To Steem or to Redeem; That's the question
Users often ask my why i'm always withdrawing my earned steemdollars. The truth is that i trade them at Poloniex against STEEM. But why trade them trough Poloniex instead of powering up? Afterall, i'm the dude who wrote the article Why i'll become a whale, and you wont.
I truly believe that Steem is only starting to walk, just like a toddler. Growth is inevitable, and once people start embracing the blockchain technology that drives Steemit to create censorship free facebook-ish applications, the true beauty and strength of Steem will start to reveal. This is exactly the reason why i want to keep some of my STEEM on an external exchange. The inevitable fact, known as the bubble.
Just like Bitcoin encountered, STEEM will go trough a series of bubbles before reaching it's true value. I keep on powering up using my rewards Steemit gives me, and most of my earned dollars are sitting at Poloniex, converted to STEEM, waiting for the bubble to reach it's highest peak. So what exactly is this highest peak that would trigger me to sell some of my STEEM stash accumulated so far? Hard to tell. Here's what i learned:
In 2010, 2011 i've had thousands of bitcoins with a combined value of +/- 5000$. Early 2013, when Bitcoin reached about 100 dollars i believed to be a rich guy, selling most of my coins for a big fat paycheck, and some days later, markets dropped to +/- 50. Good move!
Now the rest is history. Like most of the early adopters, i've sold way to soon, but who could've expected bitcoin to ever reach well over 1000 dollars? Afterall, it was just some useless thing.
STEEM has a use, a purpose, a community, a developer. STEEM will change the way we operate our daily online tasks thanks to it's useable blockchain technology. STEEM is the thing! So unline my useless bitcoins back then, i wont sell them for pennies. But like all big players, copycats are on the lure. It won't take ages before a STEEM alternative clone pops out of nowhere, claiming to be the next big thing.
Whether STEEM stands or falls all depends on it's userbase. Are you cashing out the dollars you made to dissapear, or are you steeming them up into superpowers and stick with your community?
It seems you have the patience to allow steem currency to grow. Because this bubble has a truly potential to be big. But will take some time.
a) You already know about the hype. I'm referring to the steem tools. A lot of devs are creating apps/sites.
b) This is not only a community, it's about changing the game. I'm naive, right ? Look at the #anarchist #voluntaryism movement in the steemit these days. What people are joining. And look at their age. They are not 20 something. They are not naive.
c) the spectrum of developing communities from this is very large. Think about the so called naive people that want to help Africa and less fortunate populations. #charity.
d) And steem is not on TV/radio/Ads, etc. It's from mouth to mouth, on the internet. It's like a closed circuit Facebook for crypto guys.
So, due to the huge potential, why not powering up to allow you to grow quicker ? Is there a imminent danger to power down and escape the game ?
I'm not in the game. I'm just a commenter that plays. And like the game.
Cheers.
Unless you think that bubble is coming soon, I think you're making a big mistake exposing yourself to maximum dilution.
@tombstone Personally I think we "haven't seen anything yet" when it comes to steem. We're still in pre-school with this platform.
Agreed!
Exactly. Which is why I'm hinting to OP that he should be powered up!
This is sensible.
STEEM is designed with high inflation in mind. Right now liquidity is low so the price is very high. If you sell at the peak you could actually cash diversify and buy back at the bottom to get the best of both worlds.
Sadly most people don't use this kind of approach in crypto and get too attached to one or more currency.
We all want and believe STEEM can succeed but we can and should still act sensibly to maximise our profits and rewards.
I'm not sure I understand. You're saying you got into Bitcoin very early and sold far too early. Now you're into Steem early as well and are holding your Steem tokens on Poloniex so you can - uh - sell far too early again?
Why not hold them in your own wallet rather than trusting them in the hands of a third party? Exchanges get hacked fairly regularly so why not be sensible and take care of your coins yourself?
@piedpiper had a great suggestion, which was to power up all your earnings from rewards, but then at the same time power down some of your SP to cash out slowly over the next two years.
Steem it up.. not sure if steemit will end up like myspace.. but one thing is forsure it going to be fun ride for the next 24 months
Thanks for this article. Since I'm a total newbie to this whole crypto currency idea I enjoyed reading this. Maybe you could write an article about Poloniex and the process of converting from one to the other. Steem on my friend....
I'm starting to develop an addiction to powering up.
My wife on the other hand is already imagining what to buy with the steem dollars in her account.
I'm hoping a balance will be found between people wanting to invest on one side, and others trying to make a living out of it on the other side.
Becomes a hard choice. Diversify is always safe, but do we always want to play it safe? I have been struggling a bit with work but am still taking ever steemdollar earned and puttting it back into steempower. It's optimistic on the future of steemit for sure, but more importantly it becomes about having a voice and opinion that is heard. I may be foolish, I have a history of it. I have also often recognized what something can be before it ever hits there. So, I invest in the platform... and invest in my voice.
My 2 steem: Steem ON!