The Money or the Steem?

in #steemlast year

Just a very quick post concerning the price of Steem for those looking short or long. When it comes to earning Steem from the inflation pool, due to a lack of competition on posts and comments, there has never really been a better time to earn than now, but this also comes with a caveat in the way voting behavior works.

When prices are declining and living in the basement for long periods of time, the tendency is vote voters to consolidate their voting practices and tighten their circle to those they have more faith in. This is why the community and developer orientated posts are going to generally do better at these times than the general topics.

If we imagine when prices were up, someone with a 100 dollar vote might spread that vote in 20% lots, so 50 votes in a day giving 20 dollars to each. They might of course give some larger votes to some over others but, just as a guide. That same 100 dollar vote is currently worth 5 dollars which means that under the same process, they would be giving 1 dollar to each post. What people forget of course is that it isn't the price of Steem, it is the vests doing the voting.

What this means is that during their consolidation of voting, they are voting with more vests. So, if they were giving 20% votes before, they might be giving 40% votes now. This means that what was a 20 dollar vote once upon a time would be a 40 dollar vote when those times return.

For me, I have been trying to spread my votes out and even though I might be only adding 10 cents on a post, I see that as a 2 dollar vote of the future as price increases. This is because the way I see Steem, the future value is much more important than the current. When it comes to fiat value, a dollar now is going to be 95 cents in 2 years.

While the psychology likes to see higher fiat values on posts, the reality is that those who are looking long-term on Steem are likely earning much more that if prices were adjusted. Earning Steem is part of the goal, isn't it? Well, for me it is because I don't have to live off it.

As said with the developer or community posts earning more, this is because those with Steem want the price of their coins to increase and most see that building the network and populating it with people intent on building the network add value. If there was ever a time to be part of the community, it is now.

There is a lot of FUD going around the entire crypto scene but many people on Steem don't seem to acknowledge that the entire industry is in a very similar position. Currently, price means nothing in regards to the value of a project (except for Bitconnect).

It is the responsibility of each of us to make our decisions the best we can based on the knowledge we have and a large part of that is going to be tied to the information we surround ourselves with. Surround yourself with FUD, expect to experience FUD. I am not saying ignore it either, I am saying that everyone has their agenda they are trying to push, which needs to be taken into account when evaluating the information provided.

My position is that Steem is a highly viable investment and community option that has a ceiling so high that most can't imagine those kinds of numbers. For me to sell now would give me a little bit of breathing room in my immediate life but, would not change it significantly in the long term. Probability says I have 40 years or so ahead in my life and my daughter has 80 or more. I don't want breathing room, I want life changing so what I do is work toward that end.

The thing is that if I get life changing from being on Steem, so would you. You play the way you want to play, listen to or be a spreader of FUD or work toward something fundamentally better, the choice is yours. This is the thing with a decentralized community, your life and behavior is up to you.

Be a part of it if you choose.

Taraz
[ a Steem original ]

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Hi
Thank you for this post. I agree with much of what you have said. I think it is more important then ever to realize that: 1. We are earning Steem not dollars, dollars lose value on a long term basis, due to inflation, but stores of value like gold, oil, Bitcoin and I believe Steem will increase in value long term. 2. Those that buy Good investments at artificially low prices in bear markets can profit greatly when bull markets return. 3. Although the market cap on cryptocurrency is Down, many large players in traditional financial markets are making large investments in cryptocurrency now, which suggests these large institutions believe in the future profitability of cryptocurrency. I realize that it is possible that we are wrong about Steem, and we could be riding the wrong horse into the coming bull market, but if we are right the profits for those who buy now will potentially be life changing. Steem On!
@shortsegments
Upvoted, commented and ReSteemed.

I realize that it is possible that we are wrong about Steem, and we could be riding the wrong horse into the coming bull market, but if we are right the profits for those who buy now will potentially be life changing. Steem On!

This is always the risk with any investment but the benefit here is that we have more than one business in the pipeline. One or two application explode, so does Steem.

I don't want breathing room, I want life changing so what I do is work toward that end.
@tarazkp

That's well said.
I'm here for quite a few years, too.
Exponential technology.jpg

A few years in and our world changes a lot.

That's all true I think. I only hope that the SMT development doesn't get cut back too much because of the 70% lay offs at Steem.

I think a lite version that develops would actually be interesting for the developers to get their hands on. tHe 70% included non-devs too.

Another factor to consider is that most of the tools we currently use for voting are overstating your vote value due to witness broadcasted pricing of Steem around $0.40. This is important because the dust threshold is $0.02 which means that any post/comment below that amount will be return to the rewards pool and not be paid out. If you vote for a $0.02 value it is really lower than the dust amount at this point so reconsider those vote values. Also consider using @dustsweeper which could help smaller accounts (no affiliation although I use it still).

Posted using Partiko iOS

I use @dustsweeper but if one has low power/vote, I think it is worth voting on posts rather than comments at times like this.

For many who joined around the time when I joined, during a period of rising Steem prices, they were often complaining about how it's unfair that they didn't join at lower Steem prices.. Now that Steem prices are lower, so many of those same people are long gone.. It's a sad trend to watch.

This is crypto, there are ebbs and flows in price that aren't for everyone.. but to say you want more opportunity, then not try when opportunity arises -- that's just silly. Clearly there were many "fair weather fans" who simply wanted to get rich quick as opposed to help build and shape the community.

It's nice to see so many people who I followed from the beginning are still here and still working toward building the community and making a difference! (hint: you're one of those @tarazkp, Thank you for keeping it up!)

Now that Steem prices are lower, so many of those same people are long gone.. It's a sad trend to watch.

They wouldn't have lasted through the lower prices or, wouldn't have realised (like I didn't at the time) what an opportunity it was. Take me back knowing what I do , please :)

It's nice to see so many people who I followed from the beginning are still here and still working toward building the community and making a difference!

It really depends on who they surround themselves with. I know some of the negative types who once earned very well are gone but, they flocked with others similar. Was it the system that failed them or them not adapting to change?

You are indeed veryyyyy responsive @tarazkp

I like to see that. A lot :)
Piotr

These are the golden words @tarazkp it's better to keep the people engaged with community centric posts and updates which help them in building good repo among the audiences. ... noted and hope to continue to work on these line. ....need to be with Steem till end👍

Posted using Partiko Android

If we want a world without centralized governance eventually, have to start breaking away from relying on their currencies alone.

hi @tarazkp

Interesting choice of topic.

This is why the community and developer orientated posts are going to generally do better at these times than the general topics.

I never actually thought about it.

There is a lot of FUD going around the entire crypto scene

Im not sure if I completly agree on this one. I think there is already very little FUD happening. Most people seem to be very tired and not even interested with any news.

Most people who are still part of this market seem to understand, that trust towards crypto has been broken and it will take time to recover. It does take time to recover trust.

And with current developments, with STO coming, with Switerland taking a lead in regulating their crypto market ... we can all see direction. And to tell you the truth, the last thing crypto needs right now is another bull market. This space need time to develop and adjust regulations and only then we should think of attracting investors.

Wouldn't you agree? Im curious of your valuable opinion

Yours
Piotr

Most people who are still part of this market seem to understand, that trust towards crypto has been broken and it will take time to recover.

The people who understand yes, the ones who bought into the hype at highs are feeling the pressure. They are holding on but not happily as they were expecting moon. This of course depends on where you spend your time though I think and for me, it is mostly on Steem :) But even here, there are those looking long and those short. The ones looking short are more prone to spreading and feeling the pressure.

This space need time to develop and adjust regulations and only then we should think of attracting investors.

I agree a lot with this and it is the same with all of the projects where most will be vaporware that never sees the light of day. People worry about Steem price in comparison (no longer top 50) but I don't see that as an issue due to use case. When the real investors come in, a lot of the promise speculation will ease up and health/ performance will be factored into the investment. Steem has a long way to go but it is one of the projects I think that has a team / community willing to develop the project itself, not just the price of the coin.

hi @tarazkp

The people who understand yes, the ones who bought into the hype at highs are feeling the pressure

Good question to ask would be:

  • how many investors are still out there who bought into the hype and still didn't curse 1000 times and didn't sell it all, promising themselfs that they will never ever trust crypto again.

Most of those people call Bitcoin a scam already and they are long gone. Perhaps some of them are still holding on, but their resources are already meaninless. Just imagine that everyone who invested 10k usd (once BTC was around 20k) then currently this investment would be worth very little. Those people do not really count any more.

Someone who invested 1k usd a month ago can have more "impact" on the market that anyone who invested in dec 2017. Wouldn't you agree on that?

Again thank you for sharing your thoughts with me,
Yours
Piotr

Taking the long shot will mean that we will not liquidate Steem for my daily expenses and treating it as asset. As of now, my positioning is like how you put it where I disregard the price value but the amount of Steem I hold 😁 Steem on!

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I am pretty good these days of not seeing fiat prices at all here :)

Ya, love the feeling. Since it is at its bottom anyway, looking at it will not bring me any joy 😂

Posted using Partiko iOS

I'm here for the long term! Thanks for the encouragement!

This what am saying, just continue posting, you are getting more now even though the price is low.

Yep, there is more to be had than in a very long time.

I can't wait to make lots of happy dtubes, when you posting $ power is massive!

lol

Just think, the vote I gave you today would have been around 15 dollars or more in January :D

....thinking gets me in trouble - and thinking about that brings a tear to my eye!
lol

Your wife is now helping you to look for some more work...
lolol

https://steemit.com/blog/@lucylin/m60csiwn

I am out and about with no headset so will have to get back to it later :)

No worries...it's only about more work...lol

Great reasoning - will keep this in mind and try to visualize every cent now as worth much more in long term ;)

a cent today was 40 cents 12 months ago and could be 80 cents 12 months from now.

Well said
Steem on
Here is my future $2 vote for you:)

Posted using Partiko iOS

Thank you very much :)

You are right. This is the best time to earn Steem. I have noticed getting upvotes from new people and thats obviously because there arent many people posting. But in the same time I miss the good days when it was crowded and we had many contests etc. So lets wait for the good days to come again :)

Contests are filler content and will never really build the foundations but, they can be good ways to earn :)

Yes you are absolutely right, but they help newbies. I remember when I first signed up in Steemit I was posting mostly in every contest and it helped me gain some visibility. Also it taught me how to make better photos or write better comments. Somehow it kept people very engaged even if it had really no big meaning :)

Well said. So my 3000SP vote will also have a great value if steem price increases in future! As of now I'm trying to accumulate more steem which actually is not that difficult nowadays it seems!

If the price increases, 3000 will definitely be worth a decent vote :)

Excellent insight, thank you! I've been wondering about this myself. Steemit is only beginning to become as awesome as it will one day be...

Posted using Partiko Android

Yes, Yes and Yes to all of the above! And as I am not one to look a gift horse in the mouth, I am embracing this opportunity to build steem while the dollar value is low. This is not a time for negativity. The positives are staring us in the face, and I don't plan on to turn away from them.

Thank you @tarazkp for another very uplifting post.

This post has been included in today's SOS Daily News - a digest of all you need to know about the State of Steem.