Don't be afraid of low Steem Prices . Look at the Chart! Upgrade Steempower makes sense when Steemprice is dropping.
Many People will Join Steemit -
Low steem prices are useful for a better powerdistribution of this network and are a great opportunity to increase your stake !
Just take a look at the latest chart of the Steem Price
https://coinmarketcap.com/currencies/steem/#charts
Normally it isnt fun to look at a chart like this.
(some people would even say this looks like a typical pump and dump!)
If you had invested in the last month you are maybe worried about it.
If you did before, it was more fun to look at the chart a few weeks ago !
But this isnt a normal Chart.
Because Steem isnt a normal asset or cryptocurrency !
It is Magic =) !
Actually this cryptocurrency isn't just simply based on Miners and investors it is more a sharing Society.
The Steemians !
So it really does matter what the people in this society are doing to the value of the Steem token.
And the Individuals in this community are doing very very well so far.
If we look at us as Miners of Content, and we are miners in way , our hashrate and our mining quality is simply increasing since The last 3 month !
This "Hashrate" or lets call it "Power of creating Content" is growing more and more every day.
Before the first pay out in the first week of july there were only about 2000 accounts listed.
So the growth of the membership is even bigger than the price rise was.
Because the Steemit community as a whole made very smart steps it created huge motivations to join steemit.
And as we can see on
https://steemd.com/distribution?fishy=yes the participation of active users in % is huge !
In longer term nearly 100% !
So this growth wasnt stopping or falling like the price it isnt even slowing down !
Any individual who joined steemit will have its own experience but as far as this highly participation will go on it is a really bullish sign for Steemit and its tokens.
In this scenario it really matters because the Steemtoken is actually build on a kind of "proof of content" !
So lets take a look at the chart of the last 3 month we can see huge movements with a huge volatility.
~1600% price increase within about a month and a quickly following price correction.
There was formed a massive Bearmarket the last few weeks after the price reached more than 4$/steem (until 1.49$ atm)
And it goes on.
last 7 days chart.
Worried about that ?
It is normal that you want to power down to cash out when the price of steem is very high based on your personal opinion.
BUT
as the value of the Steem Token is falling, the ratio of SBD / Steem is rising.
So you can simply get more Steem for your earned SBD and with it more Steempower.
The ratio of Steem to Steem Power is 1:1
So on the opposite of powering down on high prices it would be smart to think about powering up when the prices of Steem are very low
( of course just in case you think and believe in longer terms on steemit)
Example
If you got 2000$ for upvotes for all of your posts and comments in the last month combined.
You would have received Steempower worth of 1000$ and 1000 SBD (steem backed dollars)
A
So when the price was hitting 4$ and you would had sold your Tokens you would get :
1000SBD / 4
=250Steem.
B
At the current price of ~1.50$ this would be
1000SBD / 1.50
=666.666 Steem
The difference between A (4$)and B(1.5$) is
416.666 Steem !
So if you ever thought about powering up some of your earned SBD it is important to realise this.
In these Example you sold your SBD
and so you bought Steem.
But if you did this when the price was at 4$ you would have 416.666Steem(!) less than the one who bought at 1.50$
(rembering this old strategy of buying low and selling high?)
Buy steem when they are at a low price if you want to Power up Your Steem Power !
The Price will fall until it is low enough for the right individuals to power up and increase their Steemit experience!
And of course nobody really knows what the bottom is.
just buy the dip ;) !
I guess the most individuals had mostly great experience the last 3 month no matter what the price did.
The really beautiful thing is, if you just enjoy your experience on steemit you simply dont have to care about what the market do. Because you get half of your rewards in SBD which actually is a stable currency backed by the price of US Dollar.
So if you keep your money in SBD you dont have to care about the volatility of Steem.
But if you dont really need the Money out of your earned SBD on this platform you should think about using it to power up while the prices are getting cheaper and cheaper.
In this case the lower the price the better the ratio will be.
So when you remember this huge growing of the membership right now and if you can imagine a scenario where steemit will exist in a few month what do you think will do this to the market ?!
.....
Powering down is a tool to drop the price !
Powering up is a tool to push the price !
....
A lot of People will join Steemit
....
Once the price dropped enough there will be a wave of growing fishes, dolphins, orcas and maybe a new generation of baby whales.
Enjoy your experience. and dont be afraid of low steem prices they are a great opportunity to increase your stake and help for a better powerdistribution for this network.
The opportunities of powering up and powering down will affect the market ferquently in the future just be aware of it !
I tripled my steem power today when I took advantage of the lower price for steem.
If it drops further, I will once again be a buyer.
Steem on,
Mike
do this.
do it as as long it is cheap.
I will be powering up as the price approaches $1
Looks like a good mark for you. and i guess we could see this happen.
I am not sure that this will be the bottom.
The funny thing is that because of the Inflation Rate at some point your are speculating with an amount of time.
you have around 360 steempower. so you earn around 3.6 steem at this day for stakeholding.
3.6 steem x 1.45 $ = 5.22$
So you would pay 5.22 right now for one day of your actual stakeholding.
If the price would be 1$ you would pay 3.6$ for this day.
But every "Day" you want to buy gets more expensive (except the price is falling. ;)
The chart is a crying buy. Can't you see that? Rock bottom it is at!
i can see it.
But it already dropped more than i expected
You can also choose to hold onto your Steem Dollars and wait until the price of Steem is real cheap. There is a floor but I don't think we will reach it until Steem is under $1 because that is where it was when the whales got involved. They might not stop powering down if the profit is so high that they are making way more than they originally put in.
Also there are political reasons to power down.
Of course.
As far as knowone really knows what the floor acutally is it is hard to estimate when it is worth to power up.
But as smaller your stake is the earlier it is worth to do so. because its more cheap to double or triple your stake.
If you already have a big stake you probably would wait for cheaper prices.
for know it isnt really cheap enough to power up for whales, orcas or even dolphins because of the high amount of inflation these individuals are earning.
But for a lot of small fishes it begins at these prices right know that is worth to think about increasing the stake.
this will be the first wave of SteemPowerdistribution from the biggest to the smallest.
nice post
I hear many steem whales have a big interest in BitCoin, and do not want steem to do well. They bought into steem early (~.25c/steem), and are powering down and sellling off as much as they can to move the steem market down. I do not think they will win at the end, because many steemit users do not even care where the money comes from they just worry about powering up or powering down. I am glad you wrote this article to make people aware of todays market.
I can't see a benefit to selling Steem Dollars or Steem Power for Bitcoin. For what? You get interest on Steem Dollars and your Steem Dollars are harder to hack so safer to hold on Steemit. What about Steem Power? Steem Power might even be profitable to hold even if its at $1 or lower if you consider the amount you get a day.
If anybody would Power Down at this moment this would be 1% of Steem entering the market per week.
Of course the orderbooks are very thin right now but we will see how many new members will join steemit every week.
And how many of them will invest something when they figure out that stakeholding isnt a bad thing when this will be big thing
great idea
i did try to power up yesterday, just testing the waters. i might put in some more if it brings good results
smart move.
dont buy the total amount of steem power you want to have at one time.
Yup it might go down still.
Isn't it more important to watch the total market cap rather than the price of STEEM itself? The amount of steem will inflate 100% per year but 90% of it goes to holders of SP. This means the price of STEEM tokens will constantly be tanking, but your total holdings will only be diluted 10% per year as long as you have all your funds in SP. However what matters is that the total market cap of STEEM grows by at least 10% a year to break even if you are investing.
this would be matter if you Hold Steem.
i was talking about buying steem to power up.
upvoted
Nice post. I'm still trying to wrap my head around the relationship between steem, SP and SBD.