Earn an 8% Passive Income Return on Steemit!
View this post on Hive: Earn an 8% Passive Income Return on Steemit!
I've moved to Hive, along with most other people, following Justin Sun's takeover of Steem in the Spring of 2020. I believe hive is a lot more decentralised than Steem!
Those are very interesting numbers you came up with. It's certainly a different way of looking at it.
Hi @revisesociology, I'm not sure I've fully understood this token distribution system and I must admit I didn't take the time yet to dig into. Doesn't the 9.5% (- 0.5% since one year passed already) inflation rate mean that you need at least (9.0-(9.0*0.15))= 7.65% APR from curation (or author rewards) to break even?
I think I get what you're driving at, but my model assumes that Steem maintains its dollar value in the long term, and the continual printing of more steem doesn't devalue it.
Assuming that, then as I see it we're all getting around 1.4% APR by more steem being 'printed'. My own account gains about 0.003 steem every hour.
Of course, if you're with the 'steem to the moon' brigade your long term rewards will be even greater!
I wasn't thinking about the Dollar value, but more about the Steem per Vest value. I thought that the inflation would reduce that rate, so that the same amount of Vests would be less SP in a year from now. But I just had a look into historical
steem_per_mvestrates in the blockchain and this value is actually rising. The same number of Vests will be more SP in a year. So I guess you are right! Sorry for the confusion.Well you've certainly given me something to explore a bit more - I had just assumed there was a straightforward constant relationship between Vests and SP.
TBH my research into the economics of steem got as far as Vests and that was the point at which I put that whole project onto the 'do later' list!
I have a much cruder way of verifying the interest rate - I just print screen my SP and then again 24 hours later, and times by 365 - it pretty much works out at exactly 9*15%. I THINK that's right - I've got two indicators telling me the same thing at least.
Aren't MVESTs to Steem just what the more complex reputation figure is to the whole 50/60/ 70 thing - I mean isn't SP just a simplified/ translated version of Vests - so it's effectively the same thing?
Also (now my brain's kicked in) isn't the steem per MVEST rate affected by powering down etc. Of course that might affect the return rate, but it's not 'locked in' that's just yet another flexible variable that can affect the value of the platform.
Of course all of this might be moot if the platform collapses a few months after it picks up another of couple of Hajins/ Rancheros, which I think is pretty much inevitable.
I think I also have more questions than answers now... Power-downs is an aspect I haven't though of. Thanks a lot for making me aware that I haven't understood Steem yet! :)
I should really take the time to dig into this topic.
The dysfunctional search function doesn't help!
You can sometimes get better search results by googling. I've put whatever I am searching for plus steem or steemit.
Thanks for putting this together! I just put together a trail of my own on Steemvoter yesterday after noticing a certain pattern in who votes for me at what time with what % lol- didn’t know it existed til then and that it was so easy!
8% is really great- especially not for doing anything! This doesn’t even account the fact that your SP will likely grow through the year perhaps even gaining you more passive return on curation awards. Awesome! Thanks!
Hey Karl, thanks for this. It's the same exact thing I've been telling everyone in the meet ups I am hosting. I started accumulating at under a Dollar. With the appreciation alone, that initial investment is more than 4x now. Of course anything can happen with the price, but whatever happens I will continue to accumulate via curation and posting.
I will look into it, but I hope this is not another scam.
It's just basic maths, assuming I've understood everything correctly. I don't understand why those two people have upvoted your comment without explaining themselves either?!
It is more than basic math. It is about whether or not promises will be delivered.
In fairness the whole calculation does depend on price stability.
Is it your suspucion that steemit's going to collapse soon because of too many anarcho capitalists using it for short term wealth extraction?
Are those who look at it as a medium to long term investment just a bunch a mugs?
Yes, and the fact that I have been on here long enough to see many pimping the system. I am not saying that you are the same. I just proceed with caution and I advise others to do so. Nothing personal.
For the record (and obviously you can check it) I'm in this for the long haul personally! I wish the algorthms were tweaked to discourage short term extractivism.
I guess the only downside is the higher volatility of Steem compared to the dollar, euro, pound, etc. However, I do expect Steem to hold its value into the future and possibly even become significantly more valuable. I do think its a good investment, and the Steem power in the site is certainly generating a nice percentage return.
True... the 8.2% is relative to the amount vested, and so the dollar return is dependent on the value of steem. The whole 8.2% figure assumes an absolutely stable steem to dollar ratio ---- according to most people on here, this is actually incredibly pessimistic as most people think it will rise significantly.
Thanks for sharing! Followed 😁
I agree that the ridiculously low rates of interest banks give in savings cannot compare with your returns on Steemit once you get into it. Many are now saying that we're in the golden age of crypto currency right now, with new coins coming all the time. But not all of them will last. Steem seems more stable in the long run, & so does Ripple and LiteCoin.
True - Steem seems to have more utility than all of the rest.
That is why I love Steemit - earning a bit extra even if you don't post.
Interesting. I don't really understand the rewards from curation. I shall have to investigate further.
Is there a cost to steemvoter? I signed up and I think it said there was a fee for autovoting more then 3 people.
It depends on yer steempower. At around 1300 I can auto-vote 50 people (or 'set 50 rules' as it says). I've only actually set half that, and got it nicely sorted so my VP stays somewhere between 80-99%.
Ok good to know. Thanks for the info!