Buying STEEM every month for a year
Ten months ago to the day I wrote a post about the impression I might make on my customers if they saw me stacking shelves at the local supermarket. I think it is an interesting read so give it a go but, here is an excerpt:
This was just a hypothetical question but got me thinking, How would 450 euros look per month in the cryptocurrency world? What is a likely return? Adding 450 a month and assuming a low-ball 5% (22.50 on 450) return per month and rolling over gain to the next, I think it works out to around 8400 (?) euros per year. Do you think you could do better in the market than 5 percent per month? With many of the traders here, I'd suggest probably.
So, since I gave this article to a friend a few hours ago and since I wrote about investing into Steem tonight plus, it is quiet, I thought I would look at some very basic numbers. I am terrible with numbers however so I kept it very simple.
If one earned $450 US doing a part-time job per month to invest and bought STEEM on the 11th of every month, never traded and just held it, what would the value be today?
The first chart is starting from the 11th of March, 2017.
Yes, that is right. The total value from holding STEEM would be $31,257 on an investment of $5400 over the 12 months. That is calculated with 12210 STEEM at $2.56 (price at time of writing) and is about a 550% increase. Not bad, right? Oh, also at time of writing, that 12210 STEEM would have an upvote value of 2.02 but, that could have been getting used for the last 12 months compounding.
But, look at the first two months, most of the Steem is added there so I decided to go with when I wrote the post 10 months ago instead for chart two.
The investment would have been $4500 to buy 3226 STEEM and would have a current value of 8,258 and an upvote of $0.53. A big difference to be sure but, it is still around a 90% increase in value.
Again, these values are just holding and buying at the listed price on the 11th of each month. What would happen if actually trading, self-voting posts, curation? How much STEEM would it be? Well, a significant amount more and depending how one does trading a very high amount more. But, even without trading, both scenarios outperform any traditional investment by a mile or ten.
Now, what would those values be at the January 4th all time high (ATH)?
12210 x 7.28 = $88,888
3226 x x 7.28 = $23,485
Not bad on an investment of 5400 and 4500 respectively. Of course, we are nowhere near an ATH now but, how long until we are again? Hmmm, December 31st steem price was 2.65. Yes, $2.65 on December 31st with the ATH almost 300% up four days later. Things can move fast in the crypto world can't they?
But, this post isn't just about the money, it is about understanding how relatively small amounts can add up. The reason I shared the story with the friend was because I suggested they get a part-time job in a supermarket to supplement their earnings and they thought I was joking. I rarely joke about work and if needs be, I will do the most horrible jobs imaginable to provide for my family.
People often underestimate how much the future value of something may be or how going without a little bit now can have significant worth in the future, especially in crypto. Is any of this guaranteed? Hell no! But, there is a possibility that things will do very well and a high possibility that it will outperform a traditional investment at least.
Who knows where it will lead or if it will lead anywhere at all but, it does make life interesting playing around with these things. The volatility of uncertainty isn't for everyone though so know yourself and never, ever invest what you aren't willing to lose completely and totally. For me, that means a whole lot of time and a little bit of money but, for the upside potential, I am willing to risk it.
The best part is that while I am risking my time and effort to earn, I am also helping people earn for themselves by adding value to their time and effort. How many investments work like that?
Taraz
[ a Steemit original ]
This is crazy! With a crystal ball I would mortgage my house to buy back in March of last year! $0.074 for 1 STEEM seems like the bargain of a lifetime. Maybe March next year these prices will look like a bargain! Thanks for the reminder about prudent and consistent investing! Thanks for the post!
And those figures, as you say, are without a single piece of content produced or a single vote cast. Staggering when you compare interest on savings, for example.
In around a months time, it will be a year since I bought my first STEEM. I was hoping to reach 10,000, so I've have a nice round number to talk about, but 9245 will do just fine too :)
Just added my first small sum for this year, same again will do nicely!
It is amazing indeed and I posted it for all the people who feel that things are 'low' now. I haven't been able to buy much directly so for me it has been through sweat and trading sweat.
I wonder where we will be in another year?
If I had to take a bet I would say up but if this shit hits 1 satoshi I won't be surprised.
You've been reading too many crypto_analyst posts I can tell! haha
1 BTC would be phenomenal, there is a long long way until we can dream of that!
I said 1 satoshi not 1 BTC. :P
haha!
So you did!
You bloody pessimist I'm muting you right away! :D
I'm going to say we'll remain somewhere in between those, now where's my whale vote?
Here, have a half dolphin vote with my half drained VP 🤣🤣🤣😂😂😂😂
Why thank you kindly!
yes, penthouse or under a bridge. Either or, it will still be a fun ride.
It feels like a good time to start taking a look again, but until the markets settle we just don't know.
I can see a similar pattern for this year - not much action for the most part (as i think SMTs will be 4th quarter) and then hopefully some nice Christmas cheer :)
Actually I have lost all hope about things like smts and communities ever coming out. However, I am really optimistic about the impact of dtube and similar projects :)
Certainly taking their time with it, i see SMTs having more impact that communities.
Agree that @dtube could be an absolute winner though!
I think that if, or hopefully when, SMTs hit it's a massive bonus. But without them steem still looks really attractive. Speed, fees, and capacity all put Steem in a position to allow for a lot of growth.
Hopefully some growth, does it need to go up 5000 times? No. I'm trying to be realistic. It's still going to be a while before I can wrap any logic around this or crypto!
I prefer to earn steem but I have never regretted buying it. During the 10 dollar plus sbd period I cashed out so much I had basically put in zero dollars and my account at the high point was worth 4 thousand dollars. I have never regretted buying steem I just regret not buying more
I was powering nearly all of it up. I took some to exchanges to get a better rate on Stem but most has come back. I am yet to use a dollar of crypto for personal life.
Good post. Seeing the numbers on paper(paper?) makes them real.
Investors who purchase on a steady basis and hold do much better than the vast majority of traders. A hard lesson for me to learn. I've made some dumb choices due to fomo and fud, but I'm still ahead overall.
Thanks for writing about this stuff, I have SO many questions. What you explain makes perfect sense to me. I hope steemit holds and continues to bring in good content or doesn't get rolled over by someone watching the mistakes.
I think the math becomes even more interesting if you calculate how much STEEM you would have gotten from the 10 upvotes a days for the entire duration.
I used to power up all of my Steem, and it was a great decision to do so. Nowadays I'm kind of half and half with it..... although I'm thinking of powering up some more soon. As the fellow below me said, it could go all the way up but just like any crypto it could go all the way down. My money is on up though.
Thank you for the good post very interesting to read @tarazkp
Wanna circle jerk? You go first!
That makes a lot of points. Many we here to make money and are not ready to risk anything
The thing about investing in cryptocurrency is - it isn't stable.
Because the price depends on the buying power. Somehow when you buy Steem continuously for 10 months, you are responsible for the increase in price.
So, if everyone bought 1 Steem today then the price will rise for tomorrow.
That is the gist.
Take care...