Although the value of Steem in dollars is much less then its all time high of around 8$, its important to remember you are being paid in Steem or earning rewards paid in Steem not dollars here on Steemit!
This is very important because if you were being paid 8$ a post and now we’re being paid 25 cents a post, you should definitely put your time and effort elsewhere. But your not being paid in dollars and cents. Your being paid in Steem.
This is a tremendously important distinction.
Suppose for the sake of illustration that you were paid in gold for your work here on the Steemit platform. And suppose for the sake of argument you were paid on ounce a day, which was worth 100$. Then one day you woke up and the price of gold had fallen to 75$. Then 10 days later it had fallen to 10$. When you went to published articles here on Steemit you still were paid one ounce of gold, but you noticed there was less competition and if you put in extra effort you could make 6 or 7 ounces of gold for the same articles. But if you sold it, you would only get 10$ per ounce instead of the 100$ you got six months before. You read the newspapers and some people suggested abandoning gold and others said hold onto it, the price will rise again.
Now ask yourself a question. Would you still work for gold?
I know some of you will say, well of course I would work for gold because it’s an appreciating asset. I know it will be worth more one day.
Others are probably reading this and saying this is a ridiculous comparison. Steem is not gold!
You are right Steem is not gold, but Steem is an appreciating asset. Steem is similar in many ways to gold, diamonds, stocks and other investments in that its value generally increases over time versus the dollar or other currency.
Inflation. All currency experiences an erosion in its value over time. That’s why most retirement funds don’t just save money in the bank, they buy investments. Things which appreciate in value. A dollar is a value losing investment as its value shrinks steadily over time. I think that the best thing to do with dollars is buy goods with it as soon as you get it! And as much as possible choose things which are appreciating assets.
Obviously you need to buy food and shelter. But beyond that I think you should convert it from fiat to asset. If your saving your dollars in the bank your are probably losing money or value every day unless your savings institution is a rare one paying you an interest rate equal to or greater then inflation.
Think about it.
I really feel you should keep only enough fiat for your immediate and short term needs and the rest converted to appreciating assets like investments of varying liquidity. Steem is one of my assets of choice for holding value.
I know it’s hard to consider Steem or Stocks or many other investment vehicle as an appreciating asset in a bear market. But you need to look at historical patterns not just today or even this year. Cryptocurrency, stocks, gold, diamonds all appreciate longterm. Early adopters of Bitcoin are still ahead despite the drop in price. We are earning an appreciating asset which can only be to our advantage in the longterm. That’s my opinion.
I certainly implore you to do your own research to see if the facts support my statements. Think about what a dollar bought when you were younger and what it buys now. Think about the crisis in Venezuela where slow yearly Erosian of a currencies value was suddenly accelerated and the currency became severely devalued and the price of goods skyrocketed.
Think about the interest rate crisis last year where banks weren’t paying any interest and many were considering negative interest rates. Currencies were losing value so fast the banks were actually thinking of charging the customers with money in the bank in savings accounts interest to hold their savings! An amazing concept if you think about it.
Remember knowledge is power, power creates wealth and wealth permits freedom.
Free yourself 👨💻
✍🏼 by Shortsegments
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