STEEM: Compounding Your Way To Big Results: Warren Buffet Would Be In Awe If He Understood!!!

in #steem7 years ago

Yesterday I wrote an article focusing upon how the Whale's and Orca's percentage of MVests dropped 2% in the last 90 days. While many felt this was not at a fast enough pace, we need to consider the fact this happened with a rather slow growth rate. There are still less than 700K total user accounts with between 50K-60K active daily. I expect these numbers will accelerate once people start joining at a faster pace.

That said, it seems a lot of newer people still fail to understand how building wealth works. STEEM is the ultimate wealth building system. There are many ways to grow your account. The best approach, in my opinion, is to use as many as possible.

Too many seem to think this is a great rich scheme. Well, I will tell you, it is. I know that baffles some of my regular readers but here is what I am saying. STEEM offers the opportunity to gain riches in a much faster period of time than any other medium I found (other than winning the lottery which we know how rare that is). The major point to keep in mind is that it is not going to happen in 30 or 60 days.

STEEM is a compounding system meaning that everything you do builds upon what went before. When you power up, the amount of SP you have grows. This increases your voting power which means your can now earn more SP off the same activity. While it is not a huge amount, it still is an increase.

Here is one key: do not compare your account to others!!!

It is easy to look at a someone with hundreds of thousands of SP and say, this is a scam. If you do that, you will certainly fail.

There is a time element to STEEM. It is true the path to success is shortened if one is in a position to buy STEEM. As an investment, I think STEEM is one of the best you can make. To start, the ROI is increased since you can use said STEEM to increase your voting power. Hence, you are paying yourself a larger return on each vote.

If one cannot buy STEEM, there are still lots of ways to increase your SP. As I repeatedly suggest, commenting is one of the best ways. Since I upvote most every comment made in my posts, I have regulars who get 12-14 votes a week from me. I am starting to notice that some who joined in the last month are starting to see their SP increase. They are at 200, 300, even 500 SP. That is a significant jump in a month.

While that might not seem like much compared to the Whales and Orcas, at almost $6 a token, that is $1,200-$3,000 that these people were able to make for participating on a social media site. Are you kidding me? And people still complain? How many people are making that type of money of FB or Reddit?

Another secret is that there accounts, if they remain active, will only continue to grow. This is the compounding effect.

At this point, their voting power is higher now than it was since the SP went up. Also, they have more followers which also means more votes for their posts. When their followers reaches a significant point, it makes sense to start posting articles on a more frequent basis. By upvoting those who regularly follow you, over time, their VP should increase which will grow the rewards they give you. This is the magical circle of STEEM.

The other factor to consider is your contribution to the growth of STEEM. All activity on this blockchain is recorded. That helps with the Alexa ratings for the particular apps like Steemit and D.tube. We also see the amount of daily transactions increasing which is picked up by a site like blocktivity.info. The longer that STEEM is the leader in number of transactions on a daily basis, the greater the likelihood that it garners the attention of the buying public.

Which brings up the final piece of the puzzle: the price of STEEM. We all know that price action is not reflective of what is taking place. However, at some point, a leading blockchain like STEEM will get the recognition that moves the price up. So far, I have to say it did rather well in this department moving from $.85 to the present $6.

Time is one of the key elements in creating wealth. If you want a large STEEM account, you need to give it the time to grow. As I just noted, there are a number of activities you can undertake which will increase the pace this happens. Nevertheless, understand that everything you do on here has an impact.

One of the way people sabotage themselves is by getting discouraged in a compounding situation. If you look at the retirement charts that are put out which refer to the growth rate of accounts, it is obvious the smallest return (in total dollars) is at the beginning. Of course, if you go out 40 years, the return is much greater since the account is operating off a larger base.

The same holds true on STEEM. If you are curating with an account of 100K, the 25% off your vote is going to be greater than one who has a vote of 4 cents. The percentage is still the same yet the amount is different. That is what everyone focuses upon: the total dollars. I suggest you look at the percentage return you are getting on a weekly or monthly basis for your activity.

Here is a quick calculation I did: If you have 50 SP right now, and you increase your account 10% each week (which is a small percentage when talking about accounts below 500), after a year, you will have over 7,100 SP.

At $6 per token, that is $42,000. If however, my view that we will see $100 STEEM a year from now, that is $710,000, a number that most would put in the "rich" category.

Is a year quick enough to "get rich"?

That is the power of compounding and STEEM is the ultimate compounding system. Warren Buffet would be in awe of this if he understood technology. This makes his returns look paltry in comparison.

If you found this article informative, please give it an upvote and resteem.


To receive the free basic income tokens you are entitled to and help end world wide poverty, please click the following:

Click For Manna Coins

Sort:  
There are 2 pages
Pages

Woah, you went over a lot! I have to say, when I started a year ago, @emancipatedhuman told me to grind it out, get better, and to not get discouraged.

Unfortunately, I did get discouraged and distracted and ended up taking 10 months off! I am back, hot and heavy now but I hate to think of how much I hurt myself taking that break. Out of the people I was following and those following me we were very active and we were all getting a couple steem per post (when it was at $0.15!!).

@samsiedenstrang and I ended up hiking and camping nearly every week and instead of blogging about it we just plain forgot about steemit (looking back I think the difficulty with esteem at the time was a large reason for it).

Great article! Thanks for sharing your tips - it is greatly appreciated.

While @taskmaster4450's article is as always deeply insightful and inspirational, your story of losing out 10 months is a stark reminder of what one might miss out if one doesn't get onboarded to Steem as an active member now. The sooner you are in, the bigger you are done the line.

That is a huge statement and one I agree with. Time is awastin' as they say.

I believe everyone will enter the crypto world, sooner or later. The ones who ignore it now will wish they didnt. It will be one of those situations where they could have started accumulating tokens via by engaging in their utility only to find they have to start at a later date.

SP is only going to get harder to acquire. The ones who are in now will stand to gain a great deal not only from the appreciation of the token but the fact that SP can still be acquired in decent numbers.

Imagine how hard it will be when payouts are .1 SP per post...it will take a while to build up to 1000SP.

Those who are there will be whales in the eyes of the newer people.

This is a very powerful message for anyone who gets discouraged. The fact remains that a 10 month hiatus starting now will mean that one is further behind 10 months from now than they are today. As the blockchain keeps growing, if one does not keep pace, he or she is only going to look at it as a missed opportunity.

Like was said, you cant cry over spilled milk but you can get active realizing that the next 10 months will probably see more STEEM growth than the last 10.

We are glad you are back....thank you for sharing your message.

Agreed. I thought my taking a month off was bad enough. What matters now is that @ericwilson recognizes Steem for the opportunity that it truly is and puts in the work to grow with the blockchain. The compounding effect you mention, @taskmaster4450, is like a video game boost in a way - once you learn how to leverage it, it becomes an incredibly powerful tool.

Hey @ericwilson glad you are back. Don't look back at what could have been man, just keep on truckin' forward. See you around.

Exactly! No use spending time worrying about the past, you got to worry about the things you can change, absolutely.

very good article about the essence of steemit
when everything is like steemit !!! or similar networks

Wow this post is mindblowing. I joined steemit 5 days ago and I'm really really enthusiastic upon it.

I can barely focus on my exams. It's funny that yesterday i actually bought steem worth of 400$ and converted it into steempower. I just want free time to post and connect with people on steemit.

Thank you for sharing this, these insighsts helped me a lot! Sadly the whitepaper is pretty boring to read and there's a lot of information thath's hard to understand there. You did a great job with this post!

If you're intersted in posts of valuable content on crypto you can check out my blog.

Welcome to the jungle, octavianfeodot. I did a post on dtube for newcomers a few days ago so check out my blog when you get a chance.

While looking at your blogs I noticed you had some set at rewards of 100% steem. Consider doing 50/50 as the calculations of the rewards are wonky right now and you will get more in rewards than if you did 100% steem power. You can still set up an account with blocktrades.us to convert your sbd for steem and power up with that.

Steem on!

thank you a lot for the tips, I will be considering this!

We were all new at one time @octavianfeodot.

There is a lot to learn here.

What @ericwilson just pointed out is a recent situation, only the last two months, since the price of SBD shot up. It is more rewarding to go 50/50 at this time since SBD pays $1 worth of steem . Hence a $1 post gets .5 SBD which is equal to about $3....so half the post is getting paid 3x the amount.

yes but what I'm planning to be a long term investor in steem . I also want my "voice" to have more power and my posts to be shown and appreciated by more people as I dedicate a lot creating them!

That is the attitude. STEEM success is a very simple system.

Consistently following the program will net you great results in my opinion. I know, for me, I am not re-inventing the wheel. It is simply a matter of following the program.

Dedication is a huge variable in all of this.

Thank you for all these words. I will be dedicating 16 hours a day but atm i have 1-2 weeks of exams. Untill then I will take it easier with steemit haha.

Btw I see your profile pic is with a cat you should definetely check my latest post ( i dont say it for upvote or stuff ). The post is about an awesome cat I love from the entrance of my building apartment!

Hello @octavianfeodot, welcome to Steemit, glad you are here and that you found the incomparable @taskmaster4450.
Just a little tip here, don't put a link to you blog in every comment you make. I won't speak for others but for me it is annoying and a turn off. It makes your comment feel disingenuous.
Here is what I thought as I read your comment,
"Oh cool this guy just joined, great! Oh and he bought some STEEM and powered up, smart! And he is thankful for the info the post shares, that's great too, I might check this guy out. Oh...click on the link to his blog....I wonder if he meant any of what he said or if he was just giving strokes to get a follow/upvote."
The thing is people can click on your username that is just above your comment to visit your blog so you don't need to post a link in your comment. I have seen people get downvoted for this and though there is no rule against it I believe it is generally frowned upon.
Anyhow enough of the lecture, I really do wish you well here. See you around!

you are hell right @summertooth, I will stop doing this silly stuff. Thank you for preventing me, I really appreciate it!!

The thing is i just wanted to add a caption so people will know what my blog is about before joining. Do you think adding a line at the end of each comment saying I'm a blogger on cryptocurrencies would be ok from your point of view?

I don't know exactly, but removing the link would be good. Maybe try to work that info in to your comment naturally instead of adding a tagline at the end. For example in your first comment here you could add into your 5th sentence the detail that you blog about crypto. No need to mention that you are a blogger as this is a blogging site so, technically we are ALL bloggers
:)
Why don't you add the info about yourself to your header? It will then pop up when people click on your username from your comment. Just go to your settings and type your info in the, "about" box. See you around....

a lot of people dont usually click I just did that hoping they will be attracted about crypto and eventually take a glance on what I post. thank you again I will try to be more caucious and see what I'll be doing.

I'm really honest when I say it, thank you for the warnings. I've never wanted to get free votes / follows , I just want people to truly appreciate the content I spend a lot of time, energy and love creating!

Yeah we all do, just keep posting and commenting, have a bit of patience, and good thing will come.

You power up that STEEM and convert your SBD to SP, and you will be over 1100 SP...on your way to 2,000 SP.....and a $200K account.... 😁

Personally, I think you are best to let your comments do the speaking for you. If someone likes what you said they can always go to your blog.

That's also true, I'm new and I'm trying to find my path through this !

Stick with the platform, it will continue to grow as we all make it a great place to communicate. Best of luck to you.

Thanks for taking the time to explain and make it clear! I think the 50/50 split system itself is brilliant to begin with because it 'forces' people to save and as they start seeing the benefits, it also educates them on the power of compounding interest.

One thing I still don't understand is how will the inflationary nature of STEEM (even though it is said to decrease annually over 20.5 years) affect its actual VALUE - in other words, what will STEEM be able to buy in the future? It's all a bit over my head at this point, but hey, today I got a nice payout that covers my initial investment with a profit! So I'm a happy camper and as a singer/songwriter, I can't wait to share more of my content on this platform.

Let freedom and abundance rule!

The inflation rate is presently 9.25%...it decreases roughly each year .25% meaning that next year it will be 9%. This isnt totally accurate in time because the rate is determined by number of blocks, not time, but that is the estimate since block time is fairly consistent.

In theory, the value of STEEM, all things being equal, would decrease the same 9.25% this year since there is more STEEM available. Hence, those who power up are protected against this since they will be given the amount to offset that inflation.

Of course, we also see the price increase as more users join the blockchain and more people get interested in STEEM. That is why I said "in theory". Ultimately, price action does what it wants...the market has a mind of its own.

Nevertheless, this is another reason to power up....protection against the inflation rate, which although that is decreasing from year to year, there is still more steem being produced.

OK, I see your point. As an investor though, investing (powering up) into an inflationary model with a deflation of - .25% every 300k blocks of generated STEEM built into it is SUPER CONFUSING! I'm ok with math but trying to wrap my ahead around this one is a lot :)

I wonder

  1. Why was the financial model built on inflation?
  2. Why was the $1 = 1SBD peg broken? Which makes the whole spiel even more confusing!
  3. Why did they create STEEM, STEEM POWER and SBD instead of 1 currency.

I don't expect you to answer these questions, of course, I'm just putting it out there.

I believe that things that are built on essentially simple models work well. Not sure about complicated ones... The thing is, I like to understand the things I invest into but this is producing a lot of steam in my brain :)))

Other than that, I'm simply enjoying the ride for now, and if I can get back my initial investment and produce some profit, I'll be happy! However, I'll be even happier if this can become an income stream for me as an artist!

Thanks for your time and dedication, @taskmaster4450

  1. Inflation is an expansion of the money supply...the only way to have a reward pool is to add more STEEM to the equation. At present, there will be 9.25% steem added to pay out the witnesses, authors, and curators.
  2. The market decided to break the peg. People decided to pay more than a dollar for it...the market spoke....personally I will take advantage of it until the market decides to come to its senses.
  3. STEEM is the cryptocurrency tied to the blockchain. SBD is debt (like the USD) that was pegged to provide a way for commerce to price things that, in theory, wasnt as volatile. SP was designed to add stability to the currency by having the user base "invest" in the system. Remember SP is really STEEM...they are the same...it is just the SP is STEEM in a different place. Plus those who put STEEM in SP are protected against the inflation; STEEM is not.

Thank you! I need to digest all of this :)

It takes time @petrajordan but you will get it.

Do not worry about getting it all...none of us do.

Just be consistent with your action and all will work out. The system is designed for success to those who follow it.

This is a really encouraging article! It is extremely easy to compare yourself to other accounts! I am sadly guilty of doing this from time to time. Though, I have learned that it's not always bad to compare yourself to others as long as you are doing it in a constructive way. It's easy to look at someone doing better than you and be jealous, envious, angry, discouraged, but instead of letting myself sink into all of that, I look at what they are doing. How are they excelling? What can I do to improve? Now, I don't deal in upvote bots and I find that is the biggest difference between myself and those doing exceptionally better than me that started at the same time, but there are a lot of other factors to consider as well. I finally figured out what my purpose was going to be on here, and I rebranded and have been consistent. I haven't seen much of an uptick yet, but I think it will inevitably go somewhere.
My parents always told me that you'll never learn anything if you always remain around those on your level. I have always stuck to that advice, and I have always been able to excel with it! Hang out with those that reflect what you want to be, rather than what you are!

Anyway, very insightful article! Thanks!

We are all guilty of it @bethwheatcraft.

It is human nature.

I think the difference is if we allow that comparison to get us down or we use it to motivate ourselves. Looking to others for clues as to what leads to success is a smart move.

Keep up the consistent activity and you will success. The system is geared for success....time and activity will get you there.

Thanks for this wonderful post! You did it again - you motivated me even more, while I thought, that I can´t be more motivated than I already am. ;) We also have to consider, that STEEM is the perfect way for crypto newbies to get in touch with this matter. You get instantly viewable results and learn the most on the power of the blockchain, what this technology is all about and how it changes lifes. That alone makes it exceptional!
That being said, I wonder why people who are already investing into crypto, have not found out, that Steem is so beyond every other crypto over the past years? I mean, it´s obvious, isn´t it?
Since I am relatively new to STEEM and haven´t researched its history in detail, why was this price drop from $3 to 10cent last year? Why did this happen or what caused it? (I just try to figure out, if this could happen again in the future) Thanks!

Growing pains I think. @dan left which, of course, sent things into a frenzy. Posting was dwindling...I think there was some infighting...

This was all before I was here. @stellabelle wrote about it one time in a comment section...she said the outlook as late as last April was horrible. Growth rates were slow and just the negativity was flowing.

When I started writing about STEEM back in October, it was still the same...people were negative on the price and the fact that it went from like $2 to $.85.

I took advantage to buy some at those levels...most just complained.

Thanks for clarifying. It makes sense and I think people start to realize, that Steem can stand on its own feet, even if "dad" left to live with his new love EOS. ;) Interesting, that we joined after this drawback and are now experiencing this child growing up in a totally new way - even stronger than ever before. I guess it´s always a question in which phase of the development you join and how much you believe in the project to succeed in the future. Now it´s our time to shine and helping it grow. Exciting times for sure!

Yes I think we missed the "growing pains" to a degree. We are now on a different path.

Today the complaints are about the downvoting system as opposed to whether STEEM will make it or not. We know there is a viable blockchain along with a reward system that is shown to work.

We need some progress with apps which I believe will happen over time. Add that to the fact more content is being created on here daily. Once communities, SMTs, and auto sign ups hit, this place will be unstoppable in my opinion.

My $100 STEEM by year end might be too low if all that happens and takes off.

@Taskmaster4450
I must say, now i know why you might have named yourself...stay on task and grow your SP diligently, post, curate,leave comments of value to the author, (one must really read the content for you to add a valuable opinion)
Yes comparison is a discourager...
To me, Steemit is like playing golf...
You can play a round with the best and the worst, but the only your score is what matters. On Steemit, there is a pay out for every player at the end of a round, that might never end.
We play for or against ourselves on Steemit.
Its a single competitiors game, Ask a pro golfer as he or she is making a critical birdie putt..if he is thinking about his partners score, not in that moment. Yet unlike golf, those that are new, have helping hands show them the way while they are playing at the masters...that is what Steemit is, a Masters course on digital finance, creativity,
and social interaction, all rapped up in hard work, without external obigation...
all four of these are critical for big sucess, in my opinion.

I am thinking of investing more fiat in steem.
I am right at the edge financially...yet I feel in my gut that like those that had stock early on in Apple, no matter how much...at the end of the day, they were smiling at the dividend check.
I feel like those on board Steemit is like being vested at apple in 1977 and that was based solely on fiat...how much more the value and community return, with investment in a Roaring Block Chain who's Bullish tirade will eventually gourd
the old Matadors of a failing fiat..based system. WOWZER!

Thank you for continually staying on task, Taskmaster and reminding that joy and hard work are dance partners if you know whats coming, right around the bend.
Lynn

Good choice on your header pic...he might be wiping his tears when he realizes at the end of 2018, the economic potency of the Steem Block Chain.

Thank you for this comment @the.human.union.

It is a great analogy...the gold one. Yes we are only "competing" against ourselves. What others do is not up to us. We post, upvote and comment based upon what our interests are and strive to add what we can to the blockchain. I can only be myself, nobody else.

Over time, accounts do grow. It seems slow at first but so is everything. Like playing golf, few pick up a club and go out and shoot par. Instead, they whiff a few, shank a few, and dribble some. Over time, we grow and get better.

As for buying STEEM, that is what I did. I, personally, think it a wise move. I believe we are far below what the ultimate potential is. What I like about STEEM is one can buy it, power up, and use the additional SP to increase one's return. This greatly aids in our progress. I never fault anyone for buying STEEM to advance their cause.

Plus it does help out the entire platform by pulling some STEEM off the open market and putting it into SP. Investing in the platform does pays its dividends.

At this moment, I am looking to create wealth with STEEM, hence powering up as opposed to creating an income. I think the overall return will be greater down the road.

Give me $100 STEEM and I know a lot of people will be very happy.

Your so right...it seems just in a weeks time there has been a speed up, my curation has started to trickle in...now that Robin Hood is online i will put more in to SP.
I've never played golf but my dad loved the game.
But I do try to catch the
Masters last round.

Due to SBD's broken peg (i.e. actually better scenario), one's SP can increase more than the compounding rate. It is great time to collect STEEM and power-it up due to SBD's favorable rate. The dollar amount or STEEM TOKEN UNIT (STU) represents 3 to 3.5 times in USD value. We are still early adopters, earning STEEM is easy, but in future, when STEEM's price will rise xx times, we may earn more USD but fewer STEEM. For starters, there is no free launch, one has to earn STEEM with effort if he/she does not own significant wealth or willing to take risk by buying STEEM.

Cashing out on SBD now means, if one wants to buy in later, it will most likely be at a higher rate.

And yes SBD is elevated, but so is the price of STEEM. While we are looking at roughly a 1 for 1 swap now, down the road, you might be looking at a 10 SBD for each SP.

No matter how you break it down, the odds are that there is no advantage to having to get in later or to acquire SP at a later date...it will be more difficult/expensive.

Warren Buffet would dive into Steem head first if he read this post! I am going to send this post to my family and friends who I have not managed to persuade to join Steemit yet!

Thank you for the kind word @lucygarrod.

I hope you have better success persuading your family and friends than I did. While I got a couple of people to join, most took the information and cast it aside. Oh well. Even when I asked them if they checked it out, they said no and presented some excuse. The ironic thing is I picked people who really could use this financially.

That is probably my mistake.

Oh I do hope so @taskmaster4450 ! I have been trying for sometime now and I think I might start to look like that creepy relative who is always trying to get you to invest in a dodgy venture :D

I have also tried to pick people I thought who would benefit from it but it seems that Edison was right when he said "Opportunity comes dressed in overalls and looks like work which is why most people miss it!".

Yes I was just thinking @lucygarrod, that STEEM is not for people who need it, but for those who want it....at least in the Western countries.

I interact a bit with people in the third world nations and they fully embrace not only STEEM, but Manna which I link at the end of all my posts, and a few others ideas I tossed out to them. They are willing to take advantage of any opportunity presented to them since they are in such a poor state. In the Western cultures, poor here is a major step up compared to third world situations.

It is interesting how that works....just an observation but one that is being drilled home the more people I talk to about crypto.

So true! Also, may be it is just that the majority of people just wait for a certain tipping point before they jump on board.

There is a lot of truth to that @lucygarrod.

Few want to the be early adopters. Most are crowd followers.

Many who are exposed to this now will end up joining. I believe everyone will be using crypto at some point...whether they get involved now or down the road, that is the only choice. Those who decide to get in now will be much further along than those later.

As for Steemit, it is only going to be harder to power up down the road since the price of STEEM will most likely be heading higher. Hence it will take more fiat to get the same amount of SP. Buying STEEM allowed me to get 1,000 SP for $850...now it costs about $6K....in a few months that might be $15K.

Emailed yr main post to a friend (a video film maker) who needs to join steemit, as it's the clearest fastest expo of the group and its potential for which I and many others thank you.

Warren B would cut to the chase and see two things: a pyramid with wealth and power accruing to a limited few at the top from a complex masterfully contrived and executed Ponzi scheme which generates its own wealth within its own activity as it produces nothing (to date) of any commercial value to sell to third parties.

That it directly benefits its contributors for now is without doubt. Steemit is literally keeping tens of thousands of members in developing countries from very hard times. For them alone (and many more who will join) it must not be allowed to fail.

Once currency speculators and traders move in the value will take off. If it gets pumped & dumped a lot of innocents will suffer. Mechanisms are in place to reduce wild market swings. But a serious economic downturn (many are already fearing is on the horizon) would draw scared money out as fast as it can be taken, and dampen future organic growth

If you had $1000 to invest in Steemit or Canadian potstocks you would buy into Steemit first. And find another grand somewhere later for the canuck hemp farmers

Steemit was designed to help you help it, and it's a pretty genius setup in every way... well except for the flagging system which needs to be fixed n my opinion.

The more you do for Steemit, the more it does for you... genius!

Anyone that did not appreciate or acknowledge the reward (no matter how small) and the potential of steemit and steem is definitely not meant to be here.

You said it all with this

Here is one key: do not compare your account to others!!!
It is easy to look at a someone with hundreds of thousands of SP and say, this is a scam. If you do that, you will certainly fail.

That up there is problem with us newcomers but we are not very wrong though. it is hard not want more when you check the trending and home and see how much reward some posts are getting.

What we minnows need to understand is most of those reward are as a result of poster's investments or getting in early and working their ass off.
It is best we use this as a motivation to get the next level and succeed on steemit.

If you are curating with an account of 100K, the 25% off your vote is going to be greater than one who has a vote of 4 cents. The percentage is still the same yet the amount is different.

I’m not sure that part is accurate. After all,

author_reward_curve = linear
curation_reward_curve = square_root

which implies that, all things considered, someone who has 4,000 SP would earn four times more in author rewards as someone with 1,000 SP but only twice as much in curation rewards.

I agree with you. A lot of people forget that these things take time, and that the way Steem is built and wealth is built with Steem is through using the platform over an extended period of time. It's the same way that you grow a YouTube channel, or other following on social media.

Loading...

Here is a quick calculation I did: If you have 50 SP right now, and you increase your account 10% each week (which is a small percentage when talking about accounts below 500), after a year, you will have over 7,100 SP.

At $6 per token, that is $42,000. If however, my view that we will see $100 STEEM a year from now, that is $710,000, a number that most would put in the "rich" category.

This was a wow analysis. One year is infinitesimal compared to the fifteen plus years I put in a job with nothing but debts to show for it. No, one year is definitely not much. Thank you so much for sharing this.

Thank you for the reality of this post....

Yes almost all of us put in a lot of years working at jobs with little to show for them. Some were able to put a few dollars away but nowhere near the amount we generated for those we worked for.

We have crossed out of the bankster run system....that is built upon slavery and the few reaping the benefits.

On here, we see the exact opposite. STEEM is designed to enrich all that dedicate themselves to contributing. Instead of a few making money, on here many can. Each person who is in at this time, and is active on a regular basis, will make a ton down the road. I believe that will be the case within a year or so.

Hola, estoy comenzando en esta comunidad y aprecio mucho el contenido de esta publicación, llegue aqui de la mano de un compañero de trabajo, que esta inmerso en el mundo virtual, como una forma de compartir experiencias de vida y asuntos que nos apasiona,hasta el momento, leyendo y visualizado unas cuantas publicaciones, me gusta mucho el desinterés que tienen los miembros Steemit de que nuestra experiencia resulte satisfactoria ademas de señalizar el camino para hacer de esta comunidad un ecosistema virtual mas equilibrado.

Thank you for the well-written post that breaks down how steemians can grow their account and earn from this over time. Of course, being able to invest in steem does help to fast-track account growth but that's only expected.
My main concern about the steemit platform is the number of people who abuse the system to maximise their own earnings while adding nothing of value to the community or platform as a whole.

My main concern about the steemit platform is the number of people who abuse the system to maximise their own earnings while adding nothing of value to the community or platform as a whole.

I think you will find this to be the minority on here. Also, many who appear to be doing nothing for the platform actually do a lot behind the scenes.

In my time here, there are only a handful of people who I witnessed as being in the category you described. There are a number who I disagree with yet cannot question their dedication to seeing steem succeed.

There are differences of opinion/methods yet most desire a highly successful blockchain and are doing what they can to ensure that.

I find that most of the selfishness comes from the newer people who are conditioned to be that way by the bankster driven world. As they are here a little while, I think they see this is a different realm. Selfishness is replaced by selflessness, or at least a degree of it.

Self-serving altruism as they say.

I'm definitely hoping that is the case. As new as I may be to steemit, I truly would like the platform to succeed. It is good that there are measures in place to curb spam and serial plagiarism. However, I have also seen such blacklisted accounts simply transfer their funds to a new account and continue flouting those very same rules. And when called out on it, they turn vindictive by downvoting those who dared to speak out against them.
To these people, it is merely a platform to fleece others and make a profit. And truth told, I can't abide that. Of course, they aren't likely in the majority but a few bad eggs can often be enough to spoil a magnificent cake altogether.

Great way to look at the platform rather than getting bogged down by the payouts on certain posts and looking at others in envy.

I've said from the beginning that I'll not focus on the money. Just purely because it's going to become detrimental in the near future if I begin to gain more influence and start to pull in more interest.
But... taking the compound interest factor into account I can shift my focus onto increasing my SP every week by 10% and the money doesn't become a means to pay myself, just a target for my investments.

Getting discouraged early on because of the learning curve is quite common. There is so many guides and articles out there, like your own, that give you such a better understanding of Steem to prevent this from being a concern. People just have to read.

Money is a by product of the actions one takes on here. It is basic: the more active one is in creating quality contributions, the higher the payouts will eventually be.

There is really no need to rethink the process...it is simple in nature to understand and follow.

I get you. Stay active & keep on giving.

As I wrote also yesterday, it's not so much the economic inequality, but rather the political inequality that is the main problem. 0.1% owning 75% of the voting power over both the reward pool and the witnesses is not a good system.
I don't envy their wealth, and yes - steem has given me my fair share of wealth.

I understand what you are saying. Here is my question to you: have you voted all 30 of your witness votes?

The only reason I ask is because I am guilty of not doing it.

So it is one thing to complain about the power breakdown yet when I do not use the existing power handed to me, then I am doing some double talking.

And since few even know about it, I am sure very few minnows and red fish are using their witness votes. (Ironically, I know some Orcas who didnt either).

Over time, these shifts are going to take place...and I believe it will be quicker than you think. If there is a massive influx of people, like is expected, and they get active, the numbers simply will overwhelm the few who are holding the SP right now. Their percentage of the reward pool will plummet, hence their overall position.

I voted for ~ 10 witnesses yet. It takes time to get to know their positions. And also, as long as witnesses are elected by whales - and in the current system they are - it doesn't make any difference whether you vote or not. That's the sad part. If every vote counted the same, I bet there was more participation in witness voting.

maybe when it changes!

I disagree completely.

Steem is a total merit system. SP is based upon the contribution to STEEM and the blockchain. You want one voice, one vote. Really, so you feel that a newcomer should have the same impact as someone who has been on here for a long time exerting effort, money, and time into this blockchain. Why does someone who signed up a week ago deserve the same input as say a @jerrybanfield...someone who spends a lot of time promoting STEEM?

You want the same voice as a whale, sorry to be blunt but you dont deserve it. Neither do I. We havent contributed to the platform the same way as they have.

That said, everyone is entitled to increase their voice...simply increase the SP that he or she has. Nobody is prevented from doing that. They just need to contribute more.

Here is a comparison for you.

You joined in November, so I will say you are here two month....in that time you amassed 765 posts. @jeffybanfield started in May, so we will say 7 month...3.5 times as long as you have. Yet he has over 18K posts.

And you honestly tell me that you deserve the same vote, on any level as him?

By the same token, someone who signed up last week and have 15 SP doesnt deserve the same voice as you with two months under your belt and over 700 posts made on here....you contributed a lot more than that person.

You want the same voice as a whale, sorry to be blunt but you dont deserve it. Neither do I. We havent contributed to the platform the same way as they have.

I didn't say that. It doesn't has to be 1 account 1 voice. But a system where 0.1% of the accounts have 75% of the power is much more centralized than the real world - and Steem is supposed to be a decentralized system.

If we believe in our own philospohy, which is at it's core the believe that decentralization of power is good and benefits all, we have to build in mechanisms that lead to a better distribution of power.

The current system is a contridiction of our own principle.

The only thing I can tell you is that the system is changing it and moving in the direction faster than any other token I have seen. It is moving to a more decentralized system with each passing month.

For example, the biggest of Whales, steemit, is in the process of powering down 71M SP over a 13 week period. So, basically, this quarter, you are seeing a major shift in power. Steemit is doing this for other apps to use for marketing purposes like it did with D.tube. Hence you are going to see more whales created which changes your .1% number. At the same time, that SP that is sent out is going to be used to entice other users from other sites (like Instagram as an example) to come on here...hence those with big followings on those sites will be rewarded, creating more dolphins in the process.

This is the magical circle of STEEM that myself and a few others write about. It is impossible for one to keep the same position as a percentage as the VP power of others increases (along with more people). Dilution is already taking place.

Whales account for 65% of the MVests now...down from 72% a quarter ago...that is a significant drop in 90 days...I would not be surprised if they were under 60% by the end of March at the rate things are going.

We will see it. If you're right, I'll buy you a beer some time^^

But I am and remain - by nature - a scepticist.
I'd rather adress a problem I falsely see than not adress a real problem that I should have seen.

Thanks @taskmaster4450 for sharing this post with all of us.

 lot of newer people still fail to understand how building wealth works. 

Well truly couldn't deny that fact when anyone who sees money they just get blinded by the shine it has but don't take it as an opportunity rather than just thinking to get rich overnight. Definitely not a quick rich scheme but if you have little bit of talent too or even you are an interesting person or have any kind of hobby you can share it with the community and build some relationship with others.

Engaging is the No 1 aspect of this system and later comes the Power up if some has extra wealth they can definitely use if that as an advantage to the core and have an extra edge over others & if one don't have steem ecosystem helps those too by building it over the time.

 That is the power of compounding and STEEM is the ultimate compounding system. 

Wow those calculations seems pretty fascinating to me even i now got some confidence and boost from your post to think about the future and seems like consistency will be the key here.

Thanks a lot again for sharing this amazing article full of great insights and deep analysis one of the best knowledgeable post is have read today and yeah thanks for being the inspiration.

Have a great day ahead 

Cheers. 

I think my understanding of Steemit has increased exponentially in the short time that I have been following your posts. I particularly like your take on increasing your SP account 10% each week. Now that's an attainable target. Resteemed again. I can't help it, good stuff here that should be shared.

This is very inspiring and a great reminder that it takes time for wealth to form. In the U.S., the general rule of thumb was always that you should start saving for retirement in your early 20's, so that money had time to compound. There are different charts that show the enormous difference in account size between, say, someone in their 20's and someone in their 30's who starting saving for retirement. Just a difference of a few years can make a huge difference, due to the power of compounding interest. So... with steem, I think it's similar in many ways. Ultimately, I have faith in steemit - that with every new comment, every new vote, every new blog post, and every 1 point gain in reputation, I am creating a powerful foundation for future wealth accumulation. Will be interesting to see where it all ends up!

I have faith in STEEM and the developers. Steemit probably will be successful but STEEM definitely will. There are many other wonderful apps at present with a lot more coming. The SMTs should draw some wonderful sites to this blockchain.

I agree overall, there is a lot of upside left. Anyone in now is going to really be enjoying life down the road.

All aboard.

I just re-read Part I of your article after reading Part II. This is still my first week on Steemit, and I'm trying to wrap my head around everything. One point that you bring up in Part I of your article is how 50 SP, when compounded over 52 weeks at 10% per week, would result in an insane amount of wealth ($710,000). Admittedly, that got my attention. But initial newbies to Steemit basically have 0 SP, right? So how to get from 0 to 50? Is it better to opt for slow, organic growth and get to 50 SP after a period of posting, commenting and curating? Or simply to use $300 or whatever it would cost to buy 50 SP and opt for the "i'll buy my way into this game, thank you very much" approach? If Steem is indeed headed to $20 or $50 or $100, it would seem to make sense to buy in when it's still trading at $5-6-7. Buy low and sell high. Or am I missing something?

very nice article as usual. totally agreed btw. i told my friends the same thing 2 years ago, when i started out in crypto... do you consider 1 or 2 years a long time to get rich? i dont...
most people spent most of their lives (or all of it...) trying to archieve financial independence or a certain level of wealth which they never archieve.
the true key to success is that it doesn't come from nothing and it requires a certain level patience and determination.

Ok, so I have to buy some STEEM. Is the Blocktrades website the only way or is there something that more experienced users do?

I also got that rewards should be kept at 50% (got this from one of the comments below)

Does anyone have any other quick and dirty tips for newbies like me? Since my free time is a little limited, I have been mainly reading and commenting instead of writing my own posts. That will change soon!

Thanks for the post @taskmaster4450 I'm definitely glad to be following! The post gave me some energy.

Thanks for the comment @gratefulforitall.

I used blocktrades when I bought my STEEM...others might have another idea. But there arent too many places to buy it.

You are right to do the 50/50 while SBD is above a dollar.

Commenting is my path to larger success. Communities will present a different approach possibly but as of now, commenting is the best way to contribute to the platform.

Over time, you will see some growth from that.

I joined in August, but waited until December to start posting. That was nearly 4 months wasted. I could already be at 1,000SP or better if I had started right away. That's not discouraging me in the least though, because I'm here for the long haul. Even if it takes 2, 3 or 5 years for STEEM to reach $100 what other platform will give you those type of returns?

Really appreciate your content creation.

You remind me of an einstein quote that has always stuck with me. Goes something like this:

Compound interest is the most powerful force in all of existence.

You nailed - there's a real velocity that is possible. It's something I have to work on.

I've mostly only dipped my toes in the pool of potential thus far.

Your post has inspired me to at a minimum - make the effort to share my insight when and as i read and curate great content.

Here's my $0.07 upvote.

Absolutely....it is a miraculous thing.

Unfortunately, for most, the only thing compounding is the debt on their credit card.

The more active we are on here, the more things start to happen for us. The secret to success on here is no secret...simply post, comment, upvote...over and over.

Oh by the way - pretty sure warren buffet is all over crypto - i think he's just like Jamie Dimon - says one thing while doing the other.

cheers

I am not so sure of that.

Warren is a guy who does not invest in something unless he thoroughly understands it. He just started buying Apple stock the last few years after a decade long run....because he finally figured it out.

Unlike Dimon, at least Warren is genuine. It wouldnt surprise me if Warren does not see the potential here. Since crypto is ultimately based upon a decentralized computer network, I am sure that is beyond him.

Either way, he doesnt help the situation by espousing what he thinks is going on....because you are right, he sounds like a bankster then.

In your post I see support and hope. After 2 week on Steemit, I'm sure it's a job. If you want to achieve something, you must work hard. When I see the increase in Steem Power (can I brag? Over the past week + 0.576 STEEM POWER) it inspires and inspires me. For me it is very important to see the result of my work, it gives me the strength to move on. Please tell me, how a novice can draw attention to your post? For 2 weeks I realized, that for many Steemit is a business. People vote for people, who vote for them mutually. It is a vicious circle. Although for a beginner at least 1 authoritative voice user Steemit is a great success and the impetus to move forward.

Keep commenting...then you ride on the success of the author who you are commenting upon. While you do not have a following, that person does which means those who follow him or her could read your comment.

This potentially gets you upvotes along with some people checking out your blog. Over time, it all adds up.

Thank for the advice!

Compound interest in definitely the way to go even in the fiat world. In the crypto world it's the bomb, however it's difficult to have a consistent presence on this platform day in and day out, simply because most of us have other commitments,
However the time spent here is definitely worth it.

Imagine if he actually reads this article and invests into Steem xD
On another note, I had joined here on Jan 2017 and hadn't posted until 6 months. Even after that I wasn't consistent. If I apply your compounding principles to my Steemit account, it hurts. :P Better late than never!
Thanks for writing this. It's pretty motivating for the new folks.

Nice post, I had been meaning to write a little starting out guide for beginner's and this spurred me to do it today. I feel like people don't understand how early we are to the site and how much room each of us has to grow if we get involved properly. Here's the link if you're interested.

@taskmaster4450 just went absolute HAM with this article! Users must get this straight: Time will pass us by no matter what, but what we do on a daily basis determines our growth by the end of time!

If you want to grow your wealth, then start doing things that actually grow your wealth! Eg. commenting on this post, upvoting and resteeming it, producing your own content, upvoting and supporting your followers, POWER UP etc.

If you want to sulk about where you are today, trust me you'll be sulking again one year later - because you've not budged a single bit yet.

It reminds me of when STEEM was at $.85 and Stackin and I were commenting about how we are buying STEEM at that price...he put up a post about how people complaining about how Whales were able to buy STEEM at 6 cents were going to be the same ones who were not buying at $.85 yet will be complaining about it when it is $2.

Well we are at $6 and guess what, they are sore they missed out on that $.85 STEEM.

Complainers never get anywhere because they are spending their time finding fault....the successful are too busy to sit and wonder what is wrong with the system...they are just posting, commenting and upvoting.

You are right, a year from now, many will be bitching about how they cant make any money or those greedy dolphins (or even minnows) were lucky to get in so early.

How dare you mock our All-time-investment-god Buffet.

But I like it.

He indeed has no big interest in new tech let alone somethinf ground-breaking like blockchain. And don't think he would be interested looking into 'small marketcap' coins like Steem.

No I agree....he admits he doesnt invest in anything he does not understand and cryptocurrency is way over his head.

He avoided the likes of Google and Apple for years (decades) because he didnt understand how they made their money. Apple is a little easier to understand yet he only started investing in it a few years ago. Google is still beyond him.

You can't teach an old fox new tricks.. And in his case he doesn't need to 😅.

No he definitely has it covered...both financially and from an investing standpoint.

Plus at 87 and with near $100B, what is to teach him...he can buy whatever he doesnt know.

For that he definitely is a ultra conservative investor with overwhelming success.

Too many seem to think this is a great rich scheme. Well, I will tell you, it is.

That's a great quote! You do a great job of explaining the power of compounding.

The chart that shows hockey stick growth - and where most people lose faith and pack it in before the exponential growth kicks in!

Very true @stevelivingston.

Most people walk away before the explosion takes place. People are taught to think in a linear fashion which means they do not understand exponential growth. This is why most under estimate the advancements in technology over 5 or 10 years.

That said, the best time to get add more crypto is right now. Sure there are ebbs and flows but those who are in now and adding (while HODL) will end up big winners in my opinion. STEEM is one token that I see at the head of this class. It is going to do very well over the next couple years.

Yes, how does that saying go?

People overestimate what they can achieve in one year and underestimate what they can achieve in five...

Great article. Reading through it the logic is hard to argue with. The only thing to worry about is the failure of the platform. We're still in the early adopter phase of this kind of technology, like Microsofts Zoom (Zune?) and Apple's iPod. The question is, will Steemit power through the upcoming hard times as competitors come to market more adapted to the challenges that this one revealed?

I'm betting on this platform, though. ...wait for a perfect situation and you'll miss all the opportunity :)

Thanks for posting!

Steemit is not STEEM....that is important to remember.

Steemit could bit the dust...it is an app....however, STEEM is far and away one of the better blockchains out there. While I do believe that Steemit will keep pace because the development team is sound (although lousy at communicating with the user base). However, even if it failed, STEEM would still move ahead. There are lots of other apps on here that are gaining attention.

As for competition, that is a bankster world mindset. On blockchain, it is really no competition as much as preference. People will use what they want. Yet if we go with the competition, how about the idea that the competition could come from someone developing a better app...on this blockchain.

There is a chance the better mousetrap is built upon STEEM meaning you are no worse for wear. You entire wallet is on the blockchain and would apply equally to the other apps.

As long as development is taking place, STEEM will do well. And from what I can see, there are many on here who are pounding away at their keyboards creating apps. It is a wonderful place to be.

Wow....yeah, that's an epiphany. As long as I have Steem and people use the blockchain, I win...

So even if Steemit bit the dust I would still own all my Steem? Or those are questions I should Google search for?

But, dang, yeah, your reply really gave me a new perspective. And, wow... Thanks for taking the time to be so in-depth! :)

Yes your STEEM is on the steem blockchain...

Steemit is only an interface. Busy.org, chainbb, D.tube, and Zappl all access the same information.

We are entering the Age of Abundance with cryptocurrencies. STEEM, in my view, is going to be one of the ones leading the charge. The Internet came to money. When the Internet comes to an industry, it does two things: upends what is there and creates abundance. We saw this with information, communication, music, and video to just name a few.

Want to really see your hodlings increase, wait until we start seeing tokens created on this blockchain using the SMT protocol. When that happens, many tokens will be airdropped to the users on here. We are most likely going to see a lot of tokens given to us much in the same way as BTC hodlers got BCH and BTG.

Talk about money multiplying and compounding. That is something that I even forgot to mention.

Perhaps a post for tomorrow.

Wow. Yeah Eyes slowing opening to what's really going on. I thought Steemit was just a way to get some money for what I do and build a bigger community around my work, but, the Steem we're all earning has a much bigger potential than I ever realized. Sets my blood on fire to work even more on this platform.

And the people on here...the one's actually building community, so far, awesome people ;)

Thanks again. I look forward to reading what you put out next :) Glad I could help inspire a potential post.

If you're even close to your estimated price increase, I will be one happy camper task. I'm really enjoying this platform. I'm trying to get my upvotes in today, as I have an event tonight and won't be on until late.

One off the subject question, Task. Why does bandwidth fluctuate mostly in the mornings? I always hoover around 98% in the evenings but 50% in the mornings when I wake up. Keep on creating this great content Task. Later😎

I do not know the bandwidth part of the equation very well to be honest with you @wonderwop.

I do know that as your SP increases, bandwidth becomes a non-issue. I have so many GBs at this point that I never even bother checking it.

Keep doing what you are doing...upvoting when you can and commenting as you see fit. This will keep adding to your account on a daily basis...if all is powered up, you cannot help but to grow in stature on this blockchain.

Thank you for the update. I will continue to take your advice, as it is working for me at this time. Thanks again. 😎

10% a week is some insane growth. Definitely a get rich quick scheme. Yet people like us who bought into this steemit platform knows this is very possible. Lets keep steeming and collecting SP. A decade from now I lets see who has the last laugh. Thanks.

Yes 10% a week is insane growth, but not for those who are under 500 SP...it actually is very doable. A couple decent upvotes on a comment or article will add that.

I doubt it takes a decade...I think you will see laughable numbers by the end of 2018.

We are in for a huge year in my opinion, not just for STEEM but crypto in general. Nevertheless, I expect STEEM to excel greatly.

Great article. I've been on Steemit for just over two months and I'm finding it hard to parse the potential of the platform, mainly because of its importance. With consistent posting over that time I have seen a modest but healthy increase in activity and earnings, but to think of where we could all be in the next few years is staggering to me. I think once the general public (current non-Steemians) grasp what's actually going on here they will come in their droves, and that will benefit everyone.

Most importantly though, people should enjoy the ride and try and post the best quality content they can. The rest will come. Keep up the good work!

My goal for Steemit is:

  1. Quality content
  2. Quality interactions in comments
  3. Participation in contests and challenges
  4. Earning STEEM and powering up to increase influence
  5. STEEM income is great enough to 'Power Down' while still increasing in overall STEEM POWER investment
  6. Trading STEEM directly for goods and services (or paper cash)
  7. Buy an island. (least priority)

@ironshield

That is great @ironshield.

Number 7 will come true if you do the others and my forecast is right....STEEM is going to have a large number attached to it someday.

Reading this post inspires me to continue making Steemit a better place for everyone and build wealth for the banked and unbanked to be part of this revolution.

I did not think in such perspective. I knew that compounding was required but I did not expect so much . I need to learn on how to increase my SP since I am growing very little percentage wise so will need to look through .

Thank you for pointing out 1) look at the % return instead of the amount return. 2) support those who upvote you and in return, you'll get higher value upvotes down the road from them. By the way, do you know the formula to distribute 25% curation rewards among all voters? Thank you for this great post. It really helps!

When I was younger, I cut grass for a lady who owned a bunch of condos. She knew I was in to math in school and said to me that "Those that understand compound interest earn it, those that don't, pay it." It stuck with me.

download.jpg

Thanks for this wonderful post. I found it very expository.

Thanks for this - yeah, I've been thinking something similar. What may look like small returns right now (as I'm quite new to this), that can quickly grow; particularly with greater uptake by new users.

Excellent article. I am a new user and learning my way around. I am here for the content and your article helped me understand the platform better. Do you think it is difficult and expensive to buy Steem? Isn't it better if it were traded at Binance and can be transferred to Steem account? More ways people can buy steem, better it is.

Really amazing post!
I understood one thing clear: invest time on Steemit ,very important :)
Thank you for this great post. And have a great day!

amazing stuff..... RESTEEM :)

No doubt, comparison is the thief of joy

Thanks alot for the enlightenment. I now understand how this platform works. God bless you

There are 2 pages
Pages