Minnows in a Sea of $10 STEEM

in steem •  16 days ago

First off, some assumptions. Let’s assume that over the next few years the Steem blockchain ecosystem as a whole will have healthy growth and that the crypto bear market will end and turn into at least a modest bull market.

Steem has already been above $8, so seeing it at $10 at some point down the road doesn’t seem like too much of a leap of faith. Sure, maybe it will Moon. We’ve all seen three-digit predictions for Steem’s price, with the occasional four-digit target. But for the purposes of this post, I’ll be using a much more modest target at the low end of two-digits.

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Right now, it takes 498.5 Steem Power to have 1 MVests, the threshold to becoming a Minnow. According to the latest statistics that @arcange has posted, there are 9,123 Minnows who have a total of 26,985 MVests, so on average Minnows have 2.96 MVests or about 1,475 Steem Power.

In an era of $10 Steem, how much might such an “average” Minnow earn?

I’ve seen several posts about strategies for earning Steem. There’s of course the upvote yourself 10 times a day at 100% “It’s All About Me” method. Crunching the numbers at SteemNow suggests that an “average” Minnow can earn about 1 Steem per day that way.

Personally, I think that the “It’s All About Me” strategy is very shortsighted. Someone employing such a strategy is essentially turning their back on any shot at community engagement and all the potential possibilities made possible by such engagement. But let’s use such a strategy as a baseline. Earning one Steem a day from a 1,475 Steem Power account works out to roughly a 25% annual return on investment, even without reinvesting for exponential growth.

In an environment of $10 Steem then, $10 of daily income. Maybe just a couple of lattés a day for the First Worlders among us with a caffeine addiction, but for Steemians who live in poorer countries, $300 a month could represent life-altering income.

We saw earlier that there are 9,123 Minnows right now, at a point when there are a bit over a million accounts on the Steem blockchain. How many minnows might there be in the future?

The Steem blockchain has just over a million accounts. Reddit has several hundred million. FarceBook has a couple of billion. Maybe we’ll never have as many as FB, but it’s not unreasonable to think that the number of accounts on the Steem blockchain could grow by several orders of magnitude over the next several years.

It’s relatively easy to become a Minnow now. It’s likely to become much more difficult in the future. At first look, it might seem that if there was, say, a thousand times as many Steem accounts as there are now, there’d probably be a thousand times as many Minnows. But that’s not the case. So if you want to become a Minnow (or Dolphin for that matter), now is an excellent time.

Disclaimer: This should not be construed as financial advice. I am not a registered financial advisor; I don’t even play one on TV. Do your own due diligence. Batteries not included. Objects may be larger than they appear in mirror. Some assembly required. Do not taunt Happy Fun Ball.

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honestly when you think about it even if we had just a million users that only leaves 300 coins per user. Once you factor in that we don't have an even distribution of coins that number goes down to like 30.

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its a bit like BTC, there are only 21 million with a lot lost... and that seems to be able to hold 3k for now. Divisibility accounts for a lot
but its a valid point to make. 300 milllion coins, roughly 10 billion humans, 0.03 steem per person. I would say we are ahead of the curve

The way i remember 8usd steem was that buying steem at less than 2 for a dollar didnt make sense based on the roi.
I figure if we get over 5usd we will be doing good.
If we could get to .2usd I'd buy more.

$10 Steem would see me leasing out $300,000 worth at 2% ($6000) a month, with another $570,000 undelegated; dropping $35 100% upvotes and pulling in another $6000/month in curation rewards.
So yeah, living on $500 day, while giving away $350 a day; I think I could scrape by on that :)

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Yeah, I’ve got a little more than a tenth of your SP but even that would represent significant supplemental income if Steem stayed above $10.

Congratulations! This post has been upvoted from the communal account, @minnowsupport, by Edicted from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, 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.

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I'm just steeming along, my little minnow self (a little more than half your average SP number, right now). I remember when minnowhood seemed miles away. It took me about a year to reach it!
$10 Steem would be life changing for this first worlder, that's for sure! :)

Yeah people are going to look back at this notch in time and think it was so obvious to invest. Hindsight 20/20

Great post! I'd never really thought that far ahead into it. I also really like the linked post about account type distribution, and beyond that lukestokes's on how we actually receive 'interest' on our SP, didn't realize that was how it worked. Cheers!

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You've gotten me bullish. 😳

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It was good to read :) ... and to think that steem go back 8 $ and more ... I think this also ... I believe next run steem go something max 15 to 16 $ :)
But first we need to get back 1.50 $ just now :)) And then we start make next step.

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its nice to imagine stuff that might indeed be a life changer. Until then i will just keep posting and hoping for the best :-)

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