When Steem hits rock bottom, start Steeming!
The all time low, so far, for the price of Steem was on july the third 2016. Yes, one day before the first official payout round it dropped to 0.00028003 BTC. Can you believe it? Also in july, on the 20th it wend sky high at about 0.00682128 BTC.
When I signed up on 26th of may 2016 the price of 1 Steem was 0.00168807 BTC. And currently it is at about 0.00032 BTC, still above rock bottom. The descend slows down more and more, the slope is getting more flat. It might now wobble into stability for a few weeks.
Now is the time to SteemIt
There is an advantage when the price of Steem drops low. Traders buy low, because they want to sell high. But what if you are here to get your Steem on? To post, to curate and build up big time Steem Power? Well, then right now it is best to keep on Steeming.
The lower the price of Steem, the more will fit in one US Dollar. That is what the potential payout is showing you behind the $-sign. When almost 5 Steem fit into 1 symbolic US$, then that will give a nice payout. If you want to see your Steem Power grow for instance.
So, low Steem price, high Steem Power gain. The same for curating rewards. And when you are building your Steem Power, it will grow even more by itself. Because the more SP you have, the more you get from the investment reward pool. Again, there is a win from another gain.
While others drop off, you pick it up
When times get rough, the smart keep steeming. It is a simple principle. The post and curation pool has an amount of Steem that is finite, for every round. That is about the same amount every time.
This means that for those who keep going, there is less competition. In effect this could lead to higher payouts per round. Or more posts getting a nice payout. And also curation will get a bigger share of the pie.
And when the price of Steem is low, this means more to power up.
And then when the price picks up again
Somewhere at the weekend of @steemfest (11-13 november 2016, Amsterdam), or just after, the price of Steem could pick up again. At some point the price of Steem will get interesting again for speculations. And demand for Steem will make the price go up again.
But, as I wrote before, it is something of looking into a crystal ball, no guarantee. Still, Steem growing at low price is quite nice. It is almost as buying low for trading. And it is cheap to power up. Having more Steem Power does have it's advantages.
This race gets won by those who keep on going. So Steem on, sisters and brothers! Keep the fire burning.
pixlrd photo cc-by-sa @oaldamster
This is a 50-50 payout post
I think one problem is that is vests cost more everyday. So it becomes harder everyday to earn the same amount of vests. It costs more now for the same amount of vests than it did when Steem was at these current prices back in June. That's a problem.
Could you tell more about the price of vest creating a challenge?
There are differences compaired to last june, absolutely. This is about how the current situation has some upsites to it.
I mean that it costs more to get 1 million vest everyday.
The cost goes up per vest, everyday.
Yet, the value of Steem is going down everyday.
Therefore it becomes harder to earn 1 million vests (or whatever amount). Even if Steem stays the same price, vests become more expensive everyday.
And with a declining price of Steem earning a million vests, gets more difficult everyday.
If I am wrong on this then let me know. But this is where my thinking has been recently about Steem.
Thanks, I will need to have a look into this.
I will get back on this.
Together with the 'reset' subject this could be worth a post.
The price of Steem and VEST are related. The VEST price will change then accordingly to the market price of Steem, to keep showing the right amount of Steem Power, because that is what it represents.
If the price of Steem goes down and the VEST price would not compensate for this, then the amount of Steem Power would drop visibly. And the only thing that does drop visibly is the virtual value in US$.
But, every minute about 720 new Steem gets created that gets distributed under Steem Power owners. This is still considered Steem related in value. So 1 Steem Power growth per hour has still one Steem to back it up in value.
This value has to be kept at the same level of Steem Power. Even when the value of Steem is dropping further and new Steem Power gets added. So, the value per VEST will change, rise even in the price of Steem stays the same, because more Steem gets created, that get added as Steem Power. That needs to be revalued in VEST.
And this is an ongoing proces, because the network keeps creating Steem that becomes Steem Power, that is represented as VEST at a blockchain level. And this VEST amount has to be valued in such a way that it shows the right amount of Steem Power in an account's wallet.
This would also mean that the value of 1 VEST could only drop clearly if the price of Steem would rise enough to compensate for the amount of Steem created every minute.
In conclussion, Steem Power will still be worth the same amount of Steem in a Power Down, as Steem will be in a Power Up. Even though behind the scenes it represents a higher value for VEST, that is still the same amount. But with a different ratio, to get the right value for Steem(Power) all the time.
VESTs can not be directly traded, they could be seen as only excisting on a blockchain level. And the value, or multiplier that is used for it, is to keep the right amount of Steem Power represented. That needs to be able to be Powered down to Steem at some time.
So, as far as I see it, it's 'value' serves mainly as a multiplier to keep the 1:1 balance in value between Steem and Steem Power.
If an account holds 104.000 SP and Powers Down it still will get a 1000 Steem per week, for 2 years. No matter what the VEST multiplier is set at.
The challenge then would not be the VEST multiplier, but the continues creation of about 800 new Steem per minute. At least that is how I come to understand it.
I have no intention of quitting because I believe that Steemit has built in sustainability. Like anything in life, there are going to be growing pains, but you push through it to become bigger and stronger than before!
The secret of getting ahead is mainly moving on.
And there are many things in the way Steem is set up that makes it sustainable. And more changes will come to make it even more fun.
Happy Steeming!
Thanks for the words of enthusiam. You are a Steem coach! : )
You're welcome. :-)
Steem on!
Yup this is sort of what I am thinking we must keep steeming ahead!
Steem on! :-)
excellent his view @oaldamster a tempting idea congratulations, thanks for sharing
Thanks @jlufer, you are welcome.
Hey ho! :) Up-voted and re-steemed.
Let's go!
Thanks! :-)
To infinity and beyond!
Yeah! Let's do this!
@oaldamster, when I read this at wee hour at dawn, I resteemed and normally I'd resteem before posting my article so my article would be on top but this time I couldn't wait till I post another article because this is the freaking best attitude one could have right now.
One wise man once said - IN EVERYTHING IS OPPORTUNITY and you're right
with
So fellow Steemians, write your hearts out !
Thank you Ivy. full Steem ahead! :-) 👍
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YES! Thanks for the motivation. This is the time for us to shine. Would you mind explaining to me about how the payout options work? I see that 50/50 is the default setting. Is there any reason I should ever change that setting on my posts? Thank you.
You are welcome!
Steem on!
About payout:
For most of the time I think you will keep 50-50. Because that means you get payout in liquide and invested Steem.
Invested Steem is in effect what you see in your wallet as Steem Power. This would take 104 weeks in equally divided payments to turn into liquid Steem.
Steem Power determines your voting strength. And also how much investment reward you can get. So, the more SP you have, the stronger your vote weights for reward distribution. And you get bigger rewards from the investment reward pool.
Some take their payments full in Steem Power. Thus locking more in investment. Benefit is more voting power and more gain from every investment pool payout round.
This could be a choice when the market price for Steem is relative low. Say a round payout is worth about US$ 10, at 20 cents per Steem it could get you 200 SP.
At 50-50, you would get a part in SP, and the rest in Steem and SBD. This you would use if you wanted to do something with part of the payout.
And the third is one where you decline payout. Then a post will lock itself out off the reward pool. So just blogging. In some cases I have done so.
To summerize:
50-50 if you want to monetize half of your payout. This becomes available in Steem and SBD to you.
steem power is you want all your payout invested for voting power and investment growth.
decline payout if you want to just blog without any rewards.
Thank you for explaining. I just had another user asking me the same question I asked you. I will pass along the information. Again, thank you.
Glad I could be of assistence.
You're welcome!