Why You Should Check Your "Potential Growth" Indicator In Steem.Supply. Hint: It May Make You Rich
First of all, please excuse the clickbait, I couldn't refrain myself. Second, this post is really about a financial indicator from the steem.supply website, and third, yes, under certain circumstances, closely paying attention to it can significantly increase your Return of Investment (ROI) from this platform. And by investment I understand mainly writing.
What Is The "Potential Growth" Indicator?
In top left corner of the Steem.supply website, there as a short piece of text about the total worth of an account and, next to it, another one about potential growth.
Total worth of an account means everything that the user holds in his 3 "drawers": liquid Steem, Steem Backed Dollars (SBD) and Steem Power.
The potential growth means how much the account will grow, in percentages, after the user receives the rewards. Please be aware that we're talking about potential growth, as well as about potential rewards. There's nothing sure about those rewards, until the blockchain actually distributes them.
So, why is this so important? Let's do some use cases.
A Minnow Use Case
I have to tell you that @teodora, who's info is pictured in the screenshot below, gave me the idea for this post, after telling me the other day how addictive is the app, but how it also lacks in "tidbits". So I thought to write a post (or maybe a series of posts) to clarify the importance of the data in steem.supply, in human language.
As you can see, @teodora, as a minnow, has a total worth value of $361 and a potential growth of 1.24%. This percent is per week, by the way.
Let's do a few calculations:
53 (weeks) x 0.0124 = 0.6572. Or, put in percentages: 6.572%.
That's @teodora per annum return (or APR). It's very hard to find a bank with this potential interest, most banks are giving between 2% and 3% interest at your deposits. And be aware you have to block those deposits in order to get that interest.
In layman terms, it means that @teodora can have, at the end of the year:
$385.52
(for all te compound calculations I'm using this site: thecalculatorsite.com)
Not bad. Anyway, much, much better than keeping that amount in a bank.
A Reasonably Large Dolphin Use Case
Let's move a bit upward. @timcliff is a reasonable large dolphin, meaning his account value is in the tens of thousands. By the way, @timcliff is also a witness and a very active community member, many usability improvements of the platform are coming from his pull requests on Github.
Tim has an account worth of $37,605 and a potential growth of 6.06% per week.
Let's see how this is per year:
53 (weeks) x 0.0606 = 3.2118. Or, in percentages: 32.118%. Ups.
Let's see with how much Tim will end up after one year:
$51,840.71
Double ups. Not bad. Not bad at all.
A Whale Use Case
The third use case it's a whale, or an account measured in hundreds of thousands. @good-karma is one of the most active Steemit members, the author and maintainer of the mobile app, eSteem, and a long time top 19 witness.
@good-karma has a an account worth of $142,577 and a potential growth of 4.35%.
Let's do the math again:
53 (weeks) x 0.0435 = 2.3055. Or, in percentages: 23.055%. Interesting.
Let's see how much this will be in one year, if the potential growth indicator remains the same:
$179,533.07
I rest my case.
Please be aware that, in case of big dolphins and whales, most of the time there are significant expenses involved. If we're talking about a top 19 witness, there's quite a special infrastructure needed (at least one backup witness and very good machines / internet connections) and if we're talking about developing and maintaining large apps, like the mobile app, then we're talking about top coders, special testing infrastructure and so on.
These accounts are pretty much full time jobs / small startups.
Also, this doesn't take into account any variation of the STEEM currency price.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
https://steemit.com/~witnesses
Excellent tool.
One little suggestion (that most of the Steemit tools are missing) - autocomplete on the input box for username; preferably as a separate module that all of the other tools can benefit from =)
Keep up the good work!
Thanks for the feedback, the readahead function is implemented in steemdb.com if I'm not wrong. I'll write this down for future releases.
You're correct, steemdb.com does seem to have the typeahead feature - thanks for pointing the tool out to me; it contains a lot of information and is very useful.
@jesta knows his stuff :) Many great tools from him: steemstats, chainBB...
Steem will have huge growth this year and especially in 2018... My main goal is to become a whale, help me out peeps :-)
Voted! I scratched your back...😜
HAHA :-)
Just gave you may vote, hope it helps :))
Like wise @Dragoroua ... ill be watching more of your awesome content :-)
Hmmm.... I'll have to check it out! Thanks @dragosroua!
you're welcome :)
Upvote this if you are a Minnow But want to be a Whale
*trying to figure out clickbait 😄
something like that :)
Ha ha ha
So your yearly calculation is assuming our weekly earnings will grow by roughly the same percentage consistently, yes?
I'm at 14.17%! Whoop!
And @papa-pepper you're kill'n it.
Yeap, exactly :)
Steem.supply provides useful information to keep track of my APR and apply it to my plans whether it be in business or personal expenses. It's awesome sir :)
May I ask what are the factors considered in the potential growth? The higher the stored money, the higher is the potential growth percentage?
It's a combination of both, but the most important is, in my opinion, to keep a constant growth rate.
Okay sir :) I copy that.
Thank you!
Thank your for the case study. I believe that the growth percent will require more probabilistic inputs. This case is when I post with the same regularity and receive only that amount on steem on a post. If I become more and more involved than the value of the post will get paid higher my rank will grow and the potential growth will not have a liniar growth. What do you think?
Yes, that's true. What I wrote is the worst case scenario. It's easy to get pumped up if / when we take into account all the "good stuff" that may happen. I like to keep it cool.
But yes, the potential is way, way bigger. :)
Potential growth calculations in this space are tenuous at best. If steem dropped back to .10 USD tomorrow and never recovered.. would the potential really be greater than a USD at 3% - what about 10 years from now? I know where that USD would be..
Interesting calculation - always enjoy your posts!
Thanks for the nice words. I know about the potential implications of variations of Steem price, hence the disclaimer at the end ;)
If you're calculations are correct however.. BIG growth.
Very helpful yet again sir @dragosroua ! I just recently bookmarked steem.supply as one of 7 related bookmarks - trying to learn as much about each as possible to maximize my investment potential. Thank you for this info, I will keep an eye as I press toward dolphin-hood!
Thank you for providing this tool. It will help everyone in finding out the yield they will get on their investment.