LIQUID STEEM vs STEEM POWER
Following yesterdays successful and seamless HARD FORK 19 I thought it would be a great idea to share this slide with you and hopefully help those new to STEEMIT understand what is likely to happen with the price of STEEM.
Regular Readers of my Blog will know that I always like to break things down into an easy to understand explanation as I know how frustrating it can be at times to try and get your head around the nuts and bolts of the system.
To keep things very simple, think of two types of coins: "Liquid Coins" and "Locked In Coins".
- Liquid Coins - Spend today
- Locked In Coins - Spend in the future
STEEM and SBD are effectively "Liquid Coins" that you can draw out today and spend.
STEEM POWER is effectively the same, but you have locked it away and cannot spend it until sometime in the future.
What Hard Fork 19 has done by giving you more voting rewards on your STEEM POWER has effectively INCENTIVISED you to "Lock In" your coins..!!
This incentive to “Lock In” your coins in STEEM POWER has the potential to drive the price of STEEM up as there will now be less "Liquid Coins" available to buy..!!
This lack of availability of "Liquid Coins" will most like provide the catalyst to drive the price of STEEM higher..!!
For me the timing of Hard Fork 19 has been practically impeccable and faultless as it has tied in PERFECTLY with the uptake in New Users..!!
Think about it this way, we have just increased the number of Users at the same time as incentivising people to take their "Liquid Coins" off the market.
If this is not a stroke of genius, nothing is..!!
Thanks for reading.
Stephen
I am all about getting the liquid steem out and off the markets and in to that special long love power-time capsule know as, steem power 😝
I appreciate your post, insights!
Resteemed this one and passing the word to
💪Power up & Steem on👍
Thanks for all you do Stephen 🙏
AWESOME..!! Thank you for the Resteem and support. Stephen
Shared on twitter. Stephen
Shared on LinkedIn. Stephen
This is indeed interesting. At first I did not understand what this hard fork talk was all about but now I start to get it. I resteemed. :)
AWESOME..!! Thank you. Stephen
Thanks for the explanation. Maybe also point out that your voting power will run out now faster (4 x faster), but recovery is not faster.
Ive noticed this yes. So i have to be careful with voting :)
Can you give us more details on how to manage our votes more effectively?
Yes I would like this explained a little bit more as well. I heard 10 votes at 100% power per day. How does that work?
Well said. I'm very impressed by this HF19.
Interesting explenation :) i will stop my power down because of this. Let's all work together to push the price up :)
I completely agree.
Another compelling reason is also in the fundementals of the Steem creation mechanism and Sbd debt %
For quite a long period in the past, rewards were liquid steem and SP because of SBD debt load. This provided extra selling pressure on the price due to all the liquid steem rewards.
Now, rewards are SP and SBD. No liquid steem and reduced sell pressure. Sbd debt % is basically non-existant so steemit is sustainable.
Things are looking very good right now. Im powering up
I was thinking the same thing. I converted nearly all my Steem to Steem Power a week ago knowing that i would not be selling it and that I am using Steemit for fun, not to maximize profits for a specific post. If more people tie up their Steem in Steem Power then benefits all.
Also, in an interview with the two founders - they stated that Steem Power is less diluted than Steem as new tokens are created. So it's better for you in the long run to have more SP. I believe the more SP you have the more value your get for posts as well.
You have explained the difference between Liquid Coins &
Locked In Coins in such a beautiful and simple way , now i can very well understand how the the price of Steem is going to rise when you lock the liquid coins.
I have already done so and with the hf19 payout it means i can lock up more steem power and this is dream come true moment for me as i always think i join late. Apparently it is just the beginning of everything and members will hit 1m very soon!
I'm new here on steemit and I'm glad a read your post. This makes a lot of sense. Great post I look forward to reading more from you. I will follow you.
Good post. The future is in steem and powering up, win win for all
I feel the same @stepenkendal ! I also power up my account with every chance I get. I even "steal" from my Poloniex account little bits of BTC to power up here, but I'm just a minnow for now. With the HF19 however, I will start getting more and more STEEM POWER and save it. I've always looked at things in the long run, so I guess all of this fits me like a glove.
Nice post as always Stephen, you've got my full support! Keep it up :)
Steem future looks promising
awesome analysis @stephenkendal thx..
I originally purchased only Steem Power. The only Steem and SBD I have are from interacting on Steemit.
Thanks for putting things into perspective now. I thought the new HF would leave to more liquid coins but from what you say the new HF seems like a great thing!
I totally agree, my Steemit voting power went from 0.08 for a new post to 2.20 after the hard fork.
Now, THAT is a major change.
Actually an increase of 27,5 times!
Any advice about internal trading of steem using paypal?
Great advice for building value. Would you say the best thing for us new Steemians to do would be convert everything into SP. Should we choose our payout for posts to be 50-50 or just go all out for SP?
Im new to Steem , but i understand that holding SP is more profitable in the long run than selling it right now. But .. are you saying HF19 if giving more value to the low power users in exchange for more concentration of SP within the system, I mean the steem blockchain ?
I feel like I am a bit late to the Party too but thankful that I am not in the wave of millions yet to come. Should I be locking in, keeping liquid or selling my rewards?
As a steemit newbie, this post was just what I needed. You have a skills to break things down in an easy and understandable manor. Thank you @stephenkendal....resteemed
Yes hf19 is a total success and is a big step forward. I will be locking up some Steem power today! Expecting a big influx of new users soon.
I agree with the timing and the key to the long term success of the platform (and hopefully in turn users final balance) is to lock in your Steem as Steem Power.
Save today and benefit further down the line!
Thanks simplifies that for me.. NEW USER <------- LOL @dprophet
Excellent advice, I will be putting all my rewards into SP!
@stephenkendal muy buena la info. Hracias. Update, y reesteem.
https://steemit.com/@jhelbich
Now steemit is more fair. It values good content, no matter who wrote that. It is now agnostic regarding who wrote.
agreed and re-steemed
Firstly , thanks for the Hardfork19 and its update.Its really cheerful moment for newbie like us...Happy Hardfork19...Cheers..I followed you in twitter as well..
Thanks for this explanation. I've only been hear a week, so this was very useful.
Thanks for the clear break down. I plan on locking in all my steem for a long time as I want my influence to grow and I think the value of steem will continue to grow. I can't imagine what it might look like 5 yrs. down the road.
We should prepare for a big wave of new users after this HF. And as @blueorgy was writing in his article, the price of STEEM is not down because of the bigger rewards.
I had not thought about it in that way before. It makes perfect sense. If people start locking their coins up there will be less liquid coins available in the market and the demand and supply forces come into effect. The price goes up and we essentially get more value out of less coins! This is potentially a cycle that can drive the price of Steem up for a long time into the future.
True!!
Great post. Thanks for explaining it so well...
great info. invest, people!
Resteemed and upvoted. This is good information. I will definitely convert any SBD or STEEM to Steem Power.
Except for a few SBD I have pulled out to pay a bill or two, I have pretty much been powering up everything since I started here... like you, I'm here for the long (5+ years) haul. Even though it seemed very bleak at the time, I'm very grateful that I kept publishing regularly even when Steem went below 10 cents.