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RE: 5 Reasons Why You Should Power Up Your SteemDollars (SMD) to SteemPower (SP)
I somewhat disagree, I think it's perfectly fine to cash out your Steem Dollars. I mean, the whole point of this platform is that people get paid for their content, but if you don't cash out then the value of your steem or SP is not much different than Reddit karma.
The approach I take is that whatever I earn in steem power I keep in steem power and whatever I earn in steem dollars, I cash out. This way you are still building up SP for long term but still get some short term monetary reward that you can lock in right away without the long term risk, in case this system/platform isn't sustainable.
Maybe, my point was not clear enough. Of course it's ok to cash out, if you hit the jackpot. Imagine you were lucky and received 10,000 SMD for your post. Half of it turns already automatically to SP, which is very smart. But why not put addition 2,000 SMD in SP, if you can afford that. In two years you will get it back. But in the meantime you can have more voting power to reward content that you like and comitting yourself to Steemit, which helps to make sure, that Steemit is still workin in 1, 2, 5 or 10 years and that Steem will become a respected cryptocurrecy. With my post I wanted to remind the Steemers, that they helping themself and Steemit at all, when they power up more Steem.
The problem is you are making the assumption that you'll be able to cash it out in 2 years, and while I'm hopeful for this platform, it has yet to proven itself a sustainable for long term.
It's a matter of risk. For some people, getting thousands in steem dollars is a lot of money and might not be in a financial position to lock it up for two years, it'd make more sense for them to get the guranteed payout.
I'm not convinced yet about Steem enough to buy lot of SteemPower with my fiat money. But I would convert all my Posting Rewards to it, because I hope to make more cash with content at Steemit in the future. And thats why I try to find a rational way to prove that Steem has an inner worth. What about the worth of the social news site Steemit.com? You can measure it (unique visitors, pageviews). Couldnt this backing the worth of all the Steem?