Short-sighted from the start

in #steem5 years ago

If I bought a million Steem it would cost 130,000 dollars.
A million Steem has a vote value of 12 dollars (7 at current SBD rate)
That is 70 dollars of votes a day with ~35 going toward curation.
This is a little over 1000 dollars a month which is 890€.
I can rent an apartment like mine for less than that and if I sold my place now, I could buy a million steem and live rent and mortgage free until price recovers.

My wife would kill me. Plus, I don't think I have the balls.

winter alone1.jpg

It is an interesting idea though as we all like to think about what kinds of values we might need in order to live off of Steem. Depending on location, it can be significantly more or less, but in order for me to live entirely off curation, I would need Steem price to be around 12 dollars to cover all expenditures.

Of course, with both my wife and I currently working, living completely off of Steem is not necessary, nor would I really want it to be the outcome. I would like to have the option available however as I believe that things are going to get much more economically uncomfortable in the global economy relatively soon-ish.

Remember though, SOON is when Steem is going to moon, and SOON is when the crypto winter for alt coins will end.

Sometimes I feel like I am in the picture above, standing out on the decking and looking into the white with no visibility on anything. But, that is just the feeling. In my head I see things quite clearly and estimate the future to look much brighter than the doomsday predictions on crypto may be.

There are always doomsdayers during every new industrial revolution who say it will never work or, the end is nigh, when the start hasn't even happened yet. Ten years is no time at all for an industry to get off the ground and walk, let alone run. And this particular industry challenges one of the fundamental technologies of our society - money.

Yes, money is a technology, a tool that we can use as an extension of ourselves to perform and ease tasks that we might not be able to do otherwise. How many spears is one shield worth, how many berries or pelts? Place an arbitrary unit of measure that can represent each, and then the marketplace sorts out the rest as the laws of supply and demand kick in. The money tool empowered trade and lowered risks for participants by acting as a proxy for goods.

Tokens like SMTs are just markers, but unlike fiat money, they have special attributes as they carry rules that can be applied as they move. Rather than just trade one for one, a host of interactions can be bundled that give a new set of tools to use. Fancy money.

I don't think we have really developed many ways to use these capabilities yet as we haven't got far past the idea of it acting like money. It is a self imposed limitation as while money can be used to buy reality, tokens can actually represent a reality, digital or not. This is the ownership component and the difference between having 100 dollars in a wallet or 100 dollars worth of Steem - They are not equivalent.

The 100 dollars can buy its value of something, but the 100 Steem can be used in multiple ways to generate alternative values beyond the currency aspects. A non-fungible token has different attributes again and can be used as a unique marker to indicate things like ownership or authenticity - for example for digital trading cards.

These additional capabilities allow for a much wider degree of actions to be performed while removing much of the risk of money through traceability and verification. Most of the ways tokens are going to be used by people have not yet been considered and once more participants with various backgrounds and skills get interested, the evolution of use will increase exponentially.

I wonder if a hundred years ago Henry Ford could envisage where the car industry would be today and then, what about the visions of the random person who at the same time had only heard about cars from the news paper. Most of the world has yet to come close to blockchain and crypto technology while those of us already here, use it daily. But, our daily usage or time in the industry isn't indicative of our imagination for its future development and if anything, we are likely the least creative as we are heavily influenced by what has been done so far.

In five years from now, the blockchain and token industries are going to be doing very different things than they are today, and we can see that the development on Steem applications is already distributing. A new crypto recruit in 2025 is walking into a very different experience than we did, one that is more mature and has a greater level of development and refinement. What they are empowered to do with it might be far from where we are looking toward today and their focus could be wider again.

Our relative starting points heavily influence our direction in life as it is from there we start our thoughts and from there we begin to form our habits. The length of time doing something doesn't indicate one's ability to innovate away from what is currently being done and more often than not, can be a great restriction on our creativity because, we think we already know it all.

From where we stand today on the crypto pier, how far can we really see?

Some will sell their house.

Taraz
[ a Steem original ]

Onboarding

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Though hopefully the person in the example wouldn’t actually upvote 10 posts of their own each day. But bottom line, this is an investment not an expense. Just have to make sure one has money they can invest long term

Posted using Partiko iOS

The 35 would be on curation, no self vote needed.

One of the problems many of us deal with is, no matter how much is coming in, there is nothing left over to invest. Nothing for when opportunity knocks.

I was going to comment on the self-voting, but I see someone else already has done so.

Still...

  • First of all, I cannot see anybody, day after day, making 10 posts a day

  • Anybody does that kind of self-voting is going to make a lot of socialist vigilantes happy, as they will have some serious flagging to do

  • If you are self-votting, did you calculate the curation deducted correctly...since you will also earn as a curator of your posts?

What I would enjoy seeing is someone buy much more than a million and have their fun posting, upvoting a few deserving small posters while earning and flagging all those who flagged him when he was a small fish.



While I am here, can anyone explain in a way we all can understand how the curating works? I've understood that I must wait 5 minutes, yet I see big accouhnts upvoting within the first few seconds.

2nd puzzles is: only the first 30 upvoters earn something (it seems this includes those who voted before the 5 minutes). What about a post, just to make it easy, let us say it earns $6 (Steem), $3 goes to the poster. Three gets shared by the 30, but, there are only 6 'curators'. Does this mean they each get 0.50c?

And here is where I get confused. Does it depend on the voting power so that those with big SP earn a larger share?

Does the 30th voter also earn but at much less?


I have not seen anyone explain or answer these questions in a way I can understand.

$70 vote value a day.
35(curation)x 30(days) =1050
No self voting.

I am adding this comment as it struck me that you did not mention the best reason of all for using the exercise you mentally played with.

It is extremely likely that sometime within the next year or two, most currencies will drop in value - banks are getting close to bankruptcy again, despite the billions they took from us taxpayers not so long ago.

With Steem being at 13 to a dollar, the likelyhood of it dropping is not as likely and if it does, it will be to a smaller degree.

However, should the other currencies drop, steem will appear to grow stronger, since you will be able to sell Steem for more dollars (for instance).

The only major problem I have with Steem and crypto currencies, which nobody seems to talk about is: what happens if the internet collapses? or thanks to the UN it becomes so strictly regulated we can no longer use it?

lol - I just realised....if your scheme is based on curating, all those nasty little accounts who have no posts or comments, all they do is flaf, how would that affect the curating if they affect the earnings of whoever you curated? I have just yesterday seen people complaining about this exact problem, losing what they voted because of flags

I didn't mention many reasons, and there are many.

OK, so you don't know how curation works. I am on my phone now, but I will be home in a couple hours and can answer, if no one else does.

All voters will earn, the UI generally only displays the highest voters. All can be seen on Steemworld.org though.

The voting is a reverse auction. Voters voting at 0t are giving up 100% of their curation. 1 minute are giving up 80%, 2.5 minutes 50%, 4 minutes 20%.. But, those in earlier will benefit from those who vote later, so there is gamofication in the timing.

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Wow. That’s a pretty radical idea, but I see the numbers add up. It’s paradoxical how selling your home and buying an income producing asset allows you to live rent free. It’s ironic how giving up your current security; home with mortgage, a non performing asset, (generates no monthly income) for Steem, an performing asset (generates monthly income) provides you more security.

I had to pause and think about what you said.
We all think that owning our home provides us security, a place to stay or a roof over our head. But does it really? The majority of us don’t really own our home, the bank owns it and we are paying a mortgage. If we get sick, lose our job, or die we stop paying our mortgage and we lose our home and become homeless. How secure is that and does it really represent security to own our home and pay a mortgage.

I contrast that to the situation where you sell your home to get your equity out of it. Now buy an income producing asset and now your rent is essentially guaranteed regardless of wjhether you lose your job, get sick or die. That income will come and your rent will be paid. Even if you have to move because your landlord sold your home. You just rent another place.

This is looking at things from an entirely different viewpoint then we are culturally raised to think. But if you think about it, if you do what everyone else is doing, you get what everyone else has. A house, a mortgage and a lifestyle where you are one missed paycheck away from being homeless.

The funny thing is we know this to be true. But we ignore it and go with the crowd. Because that’s comfortable. We would rather be financially living month to month and follow the crowd, instead of break off from the pack and build our own success and security.

✍️

It is a strange paradox, it does have its risks though :)

How secure is that and does it really represent security to own our home and pay a mortgage.

I see security comes from the ability to adapt to situations, and in many ways, having a house (even paid for) can limit movement.

The funny thing is we know this to be true. But we ignore it and go with the crowd. Because that’s comfortable

And, we feel it is better to fail as a group as it protects our ego as we were all wrong.

We are looking into the fog, and it takes some belief to hang on during this chilly phase. But if you’re only investing your time, it is pretty darn painless and non-risky. There are great people to connect with, and there’s interesting content to read every day. I do believe there’s a bright future through that fog, and it’s therefore worthwhile to invest time and/or money (and I do wish I had more of the latter), but meanwhile this is a lovely place to hang out!

Many do what they would do other paces anyway, so it is not only no/risk, it is social gain. I hope there are many gains to be made here and many benefit from the process.


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Though hopefully the person in the example wouldn’t actually upvote 10 posts of their own each day. But bottom line, this is an investment not an expense. Just have to make sure one has money they can invest long term

Posted using Partiko iOS

Seems to have double posted, but to repeat, this is curation only, no SV :)

Well, we currently do not have a house, but if I did, I'm pretty sure we'd sell the damn thing!! hahaha. We'd buy an RV and call it the "RV crypto challenge" lol! Really enjoyed this and like where you're headed. :) Cheers to STEEM!

Crypto challenge... "Can you wait til the moon"

Events

  • hodlers delight
  • I sold low
  • Crypto is ded
    ...

:D

Wow! I read this article and I must admit that when I first read what you said I was not feeling the wisdom of it. But then I realize that I have been conditioned to think the way I do and this article is suggesting that I expand the spectrum of my thoughts from conventional to non-conventional.

I think it would be scary to sell my home, as small and unassuming as it is :)
And buy Steem.
But I must admit that looking at the math I have to consider whether what you propose is a better investment then my home.

If Steem increases in price by ten times in 1-2 years and goes to $1.60, I would have ten times as much monthly income. I don’t know how likely that is to happen, but it seems more likely then my home increasing in value ten times in 1-2 years.

I don’t know how secure I would feel renting.

Thanks for making me think.

Posted using Partiko iOS

But I must admit that looking at the math I have to consider whether what you propose is a better investment then my home.

It is just something to consider as we have been conditioned to feel secure by buying a home, yet for at least the vast majority of us, what we actually have bought is debt. A bit of the old switcheroo.

There are always places to rent and the coming economic collapse is going to smash housing prices, which would make it a good time to buy. My wife would never let me sell our apartment for Steem, but I know that there are some people here who have the potential to buy in and benefit greatly, though there is risk.

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