my articles' examples) what means we never know what we would receive exactly at the end.
Regarding possible bigger difficulty for newbies, I would say somewhat yes but I don't think it should influence it that much.
In comparison to the first months of the platform when seeing 10 cents ($0.10) under your post would be a cause for celebration party (as the reward calculation and algorithm were entirely different), this seems like nothing to me. - lol - Please, don't get me wrong! 🙂
At 10 cents per Steem, seeing a reward of 10 cents then would be like seeing $2 now. Compound that with the fact that the steem you earned back then is now worth 20 times as much and you may consider things a little differently. (2X20=40) You bet I would celebrate if I earned $40 per post! I've been here almost a full year now and am seeing roughly $1 per post. A real newbie will see just cents for each. This is why I am dedicated to assisting those who are just starting out on this platform even though I have not even reached 750 SP in a year.
You are correct in saying that the new changes will not affect payments that much, but from a perspective of someone starving, taking 3 spoonfuls of rice out of their daily cup of rice means a lot more than taking a plate of food from a buffet table.
hahaha 😂 - I'm sorry, but you really made me laugh with your calculation and especially with the result. You apparently got hooked and excited with the idea of possible $40 per post that you get lost. - lol -
The thing is that Steem worth today about 20x more as you said or to be precise (according to the current rate of $1.70 per 1 Steem) 17x more than back than.
So, and in case (what has never been the case) that even all the earnings displayed under our post in total amount would end up in our Steem wallet at 1:1 ratio, it would be 0.10 Steem
In other words, the amount of 0.10 Steem in our Wallets, unfortunately, didn't become $40 neither Steem nor USD!
The only more significant change we might see although still not $40 per post, is that the same upvotes that we received back then which total amount worth was displayed under our posts as $0.10 (because of that 20x increase of Steem value) today would be displayed as $2.00 (or $1.70) because 0.10 x 20 = 2
To be able to see it as $40 Steem would need to reach first the amount of $40 per 1 Steem what would make the value of our upvotes 400x bigger than it was back then. 😉
And I think we will have to wait for that additional 2-3 years. 🙂
Sorry, I was in a big hurry this morning and made a lot of really big generalizations and assumptions. Let me try this again:
A 10 cent post back then, split 50/50 would give 0.05 SBD and 5 cents worth of Steem. At a price of 10 cents per steem, that would be half a steem or 0.5 Steem. Now you sell the SBD and get another half Steem. Together you earned 1 whole Steem for a 10-cent post. Now you wait until the Steem is worth $2 each as it is today (very roughly). So that 10-cent post is now worth $2 rather than the original 10 cents you saw when you claimed it, a 20-fold increase. Yes, you are correct, my original math was laughable!
Now a 10 cent post will yield 0.05 SBD and 0.025 Steem. Convert the 0.05 SBD to Steem and get another 0.025 Steem because both SBD and Steem are near the same value. Together you earned 0.05 Steem or 10 cents. You need to do that 20 times to earn a single Steem.
Oh, don't apologize, please!
I made so many similar excited wrong calculations myself to realize after I didn't take in consideration half of influencing aspects or I did but in a wrong way. The only luck was, I didn't publish them! 😂
Never the less, I would love so much that your math is correct, as we would already be far ahead on our Steemit trip! 🙂
But although we are not there yet, I believe we would get there hopefully sooner than later. However, when that day comes, recalling on this conversation it would be a great fun! 🙂
I look at it this way:
Everyone that is already here is an early adopter and will eventually benefit from the rising value of Steem.
Those who got here first will generally have the greatest benefit because they had the most time to collect and had less competition for dividing the reward pool. The later one enters the Steem universe, the less their chance of making a big profit. Steem needs more users in order to become more valuable, but that also dilutes the reward pool, so earning rewards will only get more and more difficult.
The past is always full of memories; some good and some not so good, but we can always laugh at what once was because it is in the past and is no longer the present.
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