If you have over 2500 SP, you can retire*
*If steem stays around $3-4
My account is generating about 1.4 STEEM an hour. Doesn't sound like much does it?
It works out at current exchange rates, to be about $5 an hour.
Which doesnt sound like much does it?
I mean a 40 hour week at $5 an hour is only $200.
But wait a second... STEEM POWER works a 168 hour week. That's $840 untaxed USD a week.
Then you realise, not only are you making more than you do at work... It's compounding...
God I hope this keeps up, the future looks good!
I still don't quite understand whether it is better off to invest idle BTC that I have on hand into Steem or SteemPower, no matter how many of the guides on the topic here I read.
Care to share your wisdom? ^_^
Diversify your investment and never ever sell it. Put what you're comfortable with into STEEM (say 20%) and hold it.
I think the future for cryptocurrency is so bright, it's hard to lose.
Just try to avoid cashing out, I think the world is starting to notice bitcoin wasn't a one hit wonder.
Almost precisely the plan that I was going to execute, both as test of
how the whole system here works whilst maintaining a sort of safety-net
for any funds I do have in any form (STEEM, SP, &/or SMD).
You probably shouldn't, is the honest answer. You can't expect every single STEEM to stay at $3-4 forever.
That would be the equivalent of the marketcap of STEEM growing 100% year over year. Which means next year the market cap will be like 700M, then 1.4B, 2.8B, 5.6B, 11.2B, 22.4B, 44.8B, 89.6B, 179.2B, 358.4B in 10 years...
and in 20 years, STEEM's marketcap has to be 367 TRILLION DOLLARS to maintain the $3-4 dollars per steem. Laughable.
In actuality, holding steem power means you're LOSING 10% every year. Of course, if the market cap increases by more than 10%, you still end up with a net gain. But it doesn't compound like people make it seem.
every five years the number of steem goes back to the original amount correct.
You are forgetting that every three years the total number of steem is reverse split 10:1.
That doesn't change what I'm saying in the least. Your 1 steem becomes 0.1 steem. It's still worth the same; getting less and less as time goes on (assuming the marketcap stays the same)
It does because you are assuming the market cap grows exponentally when it very much does not. Steem is not exponentially inflationary.
Hmmm....
Does this mean that we can mitigate that quantitative loss
by just buying/selling just before it's occurrence?
Thanks,obfuscate-meCan you explain that a little more?
Every three years the total number of steem is reduced and you get back 1 steem for every 10. While the total valuation remains the same. So if you had $300 worth of steem worth 1 dollar pre split you would have steems worth $10 after the split. Just less numbers of them. For more description of this check out the white paper.
Fantastic explanation of how the system works; Thank you so much!
On a slightly unrelated note/question though:
Should SMD be converted into STEEM or SP?
Thanks,obfuscate-meInvesting in SteemPower will tie up your BTC for a while. I THINK it'll take you 2 years to get them back out if you invest them in SteemPower. It's like a CD, potentially more valuable but less liquid. Buying Steem will keep you liquid and allow you to profit from price fluctuations. SteemPower is more powerful but also more of an investment in the concept and only if you want to reap your rewards years down the line. At least that's my understanding as of now.
Thank you so much for the explanation, accompanied by a real-life and accurate analogy, along with your own personal advisory and reasoning :)
An all-around marvelous answer to all of my questions!
Thanks Again,obfuscate-meIf you can handle having your equity or 'money' tied up for two years Steem Power is the place to be. Steem gets diluted constantly as new Steem is 'printed' out of thin air, so hold Steem costs you. Steem Power effectively earns interest and is a much better way to store/grow whatever wealth/value you have created. My $0.02.
You can liquidate steem, not steem power. SD take a couple years to withdrawal, I believe.
Sd does? what you convert it to steem and withdraw it now. what do you mean a couple years? you must of meant steep power, and then you get it all out in 2 years in equal payments every month for those 2 years.
You should consider the point where the amount of interest and growth on SP is such that taking 1% of your steem power per week would still not decrease it. If you do that you can use the Power Down feature and I believe it converts 1% of your SP per week into Steem Dollars :) I could be wrong, as I don't have nearly enough SP to consider testing the theory. I see a lot of the people with a lot of steem power are powering down.
I'm powering down to see how the whole process works.
Post an update with your experience. That is one of the mystery places.
This is my plan also, but the "Transfers are temporarily disabled" bubble
on my screen is preventing me from testing this...
That is a BIG IF. It will be interesting to see how Steem trades as more exchanges add it and as the community grows. Too many factors at play to make any educated guesses.
That big "IF" is what concerns me about this entire system where
it seems like everyone is making substantial profits, regardless of
what form they are holding/held in.
I think your "Too many factors at play" remark is exactly the answer here.
I wonder if bigger powers are at play. I think this one might have a little government backing.
Help give my account some value, please!