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RE: VEST Rewards Are More Important Than Post Price
Interesting, can you explain in simple terms how Vests provide value?? As opposed to SD or Steem. Would be appreciated.
Interesting, can you explain in simple terms how Vests provide value?? As opposed to SD or Steem. Would be appreciated.
Hey @themagus, my pleasure.
VESTS are the value your steem wallet really has "under the hood". You can view that here https://steemd.com/@themagus and see the relationship between VESTS and STEEM here: https://steemd.com/distribution
If you see the number of your Steem Power going up in your wallet, that just means you're getting a portion of the newly minted STEEM according to your VEST holdings. Steem Stats shows this as well https://steemstats.com/#/ if you go to Accounts -> Steem Power. You can see how much your VESTS earn you in terms of Steem Power.
Steem Power can be seen as vested shares in the Steemit economy. STEEM (liquid steem), on the other hand, is getting inflated all the time with creation of new Steem by the mining process. If you hold STEEM, your value will go down substantially due to inflation. SBD are certificates of debt against STEEM. You can convert them (which takes 7 days) as a smart contract to get $1 of STEEM. SBD are great as a stable currency as long as the dollar peg is maintained. Unfortunately, with the dropping price of Steem, it's becoming harder and harder to maintain that peg. Also, with each SBD created, it essentially creates double the value which can further drive down the price unless there is enough demand to purchase up all that value.
In addition, holding Steem Power (i.e. VESTS), you can earn even more rewards for curation as your votes will have more influence. The downside is, they are not liquid. It takes 7 days to power down and even then you only get one 104th of your holdings out as liquid STEEM.
I hope that's helpful. Please ask any further clarifying questions you may have. Also, check out the #price channel on steemit.chat. I learn a lot there every day. There are no stupid questions and this is really complicated stuff. I've been trying for months to wrap my head around it all, and I'm still just scratching the surface.
Great answer...big thanks @lukestokes. I will try wrap my brain around those links you gave. I too am here for the long haul and only take Steempower for my posts, my latest earning 0.00c ......lol...methinks that is steempower-less.
You're welcome! Heheh. Keep it up, add value, and you'll improve. :)