Yesterday I stumbled upon a post on Steemit platform having highly intrigued title which read "4 Years From Today You'll Have Over $150,000 US - Worst Case Scenario - If You Keep Posting, Commenting and Curating Daily".
Sounds like it's raining money!!!
At first glance, I thought it would be a clickbait but hell, I fell for it and clicked to read the full post. I found the article full of non-required marketing type of text but it had some strong claims to support. And the support was: you get " 0.6% interest for the Steem Power you were holding for 1 day".
Screenshot from the post
This was great! I never knew that holding STEEM Power was generating us some interest. But I was skeptical too. I couldn't believe it was so easy. So, I went to FAQ page to check if that was really the case.
Screenshot from the FAQ Page
WOAH!!!!! π΅π΅π΅ π²π²π²
I was shocked!π² The interest thing did look like a real deal as it was mentioned in the official FAQs of the site. So I took the article very seriously. Ran the calculations in excel as per, so claimed, 0.6% compound interest on Steem Power.
Another shocker!!!! It showed that my 73.537 STEEM Power would be roughly half a million in around 4 years!!!!
That was too good to be true. And as they say in cryptocurrency world, if it is too good to be true then it might not!
If this was the case then people with thousands of SP would be rolling on STEEMs without doing anything. Not only that people with some money would purchase STEEM and hold it as STEEM Power on steemit site earning huge interest.
It needed some more digging
So, I scanned through all the comments and found that this was already discussed a year back! (Thanks to @cryptotem for posting the link in comment.)
@anonymint claimed "Itβs so easy to become a millionaire with Steem" by accumulating compound interest
in his post https://steemit.com/steemit/@anonymint/it-s-so-easy-to-become-a-millionaire-with-steem which was rebutted by
@bacchist in his post https://steemit.com/interest/@bacchist/steem-power-interest-is-not-compound-interest
And for me the clarification given by @bacchist made more sense.
To make sure that whether I was receiving the so claimed 0.6% interest or not, I noted the SP on my account which was
73.537 at 7:35pm IST (24th July 2017)
I waited for a full 24 hours to see if I get roughly 0.441 added to my STEEM Power making it 73.978.
But I was disappointed!!!!
The Steem Power did increase but not at the rate of 0.6%. Instead of 0.441, it added only 0.004!
73.541 at 7:35pm IST (25th July 2017)
Hence, I came to conclusion that the Compound Interest on Steem Power is a real thing but the rate of interest is too low!
Sorry to disappoint you folks, but we are not going to be millionaires so easily! Let's keep working hard, let's share interesting stuff and earn more steems. That might make us a millionaire some day! π
P.S.: To understand why Steem Power is increasing a little, you can refer @bacchist's post https://steemit.com/interest/@bacchist/steem-power-interest-is-not-compound-interest.
It might give you some good explanation (which is making sense to me too).
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yip, unfortunately, nothing in life is easy, unless you win the lotto :-)
Yeah. Definitely nothing in life is easy. And I would consider winning the lotto hardest because if you do the math probability of winning lottery might be lesser than actually becoming millionaire on steemit site π
If we plan properly and work towards the target then we can achieve our goals. It's a long term process but not impossible for sure.
I fully agree π
Now i will never become a millionaire :(
Why not? You can surely become a millionaire @macbaren. Instead of loosing hope I would suggest to make a plan and work hard to achieve your goals. I am sure one day you will reach your target. Many have become millionaire in crypto world. May be you could be the next. πππ
Compounding interest of SP is very real. But many people who try to calculate it put the decimal place in the wrong place. Math is hard for some folks?
With just over 1200 SP, I am earning about 0.5 SP interest per week. I did a post a week and a half ago that had some interest estimates:
https://steemit.com/milestone/@preparedwombat/1-000-steem-power
Anyone who thinks that SP does not earn interest needs to look at the wallet page of @freedom and note the SP number. Refresh your browser. Look at the SP number again.
Ok. I just noticed that you updated your comment after my reply. So kindly ignore my previous comment. I am going through your post and will get back to you with my views on it.
And yes, I just checked that SP of @freedom is constantly increasing! That's a good example. π
What is the rate of interest are we getting on steem power? I tried to find it on authentic steemit papers but couldn't find till now. If we go by your statement 'With over 1200SP, I am earning about 0.5 SP interest per week.' then the rate comes out to be 0.042%. That's pretty negligible.
Do refer me authentic source to confirm rate of interest if you have. Thanks.
I have no source but based on the numbers I crunched, it seems to be about 1% per year. Maybe a tiny bit more? @freedom does not appear to be very active. In theory you could record the SP number and check it again exactly 24 hours later. As long as the wallet had had no other activity over that 24 hour period, you'd be able to calculate a daily interest rate.
Yes, your assumption of little over 1% looks good.
If we go by your statement 'With over 1200SP, I am earning about 0.5 SP interest per week.' then the rate comes out to be 0.042%.
If it is 0.042% per week then yearly rate comes down to around 2%. So your calculations look pretty close. Surely it is not very big return.
Nice bro!
Thanks a lot bro π
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STOPGood Analysis. I am also learning how to use steem as content platform.
I see that you are not much active these days, did this platform disappoint you?