Hodling STEEM Power makes STEEM

in steem •  4 months ago


Source

I wrote a post a while ago that explained the difference between STEEM, STEEM Power, STEEM Backed Dollars, and Vests. It was a response to the following comment I noticed on a post:

image.png

The comment assumed STEEM, STEEM Power, and STEEM Backed Dollars were the three currencies, but there is no such thing as STEEM Power. If you want to understand why read my post.

This leads me to this post, I am surprised a lot of people do not understand that just holding STEEM as STEEM Power will give them more STEEM in the long run. Before I get into that, I want to quote the important part of the article above as it will help this make sense.

Vests

Now here is where people get lost. Vests are stupidly confusing and not very well understood. When you power up and buy "STEEM power" you are buying vests. Vests represent how much ownership you have on the platform. It is like buying stock, you claim a small piece of ownership. If you have enough ownership you gain influence. In the stock world, this influence is shareholder meetings and even the ability to influence the direction of a company if your stake is large enough. On STEEM this influence is voting power. The more ownership (Vests) you own, the larger you can influence (Vote) on the platform.

Once you understand you are buying "Vests" and not STEEM Power, things make a little more sense. Buying Vests (aka STEEM Power) is like buying stock in a company. You are acquiring ownership on the STEEM platform. The ownership (or Vests) are worth more as time passes, and are more expensive to buy with STEEM. If you look at how much 1 MVest (1 Million Vests) is worth today compared to 2 years ago, you can see how much STEEM you would have gained by hodling STEEM.

STEEM per 1 Million vests

Today - 491.663
2 Years ago - 197.416

If you had powered up and bought 1 Million Vests two years ago, it would have said you powered up 197.416 STEEM Power. If you have powered down today, it would power down as 491.663 STEEM Power over 13 weeks. A net gain of 149% of your initial investment, without placing a single vote.

Those gains are so big, even Arnold Schwarzenegger would be proud.

The current rate is far slower than the initial two years and will only be a couple percent a year, but still more than institutional rates.

giphy.gif



X48EJ

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Using up-voting bots makes STEEM stay $3 @ forever my friend.

No newbies want to buy even a small amount of STEEM

If you want $100 STEEM then, you must give some rewards for new steemians. If not STEEM will go to $0

If you want to win, we win together or newbies will go where they get reasonable reward for their contribution.

Time to decide my friend

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I would be happy to know where will be people going to get reasonable reward for their contribution?... LOL... Facebook?, Reddit?, Twitter?, Youtube?...

There is no competition to steemit right know, this is the only platform that will give you some reward for posting, even if you are a newbie... Other business models requires a lot more of work and investment to get some little reward...

Yes, self voting is ugly, but sometimes i think we should stop wining about it... In real life, people who have a lot of money will use that money to get self benefit, this is not different here...

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Yes I 100% agree.

Humans are just too greedy wherever they go.

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There are competitors.. Check out Primas, moving out of open beta and coming online this week. It's like Medium quality content with a community incentive system like steemit but more fair and without the centralisation.

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built on ethereum...it is junk already

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LOL I like your comment. You should self upvote that one! My votes are below the payout threshold.
Maybe a competitor will launch on EOS but I've heard of no real competitors now. I think minds or something has a token but you can't trade it so what good is that.

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Can move between public chains

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100% capacity and backed up 43k transaction... you can take a nice nap while it "moves between chains". And this is supposed to be a competitor? come on. golos runs circles around that project...lol

http://blocktivity.info/

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I guess i messed up when i sought for an upvote on steemchat.

Well don't blame me, i was desperate for upvotes and didn't think much about building friendship and forming alliances.
Can you perhaps give me a second chance by unblocking the chat section you closed between you and I? Sorry.

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hey @nathanmars, this is exactly what we are doing with #comedyopenmic / @comedyopenmic we have given out ~1000 SBD and ~270 Steem and attracted total paid-out of >$15,000 worth in upvotes and prizes since we started (data from SteemSQL) all without bot votes, so 100% profits for original comedy content producer.... come checkout what we're doing and see if we can help bring Steem to >$10.

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This world has more serious problems to be solved than supporting comedy content producers.

You can do what you want with very limited time given to you.

Please don’t judge me and I won’t judge you. Let it be wonderful :)

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not judging at all, in fact, I'm in agreement with you.

as for world problems, well, we're current focus on the world of Steem and obviously you are a serious Steem investor so I thought it would interest you to know that comedy has been the biggest retainer of all social sites

why do you the subreddit s/funny is the biggest sub-reddit with 50million members?

or why facebroke and dubetube consistently run funny videos and content randomly into their users stream to keep them engage and coming back?

our goal is to bring authentic comedy content creators and enthusiast into the blockchain, we're just starting with Steem first, and hopefully bring up the value of your wallet.

Here's a quick vision snapshot of the next 12months:

  • raise upto 100,000 of delegation to keep the community self-sustaining
  • grow a community of 50,000 engaged Steemians
  • raise original Comedy entry to 500/week or >150,000 original comedy entries.

mid term vision 1.5-2 years.

  • bring in 1% of subreddit funny or 500,000 new Steem accounts who supports or appreciates comedy with content, engagement or just help build the community

we're a community volunteer based account growing on the graces of Steemian large and small, if what we're doing isn't part of the solution, we would not be currently trending as one of the tags with the highest average paid upvotes....no kidding, go click on the link and see for yourself.

they say laughter is the best medicine.... maybe laughter is also good financial medicine for blockchain technology, especially for the likes of social media blockchains like Steem, don't you think?

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Yes I agree laughter is best medicine.

There are thousands of people are dying of unnecessary wars. So what I’m doing is kind of more meaningful to me and I come from a place where thousands of people killed by internal war. At least in my own view.

I 100% believe that you’ve your own argument for doing what you’re doing is meaningful to you.

If I meant to rethink about you then I’ll :)

Peace

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we're pretty big supporters of Video Comedy too, in additional to the regular comedy competition we give out special prizes to spur higher usage of DTube, DLive, etc

Check this out:

https://steemit.com/comedyopenmic/@comedyopenmic/comedy-open-mic-comedy-contest-round-15

Round 14 Prize Winners and Also Extra Prizes for Video (Dtube/Dlive) Entries:

https://steemit.com/comedyopenmic/@comedyopenmic/comedy-open-mic-comedy-contest-round-14-winners-post

If you like what you see, please throw us a witness vote to @comedyopenmic, we want to put our best Video and Comedy talent on Trending and we can't until we can raise Jester Prizes to 300 SBD which is about a $600 to showcase our best talenst in 1st page trending and put a crack into the bid-bot cycle of domination.

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Steemit gives a lot of rewards to newcomers (unlike other social networks).
The price of STEEM will increase if Steemit develops if readers (unregistered users) and followers will find quality and original authoring content they will not find elsewhere on the Internet. If the Steemians will accumulate STEEM Power and they will take care of the growth and development of the entire community and platform.

Steem On!

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Yes I agree with some of your points.

However you can't deny how many self serving steemians are here.

"Some Steemians are not taking a day off from getting their rewards unfairly. Why should I take a day off from making it better for most people including new ones"

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I understand.
However, I myself will rather not publish anything if it should only be for reward. I prefer to publish only what I enjoy myself and in what I can see at least of some value.

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Thanks for understanding my friend.

You seems like good steem citizen like many others.

There’re few bad Steem citizens and we’re many good steem citizens and first they ignore us, then they laugh at us, then they fight us , then we will win.

Let’s keep up fighting:)

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I believe that those who are here for easy earnings at any cost will quickly drop off. Only those who care about the community and the platform will remain here.

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100% agree!

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Yes sir
Lets keep fighting until we win

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Yes this fight is worth it!

When steem price reach higher price ($100), there will be so many people will have financial freedom around the world.

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Yes you are right sir
I really believe in steemit as I have seen it impact in full months here
Steem at $100, I can reach out to over 100,000 Nigerian with quality content and value who will make a living here.

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Right, look at the last six months or so and not two years. The picture isn't as pretty. The cheer squad is standing on a pile of dead plankton. These sorts of posts start to smell when they're not backed up by an improvements in the platform and awful content quality.

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As we speak, there are Blockchain developers are working hard to make Steemit a better platform and as a user we also should do something for the community to remove or notify people who are creating awful content.

Also Steemit is a like an ocean and there room for everyone to swim

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We'll just have to agree to disagree. I spent quite a bit of time here, but I've pretty much given up except for a few things here and there. I find it much more fruitful to spend time developing my following on Reddit or Quora, which are also a lot more fun for me. No, you don't get paid to post on those sites, but you can organically gain a following that will gain you eyeballs for projects you do monetize. Certainly, a few people find a way to do that here. A bunch of people I followed because I liked their content six months ago have thrown up their virtual hands and vanished.

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Do the work you enjoy and do it where it like the most.

May be Steemit not for you.

Most important thing is that you’ve tried and failed. Life is an experiment too.

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I think this guy should post photos of girls with big boobs instead of muscled men

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At least you know what you want for yourself. Good luck with you and your dream big boob girls. lol

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That social media network would be Sola.ai , if you not there already. Cats, boobs and butts are pretty much it over there.

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Blasphemy you don't like the Arnold!!

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hey it's me, the new steemian.

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Welcome to the Steem world:)))

As a newbie I haven't purchased steem. I want to but it is very expensive and won't change my influance. I'd need to spend $US5000 to increase to a good upvote amount and I don't have that amount of cash.

There needs to be a better way as currently all the Steem bots are milking the system and not helping build new members accounts.

There are a lot of people leaving Steemit due to this. There needs to be a better way.

Maybe rewards for steem purchases i.e. 10% bonus on purchases.

The reason the gains were so high the first 2 years is because steem started out at 100% inflation. Today if you wait 2 years you will get around 17%, basically the sum of each years inflation. So by powering up you just are immune to the effect of dillution by newly created steem (inflation). Self upvoting for visibility.

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even less, you'll get will get just more than 10% of that 17% (it's more like 18.5%) .....go see my comment to markymark below.

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Never understood people that self upvote their own comments

SBD should be consider as Steemit's currency. Which means people need to buy SBD and convert it into Steem. If people can buy Steem directly, then SBD will be useless. Steemit board needs to consider, whether to keep SBD by stop Steem trading or get rid of SBD.

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If SBD is effectively pegged to $1 it becomes very valuable for commerce. Unpegged it is just as useless as a second big toe.

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The only way to make SBD valuable is get rid of Steem trading. Ironically in Australia, you can trade Steem but not SBD.

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Why is it useless? This makes no sense. Especially when it has high value.

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It offers nothing that STEEM doesn't when it isn't pegged to $1.

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Nothing? That's logically incorrect. The payouts come in Steem Dollars. The higher they are the more value people get in return.

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The payouts come out in STEEM Dollars "now", but if we decide the peg no longer exists and will not be enforced it can easily be switched to STEEM and SBD can be removed without any impact on the system.

Right now, of course, SBD has some use because it is being used by Post Rewards, bots, and it has a value, but it can be removed and all that can be handled by STEEM.

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Perhaps. But Steem Dollars sounds cool. We should keep it.

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yes. sbd is like bitcoin, steem and steem power like
mining machine and electric power

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Best.Argument.Ever. Haha

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Why do you want to get rid of SBD?

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I don't, I just want SBD to be more useful.

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You think it's not useful right now?

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It's heading to that path

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This is properly explained and it is easy to understand. Thanks for this post.

Hey Mark. I see your point. For the same SP, the mVests increases as time goes, which is great! But one thing I don’t understand is that if I don’t perform any action the past two years, the SP amount won’t change, only the vests right? But others vests also increases right? So my propotion of the vest still stay the same, except for Steem price went much higher in the past two years, I don’t see why it is profitable.

I didn't know that. I have taught that if you power up 1000 STEEM you get same amount when you power down. Thanks :-)

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The same here, I didn't know about that part. The concept of Steem is so huge that if one spends a year here, he will keep learning new thing everyday.

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Look, your SP doesn't magically go up. He's saying that the value did increase in the last two years, so people who bought in then did make a nice profit. It's a different story if you take a look at the last six months. There is no guaranteed that you will make money. Past performance is no guarantee of future performance. He's a salesman.

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Look, your SP doesn't magically go up. He's saying that the value did increase in the last two years, so people who bought in then did make a nice profit. It's a different story if you take a look at the last six months. There is no guaranteed that you will make money. Past performance is no guarantee of future performance. He's a salesman.

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It's definitely not as much now but it does go up a bit and far more than institutional interest rates.

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is it valuable to a user to power down and rebuy steem vs leaving it in the account>

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Powering down then powering up again will result in less Steem Power depending on how long you hold it before powering up again. The amount is tiny when you talking short term it is almost insignificant.

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In the early days there was 100% inflation, that's why he got the numbers he did.

Now, if you power up you get 7% inflation. So if you power up 1000 steem, and then power down a year later, you get 1070 steem.

Hi sr i would like to ask u when what is more cost effective.. buying steem power or buying upvotes to get the steempower... and the nathanmars comment its very reasonable.

thank you for that info

i don`t plan to switch rom steem power to steem any time soon

Hi Mark,

Firstly, let me just say i witness voted for you. Second, I think you forgot to mentioned to the noobs and those who came after hf16/17/18 or something when the inflation was much-much more than 9.5% a year (think the 100% inflation during the 1st year, and especially during the high Steem payout during the early mining and early witness days)

In the next 2 years, new Steemian powering up today won't even see 14.9% increase in vest in their Steem, much less 149%.

Note, since last end of Oct, when I finally got my account approved. i saw vest go from 480 to 490, that's only 2+%

Please share some reasonable FOMO/expectation.... like SMT drawing in maybe 2-3 hot ICO out of 20-30 new token by Dec 2019 (who know's anything is possible). I'm just saying....please give realistic info, not skewed data.

I hope this did not offend, but I think it's important to clarify.

On the whole, I think this is a good post, it brings awareness to Vest, and to gaining Steem via Vesting no matter the modest amount it earns.

ok, thanks for keep our enthusiasm up during probably the worst Steem user attrition and slump of new comers.

We're trying to grow serious comedy here on Steemit, we believe it will bring in real talent, and increase retention for the next half a million users coming on to the blockchain.

please drop by and judge for yourself if this is worth supporting #comedyopenmic and our community account and newly launch witness server @comedyopenmic.

Hi Mark,

Firstly, let me just say i witness voted for you. Second, forgot to mentioned to the noobs and those who came after hf16/17/18 or something when the inflation was much-much more than 9.5% a year (think the 50-100% inflation during the mining days and the )

In the next 2 years, new Steemian powering today won't even see 14.9% increase in vest in their Steem, much less 149%.

Note, in the last 4-5 months. i saw vest go from 480 to 490, that's only 2+%

I suppose please share some reasonable FOMO.... like SMT drawing in maybe 2-3 solid ICO out of 20-30 new token in Dec 2018 (who know's it's possible). I'm just saying....please give realistic info.

ok? as you were, thanks for keep our enthusiasm up.

1 Million Vests per STEEM

I think you meant
STEEM per 1 Million Vests

(Upvoted for visibility)

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Thanks reversed it so it makes more sense.

Well if my buying steem And powering up means I purchased influence and part of s company. Why on earth are the 100s of people crying about what I do with my vest 🤔?

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Every action will piss off a certain part of the community, it is unavoidable. For example, this post got hate because of how I worded it.

It isn't the same as buying part of a company but it was the best way I could find to make it understandable. There are many that believe it is your stake to use as you please, there are many that believe you should give away everything away.

For the most part, everything is fine unless it is someone else doing it.

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It seems like we have entered a never ending discussion. Even with the changes that are made, if you don’t invest you will still be lagging behind.

I don’t understand how your post could receive hate, it made sense.

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I am a firm believer that users can wield their stake however they see fit. However most people who use this justification for excessive self voting, vote selling, etc. only believe in “the code is law” when it comes to upvoting. If they are downvoted into oblivion they’ll never acknowledge it as a valid use of vests. They are often the first and loudest to cry about how others have chosen to use their shares.
I’m overall happy with the mechanics of the system, I’d like to see more of a cultural shift that does free people to use their vests as desired, including a lot more flagging!

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Self votes and abusive flaggging should viewed the same but no one talks about that.

I learned a lot, thank you for sharing this knowledge!
2arqno.jpg

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Wow! This is educating and very well explained without need for big grammar.

I know better know. Thanks...the.more reason am holding my Steem Power.

Thanks once again

You are already my witness and i am proud of it, thank you for your help in developing Steemit

Sir @themarkymark,you can earn money by investing in your post with a great person but you must remember that many people here should comment on your post and vote on their behalf. In my opinion

Now here is where people get lost. Vests are stupidly confusing and not very well understood. When you power up and buy "STEEM power" you are buying vests. Vests represent how much ownership you have on the platform.

I must get some more of these vests you speak of...

VERY GOOD INFORMATIVE POST ON STEEM RELATED THAT WILL HELP STEEM LOVERS EVENTUALL Y

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THANKS, IT IS VERY GOOD OF YOU TO SAY THAT.

WHY ARE WE YELLING?

I totally agree with you, its definitely all about the long run, cheers, s. error

Great post. The definitions and explanations are simplified for a complex system especially for a newbie like me. I have upvoted your post, followed you and am going to read the previous post linked in this article. Thank you!

I feel like a mad scientist any time I try to explain to people the differences between STEEM, SBD and Steem Power. However, you did a concise job at it. I'll just tell people in the future to go read this post haha.

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same here...i might as well re-steem.

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Thanks, check out the post I linked at the beginning of the post that explains them all.

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I don't thing people are buying million steem powers. Explain in thousand or hundreds...

I never understood what Vests were until now thanks @themarkymark. Upvoted, followed and resteemed...

I can understand the need for STEEM and STEEM Power. I don't understand the need for SBD. I always convert SBD to STEEM.

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SBD was designed for enabling commerce. The ability to sell a product or service for $10 and know 10 SBD will be roughly the same value. With the broken peg, this no longer applies and SBD has no point while the peg is broken.

The rate of return for holding STEEM in SP is not as high as it used to be. From December 2016 to January 2018, it only increased by 10 million STEEM per mvests from 475 to 485. This is a gain of 2% for that approximately one year period. STEEM per mvests went up a lot faster in the early days of STEEM.
https://steemit.com/steemdev/@jesta/historical-rates-for-vests-and-steem#@hpauric/re-jesta-historical-rates-for-vests-and-steem-20180104t103529498z

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That sounds about right like I said above it isn't nearly as much but it is still a lot higher than institutional interest rates. Add in the fact you can vote and curate with it, it's like printing money.

Very well put, thank you for the knowledge. Great post and very useful to all. Definitely a post that needs to resteemed.....

Excellent post, thanks for sharing i´m learning more each day.

hello friend steemias.saya really enjoy the shadow that you give like picture and meme your post really very extraordinary and very bermamfaat for me and also for friend of syeemian all amiin hopefully your post progressively good to forward. i really like it and i will share to all steemit colleagues all. thanks for the post.

No lo sabía. He enseñado que si enciendes 1000 STEEM obtienes la misma cantidad cuando te apagas ,asi se aprende mucho mas gracias por compartir este conocimiento con los usuarios steermians gracias.

Already many days,my account have no change.not power increasing or nothing.many things i need to learn.thanks by the way.

You got a 17.79% upvote from @postpromoter courtesy of @ipromote!

Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!

i dont know that
But with spend time in this platform it let us learn many things day by day

Thanks for sharing this

interesting

really useful

I've never seen Arnold this ripped.

Anyway, thanks for putting this out @themarkymark - about STEEM alright, not Arnold. 😂

Thank you for sharing! Its all new to me.

Thanks! Im new on steemit and this article really helped me.

Tonight I just found out what is Vests.

Previously I was very curious when opening steemd.com Vests there writing there. Apparently Vests are Steem Power.

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Vests are not STEEM Power, vests are how many shares in the STEEM platform you own. STEEM Power is just a human-friendly number to show you how much STEEM your vests are worth. It's not a currency, it isn't anything but a nice way of displaying how much vests you own.

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Oh, my God
means I misunderstood

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And you are saying that number of steem in your wallet will increase over time if you do nothing but let it sit in "vest"?

Would not that also require the price of steem to rise just like it did before? Will the amount of vest you own only increase if you earn or buy more?
Honestly if you just held just steem without powering up its the same thing isn't it? Then you do not have to wait 14 weeks to cash out while it is going up and down. As well the 14 weeks "power down" has changed before so it could change again?

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Holding liquid STEEM and powering up would not be the same thing. Buying VESTS (aka powering up) will yield more STEEM when you start to power down at a future date. Holding liquid STEEM will always remain the same amount they just may be worth more or less on the market.

I doubt the powering down duration will change again.

Buying steem to power up from your anlysis is a good investment. Steemit is growing and the interest will keep increasing.

what a good post i like to read it

Thanks a lot for this easy explanation for a - before I read this- absolute mysterious word here on Steem :P good work and you'll get a vote for witness :)

very well explained and easy to understand congratulations for their contribution to the community

this is clear and simple explanation, I can't wait to have that "steem power" so I can buy vest though I'm a beginner ... I love steemit

I've been long wondering about this and your post finally makes it clear for me moving forward. Thank you for that and for anyone looking to connect with some one here on steem follow me @antoniowestley

#liked #Shared

Hi @themarkymark

reallly very nice post ,,,i like centent...thank you

Very good explanation.

Wow, thank you so much for this. I finally found someone who clearly explained me what I wanted to know. Upvote & Follow

Please if you want check my article about STEEM TA: https://steemit.com/steem/@patrik.malinsky/steem-technical-analysis-may-24th-maybe-a-strong-buying-opportunity

you said it rite but this very same thing helped me alot. The difference between steem and steem dollar is hard but this becomes profit if you fully know it :)

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I also hope you can pay attention to me. Here I will write my life experience. Thank you!

I'm seeing this with my delegations. A customer is leasing 50K SP from me, but that has slowly crept up over the last six months.
Since he's actually leasing Mvests, he's getting almost 50,500SP worth currently.

Wow. In my 2 months on this platform, I never understood this
Thank you for this

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There are people who have been here for 1-2 years and don't. I wouldn't beat yourself up.

you help me to resolve my pproblem that I was very much confused. you have written a great topic. I have learned a lot of things. thank you soo much for the help.

thank you so much for presenting things so beautifully

well done, you helped this noob understand more about the steemit platform. thank you for a great post.

Thank you for explaining vest in layman's terms, I have a better grasp on the term now thanks to you! :)

Arnold will be prouder if he has bought some Steem 2 years ago.

I do want to get more SP (Vests) but as a content creator I feel discouraged because even though I bring shitload of ACTUAL PEOPLE to steemit/steem blockchain, I do not get any thanks form my work like an upvote from established steemit users with high VP because they are busy circle jerking or selling their vote...
And trust me I am awesome content creator.

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That is the result of an elevated SBD price.

I voted you for witness.

I wrote a similar post yesterday for a community of moms I’m working with. Maybe I’ll just direct them to your blog ;)

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Hodling STEEM Power makes STEEM has been resteemed by @resteemmuse

@themarkymark Clear as mud! Thanx :)

One thing I understand the same with you, but one more thing arnol one of my fans as well in your Steemit

Short.
Simple.
Easy to understand.
Direct to the point.
No yada yada.

Very well written 👌the way you explained is so clear and it is so easy to understand. Thank you for this post!

Funny 😂

Well explained. I got the point. Thanks for the post. @themarkymark

This was clear and concise. I am currently investing all my payouts into SP. This is a platform worth some of my income too. Thanks. Resteeming

que bien gracia por esta información

thank you @themarkymark for putting up to post to explain the different terminologies used in the Steem community.
Honestly, I have not pay attention to the term "VEST" since I joined Steemit 4 months ago. The reason is our wallet has not shown this terminology. As such, I normally read Steem, Steem Power and Steem Dollar ( sbd )
Although I have seen the word VEST in the steemd.com website, it never comes across my mind that "vest" is the real power
I am so glad to have read your post
Cheers

Great post, being a minnow, I am learning a few things every single day. Special thanks to all of you that take your time to support minnows like me.

I think one other factor to be considered was the inflated prices of SBD, which would give about 3:1 ratio versus steem. This resulted to a lot of generated vests, by powering up, diluting its price. Unless we can see SBD going back to $1, we might see a slow growth on the value of our vests, therefore SP "generation" decreasing.

great post dear @themarkymark
but i have a question in my mind.I would like to ask everybody a question- Is it worth to hold Steem tokens?

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Yes especially powered up

Yes..

Very educational, I've learned a lot from this post that I did not know, thank you for this!

good post..thanks for sharing this content

Nice post, thanks

i appreciate

in my wallet 2 days ago there was $0.88 in my estimated account value and now it is $0.86? why?

Good information. It's useful

That means with time it progresses, and we get its true value a long term investment

I have see my Vests grow over time, I was curious about this. I see my delegations in place slowing gaining from when I originally sent them. I guess if I watched close I would notice the same thing with my SP. makes me even more excited about powering up!

Does SBD stand for Stupid Bullshit Dollar?

Posted using Partiko Android

I am not the least bit market oriented...if you took your steem and converted it into steem power your steem power can fluctuate with the market, it can go up and or it can go down, right? If it just sits as steem it stays stable but doesn't earn anything sitting there, would that be correct? If I took my steem and power it into steem power then I am risking losing it...Just some days I feel like that episode of Happy Days when Fonzie was selling ice cream from one of those peddle carts and he said, "I just get up to ninety miles an hour and have to stop for some kid waving a dime"...I get up to fifty, it goes down to thirty five, I get up to sixty five and it goes down to forty seven, I get up to eighty five and it goes down to sixty three. (account balance) ...then I am like man this is like a roller coaster and I'll be reading shit till the cows come home before I ever get to a hundred bucks.

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if you took your steem and converted it into steem power your steem power can fluctuate with the market, it can go up and or it can go down, right?

No, because when you power up you lose your STEEM, you buy VESTS. These have no market value and are not tradable. When you power down you convert it to STEEM again and that is affected by the market.

VESTS to STEEM (and STEEM to VESTS) exchange rate is not influenced by the market.

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I've never powered down so much as a dime so how does my account lose value?

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I've never powered down so much as a dime so how does my account lose value?

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Because the price of STEEM has fallen recently

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So when the price of steem falls that only has a effect on your account balance but it does not have a effect on the amount of steem power/vest?

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It has an effect on your "Estimated Account Value" the quantity of tokens (STEEM/SBD) and VESTS (aka SP) does not change.

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Okay, it's becoming more clear now. So if I understand right having steem is tokens that just sit there, they don't earn any money, they are just there. If you take that and power up it then starts earning you more because you have more power in your votes to bring a higher percentage of return on your share of curation? If that is correct does one want to leave any amount of steem sitting without powering it up?

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Holding STEEM is holding X coins that go up or down in value but the quantity never changes (unless you add more or remove some yourself).

Powering upconverts STEEM to VESTS at the current exchange rate, when you power down that exchange rate will be higher (more expensive) and thus power down to more STEEM but at a couple % per year.

Example Time.

Powering up 10,000 STEEM about 3 months ago would have given you 20,445,716 VESTS.

Powering down that 10,000 STEEM today would have given you 10,052 STEEM in return.

The exchange rate of 1 STEEM to 1 Million Vests was 489.1 about 3 months ago or so, today it is 491.69.

Now if you held 10,000 STEEM in your account as liquid funds for 3 months, you would have 10,000 STEEM today. The only change is what 10,000 STEEM is worth today vs 3 months ago, but you didn't gain or lose any STEEM it is just valued differently.

If that is correct does one want to leave any amount of steem sitting without powering it up?

Everyone has different needs and goals, so you may need to pay a mortgage and need to pull some liquid STEEM out, you may want to buy another token. There are real-life reasons to power down and hold liquid STEEM.

From an efficiency point of view, powering up is the most efficient use of STEEM until you are ready to sell it as it will gain "interest" and can be voted with.

Altough the increase in Steem/vest is close to the inflation rate, so in the long run, you dont increase the value, but dont lose It either.

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It took me ages to figure out Steem Power vs. liquid Steem when I was new. You're probably causing a lot of lightbulb moments here!

If SBD is removed and only use Steem as payout, won't Steem run out in the near future? Or they will mint another 200 plus million just like Tether is doing.

I am still new to Steemit, so posts helping me how this page works and operates are very helpful.

Much appreciated.

Great post you got there about the steem power @themarkymark this means I have to work very hard to get steem power here!

Now I understand.

Well yes I do have faced this kind of question as well .There are many who are still having confusion on this matter.

Thanks for the detailed info.

Im New here in steemit i hope this type of post will help me to learn more about steemit.If possible please help me out by your valuable suggestions friends.

Im new here in steemit i hop this type of post will help me n help the new users of steemit.I hope lot of experts who know deeply about steemit will help me please upvote me help me grow my career in steemit.

great informative article.

So the conclusion is more the steem power more the Steem you will be getting

post yang keren

Excellent post on Steem and Steemit as a whole. Followed and resteemed.