Steemit, possibly the best savings account ever devised.

in steemit •  last year

Steemit is going to be for many users, their first introduction to cryptocurrency and for some, it will be the only cryptocurrency they’ll ever deal with. So knowing these facts, how can everyday people see Steemit as a benefit.

Steemit-big.png

Not everyone likes to trade or make investments, but everyone likes to save and have those savings bear fruit. I want to discuss how Steemit & Steem Power can be a very valuable savings alternative for the average person over more traditional savings products.

We live in an era of cheap money and easy credit. What I mean by “cheap” is we have runaway central banks printing fiat into oblivion, inflating the money supply and allowing the “thief in the night”, otherwise known as inflation, to decrease the value of your hard earned fiat you carry in your pocket. You can try to save, but the banks don’t need your money anymore, they have access to all the cheap money they want. You ever wonder why the interest rates on savings accounts and CDs are in the tank? This is why, they simply don’t need your savings anymore. Just thank fractional reserve banking and your local central bank printing press. Great job guys, you’re doing a bang up job. If you’re not sure what fractional reserve banking is, click here. Mike Maloney gives the best explanation I’ve ever seen and explains quite a few other very important concepts in layman’s terms. Even if you do put money into a savings account or CD, the interest rate is so abysmal, inflation and taxes make it a negative investment. Simply put, you lose money.

So what are we to do? Let me introduce you to Steemit and more important, Steem Power.

I’m going to outline several examples to show you the power of Steem Power and how it can be of great benefit to anyone who wishes to use it.

Example 1: Your Savings Account

The average savings account today pays a whopping 0.06 APY. For examples sake, we’re going to use a $3,000 investment and a 1 year investment time frame.

savings.JPG

After 1 year, your $3,000 is going to earn you $1.80. Not exactly the returns you were expecting I imagine. Why? Because they don’t need your money. Ask yourself this one question and let it sink in. Why on earth, would a bank not need your money? It flies in the face of everything that is normal and anyone can understand there is something very wrong with what is going on today.

Example 2: Your CD (Certificate of Deposit)

Another very popular savings product. Currently the average CD rate for a 1 year CD is 0.27%. Using are same $3,000 and 1 year this is what we get.

cd.JPG

Your $3,000 after 1 year has earned you $8.10. One word is all it takes to sum this up, pitiful.

Here’s a chart showing you just how much the interest rates for CDs have fallen over the years.

cdrate.JPG

Here’s a chart illustrating the M2 money supply given this same time frame.

fred.JPG

They say a picture is worth a thousand words. These 2 tell this story pretty well.

So on to:
Example 3: Steemit Account

Same as before, $3,000 saved for 1 year with full balance in Steem Power.

As of this writing, $3,000 in Steem Power should give you about a $0.60 upvote. Now saving your money in Steem Power will require some effort, which I’ll explain. There are some people who simply don’t like to post, and never will submit a story. That’s perfectly fine, and the beauty of Steemit, the community is designed for everyone. But let’s say you make 5 comments per day.(this is the effort thing I was talking about) They can be anything. Find 5 authors you like or find 5 posts on subject matter you enjoy, and make 5 comments with an upvote every day for each of them.

After HF 19, you get 10 - 100% upvotes per day. You make 5 upvotes for authors or posts you enjoy while also making a comment. You’ll earn curation rewards for doing so. You then upvote your 5 comments you make daily. Each upvote is worth $0.60. You’re giving $3 to the community and $3 to yourself daily. Basically you can look at it like a daily dividend. So let’s very quickly look at our $3,000 investment after a year.

$3,000 investment

$3 (dividend daily)

365 days X $3 daily = $1,095 per year

That’s equals 36.5% APY

This is not taking into account curation rewards and the price of Steem rising in value.

Now you’re beating inflation and will gladly pay your taxes. You’re still getting ahead in the game.

I wrote a post last week very similar to this illustrating the incredible opportunity that Steem Power represents, and this post also emphasizes that fact. This post came about b/c of several friends I’ve talked to about Steemit. All of them said the same thing, “I really like the concept, but I don’t want to blog or make posts.”

That is fine. Steemit is not just for bloggers, it’s for everybody. It takes a village to raise a child. If a member feels like they have to post to benefit from Steemit, and it’s something they don’t want to do, what will happen? They will sign up, not engage and eventually quit or simply won’t sign up at all. They will suffer by losing out on the many benefits of Steemit and the community suffers by becoming smaller and less influential. I have many more friends that read social media but aren’t actually active on social media than friends who are actively engaged, and I imagine we all fall into that same boat for the most part. The more users Steemit has, the more influential it becomes. It’s as simple as that. It doesn’t matter how great the idea is, without users, it is worthless.

Some community members might frown on having users vote for their own comments, but I believe that is a personal decision. I personally believe you absolutely should. If you’re making comments and voting on posts, you’re making contributions to the community and you’re active and adding value.

I think as early adopters it’s our duty to spread the word and let the world know about Steemit. The more creative we can become in showing others how it can benefit them, the more value it will have. If we can show normal, everyday people how Steemit and cryptocurrency can be of benefit to them in their day to day lives, watch out, Steemit could explode into something that truly revolutionizes the world. At the end of the day, that’s what we all want. If you can solve enough people’s problems, after awhile, you won’t have any problems of your own, and that’s how I see Steemit, it can solve a helluva lot of problems. Have a great day!!

(Disclaimer: This is by no means to be used as financial advice. I am an amateur investor and these views are my opinions only.)

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Useful Websites for Steemit Newcomers

https://steemd.com
https://Steemnow.com
https://steemdollar.com
https://steemwhales.com

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Good article and a solid strategy!

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Thank you. Hope this can show how Steemit can help everybody.!

I feel it is very important to read how to understand Steemit. There is really a lot going on here. Good job! Love the references and the list of links! I will definitely be looking at all this again. Thanks so much!

Please follow, I have some really cool posts planned and hope to raise the bar for myself personally and professionally as I learn how to best become a Steemian!

: )

#payitforward

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Thank you and really glad you found this helpful!

Great article! Great strategy! Re blogged!

One of the coolest things about cryptocurrency is that it teaches us about money. Since I've gotten involved in cryptocurrency I look at money, and saving completely different now. I've learned a lot about accumulating wealth, and how to grow savings. Steemit is a great tool for many to learn how the world of cryptocurrency works. Exciting times :) Great article!

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Couldn't agree more. With Steemit being attached to Steem, it brings financial discussion into the equation organically. There's so much practical financial knowledge you learn just by osmosis from being part of the community.

Solid Post Brother. Step by step outline why this is a sound opportunity and model.

It really is to the benefit of everyone.

You like creating posts - cool
You like making comments cool.
You like upvoting posts - cool
You prefer to just read posts and maybe upvote - cool
You like to upvote if you like and reshare...resteem - cool

Really is for anybody and everybody's individual preferences and tastes.

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Thanks brother! Steemit is for everyone and can help solve a lot of problems. I think as time goes on, more creativity will be implemented to help show how it can help billions of people gain more freedom in their lives.

Agree wholeheartedly with you @orionschariot. Opening a Steemit account was my first step, then learned enough about cryptocurrencies to invest a little in Bitcoin so I could buy some Steem, which I powered up. It simply makes sense.
This very well could be "the best savings account ever devised". Certainly has the potential to far exceed rates of return I have been earning in the fiat world.
I also appreciate your explanation and rationale for upvoting one's own comments. Makes sense, too...
Thank you. Upvoted and Re-Steeming...

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Thank you very much! Steemit I feel will be the entry point for many into cryptocurrency. The learning tools available within the community are incredible and will lower the learning curve dramatically for new users. Great comment!

Certainly, Steemit is a much better opportunity than most conventional forms of investing, even beyond "savings." Whereas I am not a fan of upvoting our own comments (for reasons not related to "earning" but the the long term health and sustainability of Steemit) it's certainly an excellent strategy to publish, comment, curate and power up with your earnings. And I happen to be a 20-year blogger, so being here is getting rewarded for something I love doing, and would be doing anyway... even without a reward.

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Great points all around. Steemit can solve so many problems. We're just starting to scratch the surface on it's capabilities. Creativity will play a big part going forward as Steemit continues to grow and evolve.

I really think it is, I like the fact you have to wait if you want to "cash out". I have a problem with impulsive spending sometimes.

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I like that aspect too. I refer to it as the "emotion buster". I heard that phrase at an investing seminar several years back. Emotion is what kills most people in savings/investing b/c they make rash decisions. Steem Power protects you from that and also protects huge swings in the price of Steem. There's a level of stability with Steemit b/c of that.

great perspective @orionschariot, some people are intimidated by the thought of blogging daily. You show that there is value for all users as long as they contribute to the betterment of the community.

going to watch all those Mike Maloney videos now!

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Very informative videos. No fluff, just facts. Steemit could/should be for everyone. Imagine the price of Steem with 1 billion users. If Steemit grows the right way, it can do it.

So, thank you again @orionschariot. Because of your post, I finally took the time to figure out how to move some Steem I bought a few weeks back into my account. It's just a little bitty bit compared to others but it's a start! I moved it all into Steem Power. Resteemed.

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Congratulations! Big things have very small beginnings! :)

I think this article is extremely useful and I am going to resteem it. Before I do, I have a question. For those investing in SteemPower, and since this is in Beta, do you think it would be safe to say that any balances we currently have would transfer if and when it goes to another level?

Your examples were very clear and concise. I like the illustrations and simple explanations. The choice is obvious. Steemit.com all the way!

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You will always control your balance. With each hard fork we have been going to another "level" and we are now at hf 19. I'm not sure when the beta tag will be removed.

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Copy that. Thanks for the info @kus-knee.

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Thank you for the kinds words! :) @kus-knee is spot on. Your balance is your balance, that will not change.

I like your perspective. It shows how the platform really can help anybody. Even with little activity.

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Thank you! Steemit is revolutionary in so many ways, it truly can help everyone. I believe there will be a day when we can trade Steem directly for fiat bypassing bitcoin. When that happens, I feel Steemit will grow exponentially.

Post, collect, power-up, retire.

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That's sounds like a formula for success right there.

Steemit is good option to earn cryptocurrency and there is good interset on saving steem power. Nice post!!

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Thank you! There's some rumblings that interest for SBDs might be in the future also. Pretty sweet if it proves to be true.

Very good explanation.

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Thank you!

cryptos was always the heaven of saving ! :) you just need to do a very good research prior to that !

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Research is key. If you fail to prepare, you prepare to fail.

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Research is the half key patience is the other half ! ;)

Fiat currencies have become so cheap and have such a low value that they're thinking of basically giving them away for free using the Universal Basic Income model. :)

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Great comment! Check out what's going on in Hawaii right now regarding this very subject.

Great post. Good explanation of how steemit works. For now, i'm not yet into posting, but am really very active in commenting on posts that suits my liking, upvoting and also resteeming.

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Thank you! That's what's great about Steemit. You can do what's best for you and still contribute to the community and reap the rewards. Thanks for posting this!

I hadn't really thought of what interest rate a Steemit account would give exactly, thanks for illustrating!

Well done article, thank you for doing it..

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Very welcome. Glad you enjoyed it!

Getting rewards from being n active participant in Steemit, however you chose to, that is incredible, these rewards are actually worth something (not like a FB 'like' or a Twitter 'like'.
Steemit also allows you to enter the world of other cyber currencies too if you wish to. I was able to enter into the world of Bitcoin, Ethereum, Dash, and Litecoin in very small amounts also. and it was not using paper money it was using a few power downs and transferring it via blocktrades.us
My advice diversify a little and keep a lot in STEEM, it's going to have a much bigger value sooner than later.

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Great post! Steemit I feel will be the bridge that introduces other coins to millions of people. Every single user brings value to the community, and all share in the rewards, unlike FB or Twitter. Here, we all help each other. Pretty damn cool.

Yea this is why I've been getting people on the steem train. It has so much to offer.

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Amen! It's got something of value for everybody.

That is the best explanation yet of how to use Steemit. Anyone looking to talk to friends about joining needs to share this post, upvoted and resteemed!

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Thanks for the kind words! You bring up a great point about talking to friends. Why is getting friends to join so hard? It's free, lol. If you can get them to open their minds a bit, Steemit can solve a lot of problems. The mind is like a parachute, it works best when it's open.

Thank you tor sharing your insights. People should be made aware of the current monetary systems in play. Yesterday I watched "the big short" with my girlfriend and it reminded me how big banks and government try to control the normal people and try to enslave them in their system.

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Great post man and I love that movie! It should be required watching for everyone on the planet. Steemit and block chain is the antidote. The more people who board the boat, the quicker we can set sail for a better way of life.

Good thinking food product. Thanks for making stemmit a good product. I rate this post $500. Weldone!

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Thank you!

Great info!
Fractional Reserve Banking is what happens when you save in a bank, it benefits the bank but not you.
Blessings to you!! Resteemed!!

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Thank you!! Amen! We're simply sheep to be continually sheared by the banks. Great comment!

So, it goes back to the old question: why does the (earned) money come from?

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If you're talking about Steemit, it comes from a 9% yearly inflation rate that is decreased by 0.5% yearly until there is 600 million Steem tokens and then there will never be no more made.

As far as fiat goes, it's just extra decimals they punch in their computers at the central banks. From nothing and backed by nothing.

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My understanding is the real return of steem = the return - 9%. If I have a lot of steem and don't do anything, then it likely to lose 9% this year. Is it correct?

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No, that's incorrect. Steem currently operates at a 9.5% inflation rate, meaning, 9.5% more Steem tokens will be created this year based off the current Steem tokens in circulation. For example, let's say there is $100 US dollars currently in circulation around the world. If we produced more US dollars at a 9.5% inflation rate this year, we would create an additional $9.50 of US dollars(9.5% of $100), now bringing the total to $109.50 US dollars. Steem tokens will continue to be created like this, decreasing the inflation rate by 0.5% yearly, so in 19 years, there will be no more Steem Tokens to be made.

You actually earn 2% interest by holding your Steem in Steem Power. Just another way you can accumulate Steem.

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the answer will shock you !!

good one.
I'm reposting it.
no upvote...sorry...my vote power is depleted.

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No problem Everitt. I'm glad you liked it!! Keep Steeming and get that Steem Dream seaworthy!

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In two or three days my vote power should be replenished...THEN I can vote.

Great post. Have a nice day

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Thank you! You too!

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Good deal. I think mining can be an excellent long term in investment. I have some Genesis contracts. It always goes back to the argument of which is better, mining or buying and holding. I think that answer depends on the individual. Thanks for the comment!

Very nice well thought out and informative post. As a person working in the financial world I can agree with a lot of your information. Keep up the good work! I'm going to follow you, and if you're interested in seeing some posts on finance, investing, and wealth creation feel free to check out my blog! Most of my informative posts have a section at the bottom detailing what I hope to post in my blog.

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Thank you! Good deal, I'll check it out.

Yes, I agree. Putting your money in the bank is over. And also putting all your money into Steem is not wise as well. It's best to have a diversified cryptocurrency portfolio. Have some Gold,Silver, Bitcoin, Ethereum, Steem, Dash, and dear I say it cough Ripple!!! The concept is to never store your eggs in one basket.

eggs-in-one-basket.jpg

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Agree. Do your due diligence and diversify into what you know. As much as I hate it, Ripple has some big time backing from the banks, I'm holding some long term.

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Yes, me too. I hated ripple at first but now I'm holding it long term. When it becomes life changing money, that's when I will sell!

Wow! Thank you so much for putting in words what I dared to hope. You rock!

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Thank you for the kind words!! :)

Yeah, Steem is really wonderful. Steemit is not just for bloggers, it is for everybody. it takes a village to raise a child! We all really should own a steemit account.

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Agreed! This is the precisely the message we should be promoting.

Congratulations @orionschariot! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

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It's eye-opening when you spell it out, in plain numbers, just like that. Thanks for doing the work here. Upvoted, ReSteemed.

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