My Thoughts On 100% Power Up Posts? Don't Do It, There Is A Better Way!
Introduction
I have been on this platform for roughly two weeks and have done fairly well, you can see my stats here https://steemworld.org/@entrepreneur916, and I have discovered something that I thought should be shared (especially for new users that are trying to grasp the concept of Steem, Steem Power (SP), and Steem Dollars (SBD)). I have labeled all regards to Steem, Steem Power, and Steem Dollar with their respective acronyms(Steem, SP, and SBD respectively) throughout the article for new users to identify them to avoid confusion and help retain it in memory. Cryptocurrency has confused all of us a time or two.
My Stance On The Platform As An Investment
Upon calculating payouts and experimenting with the "Default 50%/50%" and the "Power Up 100%" I noticed something interesting. First off, I would like to say I am in a "long" position" for Steemit, meaning that I will be investing heavily in the platform via Steem Power to earn influence and earn appreciation on the Steem Power. Steem Power in "vested" in the ecosystem and if I chose to withdraw, I will receive my investment in 13 equal payments per week that is subject to the exchange rates of Steem. I believe investing in Steem Power is an excellent opportunity and strengthens the Steemit ecosystem creating a better platform for all, so in no way am I condoning not reinvesting in the platform.
However I do believe that you should be smart with your money, especially when you are putting your time, passion, intelligence, or experience into the blockchain.
Evidence Of Skewed Rewards
Take my post on Cryptokitties. https://steemit.com/cryptokitties/@entrepreneur916/cryptokitties-a-short-starters-guide-plus-free-kitty-giveaway
Yes, you read that right. I did an article on digital "kitties", they're cute and profitable. It is what it is and I'm not ashamed.
Now this is a "Powered Up 100%" post, as indicated with the Steemit logo following the title of the article. Scroll down to the end of the article to view the whopping payout, click on the arrow and it will display past payout of $3.34 SBD. It will also indicate what went to the author and what went to curators.
Now, looking at my SteemWorld account, we can see what that Steem Dollar SBD amount was converted to Steem Power (SP). The $2.63 Steem Dollar (SBD) was converted for a mere $0.497 Steem Power (SP).
So this would indicate that $1.00 of Steem Power (SP) would be roughly $5.26 worth of Steem Dollars (SBD) correct? Not quite. Let's look at how these "currencies" were being traded roughly that time.
Steem (Steem Power/SP)
Steem Power was roughly trading at $6.41 USD or 0.00048283 BTC. While these conversions are irrelevant to this conversation, we do need benchmarks.
Steem Dollars (SBD)
Steem Dollars (SBD) was roughly trading at $5.71 or 0.00044551 BTC.
So this shows us that the market currently favors Steem (Steem Power/SP) over Steem Dollars (SBD), so we can expect that the blockchain will reward us in Steem that is not at a 1:1 ratio, since the market determines that Steem (Steem Power/SP) is more valuable, and therefore will not award the same. However, this does not explain the huge discrepency between my Steem Dollar (SBD) and my Steem Power (SP) reward from the aforementioned Cryptokitty post.
So lets look at the exchange at blockchain for Steemit at http://www.blocktrades.us
Note : These conversions were done with Steem Price of $5.70 USD and Steem Dollar (SBD) at $5.84. This applies to this topic due to the sheer difference in payout of Steem Power (SP) in relation to Steem Dollard (SBD).
At "Default 50%/50%" payout of $1.31 Steem Dollars (SBD), the conversion if I were to just buy Steem and "Power Up" would be:
Would have been much better to "Power Up' to just buy my Steem with my Steem Dollars (SBD) than to choose the 100% "Powered Up" option. Lets see what the equivalent of Steem Dollars (SBD) is to the 0.497 Steem Power (SP) we received:
So If we were just to make a total of $1.31 Steem Dollars (SBD) on this post, take away 25% for curators and divide by 2, we would reach our $0.51 Steem Dollars (SBD) net profit, in which we could convert into Steem Power (SP)
$1.31(.75)/2 = $0.51 SBD
Post To "Default" 50%/50% And Convert Your Steem Dollars (SBD) Into Steem Power (SP) To Maximize Your Rewards
With my experience, research, reward distribution and math, it is far more efficient to increase your Steem Power (SP) with your Steem Dollars (SBD) in the current environment. This may change, it may be a glitch, or it may be the direction the platform is heading with it's explosive growth.
Conclusion
Why is the reward system like this? I have a few ideas. First, there must be measures in the block-chain trying to compensate for the new members entering the site and trying to distribute the Steem Power (SP) accordingly, since it's distribution or power is controlled. Secondly, this might indicate that Steemit is wanting people to buy in more to obtain power, instead of earning and pulling out of the ecosystem.
If there is anyone out there that is more familiar of this subject, or sees something that I do not or has another take on this, please let me know. The last thing I want to do is to spread false information or degrade this amazing platform. @jerrybanfield, @boxmining, @brandonfrye, @reseller, @jamesc, you guys have been huge inspirations and mentors to me thus far, do you have any input on the subject or is there something I'm not seeing?
Respectfully yours,
Jacob A. Billett, M.B.A
CEO Billett Enterprises, Inc.
You have been victim of a @GrumpyCat flag because you or someone else sent money to buy votes from an irresponsible non-GrupyCompliant service.
@boomerang is acting irresponsibly by selling votes to people on their post in the last hours before payout. = 99.99% abuse rate.
To know what voting bot to use, refer to https://steembottracker.com/ and use those that have 3.5 day or less in the "Max Age" column.
To learn more: https://steemit.com/abuse/@grumpycat/non-gumpycompliant-vote-sellers-are-now-to-be-used-exclusively-to-profit-from-the-reward-pool
Good Afternoon @grumpycat. I hope you can take the time to clarify. I read your compliance paper, but it does not state if the actual bot vote will trigger the flag or the age of post. If I engage a bidbot such as @boomerang on a post younger than 3.5 days, will that still trigger the flag?
Yes it might, only going after the ending trail of reward abuse is not cost effective.
Thank you for the response. So it unknown if the post age triggers it. So if someone uses a bot that allows for older post (more than 3.5 days old) to promote a post of theirs that is younger than 3.5 days they are at risk of being flagged?
The individual is not abusing the bot per your outline in your complience paper.
I'm afraid to invest heavily in a bot to promote material such as a "New User Guide" or something of significance to get more exposure or "trend" with a bot you deem is abusive.
The reason I ask is that I contribute considerably to the comunity and investment in the platform and I want this thing to be succesful and not be abused as well. Just want to be sure I am in complience and not at risk of lising what I've been building. I want to work togsther and succesdfulky network to have steemit become mkre successful than we all can imagine.
Hope to hear from you, no doubt you deal with a large amount of comments.
Yes it might,
...while @boomerang is still selling votes past 3.5 days.
Ok. Thanks again for reply.
Last question.
I would like to do an article/interview on you for steemit. Just a couple of questions and I will do the rest.
Would you be willing or consent to do that? I can do one, but feel it would benefit the community more having your inputInstead of just throwing one together.
on https://steembottracker.com/#free
it shows 2.5 days so safe to use now?
Theoretically, yes. In actuality? No. grumpycat's idea isn't the worst (also not the best), but his execution is just terrible.
Lies! Give back what you have taken!
@grumpycat
Thank you for sharing. I'm new to this space too, and so far there is a divide between whether to power up, default to 50/50 and upvoting your own posts. I've been toying with all three in an attempt to determine where dividends may lie. It seems there are number of underlying strategies to master!
Using the 50/50 payout, then signing up for applications such as steemfollower and steemengine, you can magnify your own votes and those of your followers. That has been the best tactic for me so for. The referral links are in my signature.
Thank you. I'll certainly take a look at those.
I did a little article on steemfollower with a video link if you want to learn more. I will be doing one for steemengine soon.
I am barely a week old here today, and from my standout point, i think making a good content post will go a long way in building your audience
Also leaving nice and related comments on post would definitely attract followers to you
I think investing in steem power is the real power here on steemit because you will be able to increase your curators reward, also build and control alot of features at your disposal
You are absolutely correct, and I myself am investing heavily back into Steem Power. However, you get more Steem Power through 50/50 rewards, purchasing steem with it and then powering up with it from what I have experienced.
@originalworks
The @OriginalWorks bot has determined this post by @entrepreneur916 to be original material and upvoted it!
To call @OriginalWorks, simply reply to any post with @originalworks or !originalworks in your message!
@team-solutions
You got a 21.28% upvote from @steembloggers courtesy of @entrepreneur916!
This post has received a 30.88 % upvote from @boomerang thanks to: @entrepreneur916
How can you be successful if you are trying make a big bid while others affected by your selfish.
Good Morning! The reason this has been upvoted by a bot is to increase its visability so more people can see it and benefit from my research and be more successful. I sent money I worked hard to get to promote this, so I don't see how this is selfish.
This post is to help newer users.
Got it, my misunderstanding/
I am learning new things as we speak everyday on this platform. There is a lot to steemit.
@grumpycat has struck again
I am calling you to my cause against because you are a follower of myself or a victim of @grumpycat or both. Please review the newly published Grumpy Report and vote your conscience for posts on there to help them recoup their losses.
None of those posts are vetted. Please do the vetting yourselves. If you find there are any bad/offensive posts, please leave a comment for others.
Any upvotes on the Grumpy Report will be converted directly into STEEM power to use in votes to help people recoup losses from @grumpycat tyranny
Upvoted and following you! Please do the same !I am a victim of @grumpycat aswell