As of a few hours ago, @blocktrades has re-enabled Bitcoin <-> SteemUSD conversions.
If you were holding on to bitcoin (or #ethereum, or any other cryptocurrency) and would like to set some profits aside, you should be looking at SteemUSD.
Best Interest Rate in Town
As banks worldwide struggle to offer interest rates for deposits (consider yourself lucky if you get even a measly 1% on a USD deposit), securing your funds on the steem blockchain becomes even more attractive.
Where else will you be paid 10% interest anually?
The Magic of Compound Interest
10% is a pretty good rate.
If you were to set aside $1000 as starting capital, and every month for ten years invest $500, you would have $103k by the end of it, $60k of it from interest alone.
Don't believe the numbers? See for yourself!
Conclusions
If you believe in the continued success of the steemit platform, you could do worse than profiting 10% per year ,USD-denominated, simply for parking your funds on steemit.
You will find no better deal anywhere else.
To convert your cryptocurrency to SteemUSD, simply visit the blocktrades website, after having converted your cryptocurrency to Bitcoin.
Once there, follow the easy instructions: select Bitcoin, Steem Dollar, pay attention to the maximum suggested deposit, enter your steemit account name, and finally send your bitcoin to the address that was generated for you.
It could not be simpler!
So every user can earn 10% on this Steem Dollar balance when he leaves the Steem Dollar on the Steem Blockchain, right?
That means we could see the Steem Wallet like a savings account and just transfer money to our mobile account when we want to spend the Steem Dollars. Sweet!
That's right. You make 10% interest. The other option is to buy steem, which seems to be making good charts figures on crypto exchanges. Steem is little more risky that steem dollar but still, steemit is a promising platform so far.
Yes - my previous post was precisely about that - holding STEEM and shooting for the moon, without risking the house and the kids.
The assumption there, of course, is that there are buyers on the other end for the Steem Dollar
Money is intended for trade, the illusions of interest have brought down many economies by giving interest by printing money that does not actually exist. Relying on a platform that suggests 10% earnings for just holding the currency is not a safe assumption while the platform is in beta and growing exponentially.
This rate could and will change as the platform works out its bugs and community growth rate. The best form of interest is to vest in your self, not a currency. Growing your money means taking risk and risk does not always produce a positive reward.
Holding in SBD is just one reward option. Not for everyone but great for some.
how true that statement is sokal and to karnal I do like the info you put forth here.
ME-TARZAN
Because merchants consider Steem USD = USD
Right! Got it! Thanks!
lol
If you can go back and forth between SteemUSD and USD, then it is only a hindrance that SteemUSD is not directly accepted.
It used to be the same with Bitcoin, and to a large extent still is. And yet Bitcoin still works.
Same situation with SteemUSD.
Firstly, I believe I read that that interest rate just marginally accounts for currency debasement.
Holding STEEM USD to expect these returns you are making huge assumptions on scalability and market cap. Plus there's a planned HF in 3 years, who'll know the result.
That's not true in Steem Dollars
i believe you have good investment knowledge. Can u share your views on this ?
https://steemit.com/steemit/@mjsteem/is-amway-a-good-option-for-business
Bitcoin is still the king. Look what happened after DAO hack. All altcoins down BTC strong up. There is too many altcoins. ETH was great hope, but dissapointed many people
Bitcoin is still king, agreed.
But you would be a fool to keep 100% in BTC - so, rather than sending the funds back to the legacy banking system, what this post promotes is the option to earn 10% USD interest on a fraction of your profits (it would be equally foolish to park 100% of your funds in steemit) in the mean time.
I have been parking profits in Bitshares using BitUSD and BitCNY for years, whenever I thought bitcoin might drop against fiat. This strategy has earned me a couple thousand over the last years.
What I suggest here is pretty much the same, except it even pays interest ..
I'm far from promoting fiat currencies, but what scares me is the fact that for every activity you imagine you need a dedicated crypto. This reminds me my pre-Euro honeymoon trip back in 1992. I had a wallet full of currencies. Had to plan every step ahead, where and how much to spend. Now I can travell with one universal currency Euro and spend it wherever I like it.
In this aspect ETH with smart contracts seemed promissing, but the DAO lesson was cruel
It is a good point you touch on. As you are probably aware, the Euro has lost about 15% of its purchasing power over the last few years against the US Dollar.
If you spend inside the Eurozone then it is not really noticeable, but try ordering from amazon.com and the difference will be felt.
A lot (most?) of crypto-currencies today are really more about speculating and testing technology out rather than offering something truly innovative.
There are a few exceptions, like #bitshares, which as you probably know by now, is where the technological base for steemit came from.
I will give you an example that strikes right at the core: I am originally from an Euro country and spend some time in the Eurozone every year.
While the people around here have been busy losing purchasing power every year, without realizing it, I have been busy loading on BitUSD in the bitshares ecosystem (and now SteemUSD), which allowed me to retain - and increase - my purchasing power.
I am not even talking about bitcoin here, which just turned out to be a great investment, and it is actually working reasonably well as a store of value as of late.
To me the true power is being able to turn something like SteemUSD, BitUSD or BTC to "real" currency on a whim, suiting my needs, on a timing of my choice.
While it is true that while in the Eurozone most of the economic activity I partake is euro-denominated, it is also equally true that I am to a large extent not exposed to the devaluation of the euro by being able to so easily go back and forth between different currencies.
This is something that most people today still do not realize is possible. I would like to aspire to slowly change that.
There are alternatives, and the future is here!
Euro was spoilt first by currency wars against USD and secondly by politics.
Bitcoin stayed pure and faithfull to the initial ideas (zero inflation, zero manipulation)
ETH is somwhere in between. We have a large premine owned by "some kind of FED" and we have a 'government" which organizes voting in order to change currency rules.
I agree, BTC is perhaps the most stable in price, but i still feel its rather a dinosaur. There is little innovation, arguments between the devs on increasing the blocksize, something that satoshi never intended to even be 1MB for this long. Just like facebook became larger than Myspace, the same could be said with something growing bigger than bitcoin itself...
One important point is that the 10% interest rate is not guaranteed to remain the same in the future. You can earn the 10% for now, but expecting it for 10 years is probably unrealistic.
I am big on Steem right now. Upvoted.
Steemit Crypto Mag | Issue #1 | 25 July 2016
https://steemit.com/money/@darknet/steemit-crypto-mag-or-issue-1-or-25-july-2016
Good job, I've translated the post into spanish:
https://steemit.com/spanish/@djmedina/piensas-vender-tus-bitcoins-por-moneda-fiat-por-que-mejor-no-compras-steemusd
Very interesting.. but maybe you should link back to the original and give credit to the author!
I love bitcoin
Yes, the interest payouts are way better than anything else you'll find - but one thing you didn't mention is that Steemit is still a risky startup/experiment. You can't earn outsized returns, in this case, 10% and think it's going to be as safe as something paying .01% - especially if it is liquid like SMD. Don't invest more than you can afford to lose.
Thanks for this guide
You are welcome!
Awesome, didn't know that steem dollar earned interest, great tip! Is the interest the same for steem power?
In a way, yes. But you are not guaranteed a dollar-adjusted return.
Also, it will take two years to fully recover your STEEM POWER in a liquid way.
If you keep it in SteemUSD, it earns you interest, and you can withdraw it at any time.
So, it depends on what you are looking for!
oh... I see, thank you!
are you talking about Steem Power ?
or Steem $? because only steem power does get the 90% payout?
or did i miss something
in case you missed my post, have a look here
https://steemit.com/steemit/@knozaki2015/my-upvote-was-worth-5-06-usd-25300-or-how-to-earn-the-maximum-curation-reward
I have little faith in the USD and personally thinking it will be worthless soon. If this happens will steem go down with it..??
USD is already worthless, it is based on over $18 Trillion of debt and growing, as far as steem going up or down against an already defunct USD is a speculative concept. Bitcoin has no debt, you either have it or you don't and as long as it is trade able among users, the value against other assets is somewhat irrelevant. Similar to holding several grams of gold and being able to trade with someone who wants to trade for your gold, that gold's value becomes worth what the trade is actually valued at between the trading partners and not necessarily what the global economy suggests.
A lot of this is incorrect, with the exception of the actual dollar amount of us debt. The us definitely has the largest debt, but not compared to it's population(its actually number 15 when you compare debt $/population). Per capita, uk, france, germany, luxumberg, the netherlands, etc all have higher debt. There are actually a ton of places that the debt, when compared to the population, is a much larger rate than the us. Dollar amounts of debt are only part of the equation. And your gold comment seems to be referring to bartering, which would be the same effect with rocks as gold. Whatever the item used to barter becomes the actual value of the item that is being traded for it.
I explain how Steemit will forever change social media, at Area 51.
https://steemit.com/area/@steve-mcclair/area-51-steemit-has-arrived#comments
I'm new to Steem and kind of have no clue what this all is, but I like the idea of transferring money to a savings - like account.
Can one buy steem dollar direct?
With the amount of steem constantly being created, there is de-valuation, inflation, and reverse splits essentially fractionizing your holdings and true values...that 10% guaranteed rate raises the red flag of skepticism.
only 42322$ interest and 61000$ investment
ME-TARZAN