STEEMPOWER - Why this is a good investment
My aim is to explain why STEEM POWER is a good investment and I encourage everyone to convert STEEM into STEEM power
After h19, I have been watching my upvote from 0 to 0.4 and I am so happy and can't wait to tell my friends. On the other hands, a simple upvote from a user in STEEMIT (> 10000 SP) would gives a payout that already exceed my general payout of a stories, that get me thinking how much exactly can I earn to become one of them.
Thank you for changing formula, I don't need to deal with exponential or stuff like that and since it is linear rewarding system, I can easily use my primary school maths to work out how much I can earn with 10000 SP.
If 600 SP = 0.4 /upvote
Then $/upvote = 10000/600 * 0.4 = 6.67 USD
Out of the 6.67 USD, you will get 70% as reward = 4.67 USD
Then everyday, you can vote yourself 10 times with full power = 46.7 USD.
To get 10000 SP,
STEEM / BTC = 0.00077339
BTC / USD = 2,672.8
STEEM / USD = 2.06
So you need around 20,671 to get 10000 SP.
This works out about 0.23% and this represents about 10bps (0.1%) more than what you can get to loan your BTC in Poloniex and around 82.4% annual return.
But the above figure is likely to be an underestimated because:
- You can post your stories to get extra payout and that with your higher power, your reward will likely be going up too.
- Every 7 days, you get payout and half of them will go to SP, assuming you keep half the cash and half SP (in finance term, it calls compounding), the return will go up to 200%!!! So your initial 20k investment would become 40k, and would be more if you even compound the STEEM dollar into SP.
As I know a lot of people now rush into invest a mining rig, what exactly the return there?
I head the AMD 580 is now cost around 400USD per card, so I assume one need to pay around USD 3000 for a 6 cards GPU rig. The profit is around 20 dollars a day, so the return per day is 0.67%, but do consider that,
- ETH difficulty is rising in a very fast rate
- There will be stop time with your rig mean there might be some downtime which reduces the profit
- It is hard to scale your mining business, considering you need plumber, you need rent a place and also air conditioning.
So why everyone invest mining rig but not many people invest in SP?
Thank you for your detail explaination @wilkinshui! I understand more of the steem power after reading this. Indeed, together with the Hf 19 has been launched, steem power is even more worth to be invested than before, it is a good time to invest if you would like to enhance your influence power.
Yes, only when you have more power, the earning will be meaningful in steem, when it seems weird, this actually make sense. Because steem power is like an equity share of a company, the more steem power you have and the more committed you are to the site, and therefore you are expected to get paid more.
Have fun steeming.
Good! Thank you for your calculation!
Thanks linuslee, how is everything, my friend? But do bear in mind that even the number looks good, there is risk say hf20 implementation that it may hit the payout again. But steemit is still small so i believe the upside is good.
Let get this together :)
Even the price of STEEM stays flat is good enough for a decent return
Yes, the analysis assumes steem price stay flat which you can double the money if you use a 50/50 default payout mode. And with steem numbers of members rising so fast, it might be hard to keep steem price so low in the future. If steem price goes up, which means the potential return is even higher.
It's nice to use comparison to give your argument. Even though I have very little voting power now, I still voted for you lol Yeah Steem Power is a really good investment, you do your maths!!
Thanks bro, this is the idea, i am glad they change the formula making the calculation so simply that even i can do it. Thank you for your upvoting and yes it is very hard to perserve the voting power nowaday as i am still resting to get up as well:)
Very good read wilkinshui and alot of usefull info to take in. Im new and curious how everything works. I get having SP is good but do I have to earn it? Can I acquire it quickly?
Can I buy steem send it here and trade for it? I want to get more familiar with steem asap. Any and all tips are appreciated.
Thank you for your comment, yes you have to earn from posting stories, commenting other posts or curation reward where you upvote others and there are a split left for you. You earn it faster by posting quality post or by participating really active in steemit. Do follow the whales such that you know the development to take advantage.
You can also buy steem and then turn into steem power.
Good post I like that
Super inspiring, everyone should know that
Thank you for your support carine.
Sweet post :) I converted some the other day, but it takes 3 days to convert is this correct? Sorry this is my first attemp to convert and just wanted to make sure.
No. The first thing when you get steem dollar, in current conversion rate, you should exchange your steem dollar to steem via market and then you can power up you steem directly. This could take just few minutes to do. If you convert steem dollar to steem internally, it takes 3 days and also way more expensive.
Hope this help:)
Thanks buddy I will do it via the market next attempt :) noob fail lol
No worries as it happens to me too :)
So, what percentage should reinvest in Steem Power and for how long?
My assumption assume 50% of the payout reinvest to steem power like the default option and compound for 365 days. But one thing might be happening is that what if hf20 does not favor this strategy? But this is similar to mining increase the difficulty.
When is hf20 going to hit? Maybe do the 50% reinvestment until a few days before?
Can you convert Steem Power back?
When we just have hf19, so i dont think there will be adjustment that soon as it takes time to discuss, get the consensus and code and everything. But it surely look like the investment is good considering steemit only has 200k+ members.
Yes, it takes 13 weeks to convert the steem power back to steem. Every week it will give you 1/13.
Good to know about the 1/13 conversion back.
I haven't been on long enough to get anything yet, but I will try it out.
Yes you will get 1/13 a week when you are powering down so to me the waiting time is reasonable. It used to be something like 2 years instead.
Yes, i guess just be really active in steemit, to follow more whales such that we get the latest development, those really helps you to get some sp faster.