ELI5: Am I Really Making Money Right Now?
This seems too good to be true. Can you wonderful people break this down for me?
I'm seeing some folks with posts that exceed $14,000. Are they really making that much? Steem.io says:
STEEM is tabulating best posts and votes from launch through July 4th to do its first and largest payout of Steem and Steem Dollars. Rewards totalling 10% of the value of Steem will be allocated to the top content and curators.
So is that dollar amount just a place holder until July 4th? Thanks in advance!
STEEM has more backing it than USD. ;)
The value displayed is based upon the market cap of Steem and the estimated amount of Steem that will be awarded to the account in the form of Steem Power and Steem Dollars.
http://coinmarketcap.com/
Steem is currently trading at around $0.28 per STEEM on relatively low volume ($1800). So whether or not you can realize the value depends upon the future success of the platform and liquidity.
Half of your rewards are paid in Steem Dollars which means the amount of STEEM you get over time will automatically adjust to be worth about $1.00.
The dollar amount is a calculation of what would be paid if the payouts went out today. Between now and then(July 4th) the amount could increase or decrease depending on the number of votes, the price of steem or the total number of posts that will split the 10%.
If I have $1000 post right now and suddenly STEEMs market-cap goes from $10M to $20M.... will my same post without new votes jump to $2000 value?
That is correct.
What's the algorithm for calculating the value of a post? What causes a post to go to the moon and others to chill like cucumbers?
Also, you get at least half the value written under your post, and the rest goes to those who commented/curated. Right?