Steem Power might very well end up being the 8th wonder of the world. Not sure what I’m talking about? Then let’s delve a little deeper into just how powerful it is and how it can help change many people’s lives and change the social media landscape forever.
Since the introduction of HF 19 on Tuesday, we’ve all seen our influence go up dramatically. It’s been a very exciting week and I think we’ve all loved the fact that that with one click, we can now very quickly and efficiently monetize our influence through our upvotes. But one question has really bothered me all week, and frankly just makes no sense whatsoever.
Why is the Steem price not rising? It really boggles the mind. We all know Steemit is incredible with what it provides and the problems it can solve across so many platforms are truly astounding. I have some ideas where Steemit will go, but I know what it will evolve into will undoubtly exceed even my wildest expectations. Steemit is setting records for the amount of interactions on a block chain. That to me signifies people find it useful, it solves a specific problem for them and they trust it. Those three criteria are key for anything to become a household name and promote long term growth.
So again, why is the value of Steem not rising after HF 19?
The answer is quite simple, Power Downs.
The current amount of power downs in Steem are greater than the amount of new and current users purchasing Steem.
This chart from steemwhales.com shows that roughly 95.71% of all available Steem is owned by 1%, The Whales.
Due to their massive holdings, a 1/13 power down is quite a substantial sum. It would take millions of new users “powering up” to buy all the liquid Steem that’s hitting the market. But I believe this time is coming, and coming fast due in large part to HF 19.
This next chart, also from steemwhales.com shows the amount of Steem currently being held in SteemPower.
You’ll notice quite a difference here. The amount of Steem being held in Steem Power by the whales is substantially less, only 70.82% vs the 95.71% of Steem, while the Dolphins now have a significant portion of the pie holding 6.76% Steem in Steem Power, with Minnows holding 1.17%.
The Dolphins and Minnows are holding for the long term and the more of them that flood in, the greater these percentages will sway.
Don’t get me wrong, there’s nothing wrong with taking profits or paying off debt, you can do what you want, it’s your money, but from an analytical perspective, Powering Down looks like a very costly play. There is no guarantee that you’ll be able to recoup those precious Steem Tokens at the price you’re selling them for in the future, but the influence you give up since HF 19 is catastrophic.
Here’s a brief example to show the power of holding Steem Power since HF 19.
You have an account of 1500 Steem per se and hold it all in Steem Power. With the current Steem price being $2.20, that makes your account value in USD $3300. That should roughly give you an upvote of around $1.50. So for examples sake, let’s say you upvote every day until your voting power gets down to 80% and then call it a day, let your voting power regenerate and start up again tomorrow.
Using these numbers you’d be able to give out $15.00 per day.
15 --100% upvotes (costing 2% per vote) = $15.00
Let’s say you split your upvotes at 50% for upvoting others and 50% for upvoting yourself.
$15.00 per day
$7.50 per day you’re upvoting your self and $7.50 per day for others
$7.50 per day times 7 days = $52.50 per week for yourself & for others
$52.50 times 52 weeks = $2,730 per year for yourself & for others
You started with 1500 Steem worth $3,300
After one year your account is worth$6,030
That is 83% ROI and I haven’t even figured in 1 penny of author or curation rewards nor the price of Steem increasing.
Just let that sink in for a minute.
This is why I refer to Steem Power after HF 19 being the 8th Wonder of the world. This could quite possibly be the greatest opportunity of our lifetimes. My grandfather always would tell me opportunity never knocks, it tiptoes down the street and tries to sneak by while you’re sleeping. If you want to catch opportunity, you simply have to be alert and ready, and when he comes tiptoeing by, grab him and don’t let him get away.
Hope you enjoyed the post and took something positive away from it. Have a great weekend and make today a great day!
I do want to add this. The split is a personal decision and something you have to decide for yourself on what best serves the community and long term growth of Steemit. HF 19 has given us all greater influence, so we all have greater opportunity and greater responsibility to do what’s best for the community.
imagesource
charts supplied from www.steemwhales.com
Useful Websites for Steemit Newcomers
www.steemd.com
www.Steemnow.com
www.steemdollar.com
www.steemwhales.com
An excellent post, thank you! There are indeed many whales cashing out on secondary markets, and they are being strangely careful to not tank the price while they divest. The steady stream of STEEM hitting the market every day is indeed suppressing market cap but as you say this trend will slow and eventually turn around. Steemit should be in the top three on CMC right now, but it may take another year to get there.
I am putting everything I can into Steem Power as I also believe it to be a once-in-a-lifetime investing opportunity.
Couldn't agree more. All this extra liquidity in the market will be soaked up as more and more people find Steemit. From what I'm hearing HF 20 will make the sign up process more streamlined and efficient which might speed up this process. Thank you for the great comment!
You got to diversify as well though @johnsmith i have got an ether mining rig to generate some passive income with gtx 1060 superclocked 8gb whirring at 8usd per day per two cards
Great Post!
Love the step by step breakdown...and the consideration for self and others. Harmony in Balance :)
Over time we will have the data to report the compounding interest that adds to the awesomeness potential here.
Just wrote a share on how much we can grow our utmost potential in a variety of ways with the understanding the dynamics of compound interest.
Compound Interest - The 8th Wonder of the World
Thank you! Compounding interest truly is the 8th wonder of the world and your post was laid out eloquently so even the layman could grasp it's power. "Those who understand the miracle of compound interest are destined to collect it, those who don't are doomed to pay it." We have our own compound interest at Steemit, "Steem Power"!! :)
You nailed it! I can't for the life of me understand why anyone would power down or sell Steem right now, but at the same time I'm kind of grateful because it gives those of us that want to invest more for the long term a better buying opportunity. Thanks a ton for putting this together.
Thank you! Agree 100% Keep stacking that Steem Power!
Gotta be honest, I sold a bit because I have to buy diapers, haha.
Def can't blame you for that one! And I def don't recommend the reusable cloth kind, tried that for a day and that was it!
My sister gave it the old college try for her first kid and she said it was a monumental core. Good thing she quit, too, because now she has 5, 3 & 4 being fraternal twin girls!
You gotta do what you gotta do, and in the "gotta do" hierarchy, diapers are at the top of the list! :)
Yuuuup.
Thank you for the informative post!
I am new on Steemit. I registered approximately 1 month ago.
My current Steem Power is 3.496 STEEM
(+145.446 STEEM).
My current account value is $7.50.
The example is really helpful in your article!
You got a new follower!
I also upvoted and resteemed your post to support your work!
Enjoy Steemit! Have a nice day!
Thank you! Welcome to Steemit! Just keep plugging away and posting great content and comments that benefit the community on a daily basis and the Steem Power will follow! Have a great rest of the weekend!
Thank you very much for your support and your kind words! I really appreciate it!
I wish the same to you! All the best!
followed as well! and up-voted
I'm not sure you're right, I think it's just that the whole crypto market is dropping this week & taking Steem right along with it. Context.
I am trying to maximize steem rewards following a similar strategy with a combination of SP delegation, Vote Selling to MinnowBooster and supporting my own posts which I feel like have some monetary value for the time spent to write and post. I need to work on creating more beautiful posts with markdown style but at the moment I feel like the content is more important than wasting time on perfecting the look.
As Steem price and Crypto as a whole increases in value I will have more time to spend on Steemit hopefully providing great value to the community by sharing my investing passion. Dream big.
It's been tough getting back to 100% voting power... but thank you and nice tip about staying around 80% and then waiting to power up again. 💯 💯 💯 💯
Thank you. i hope it helps. I learned this strategy from @exyle. I feel stopping at 80% helps you manage your votes more wisely while also allowing you to give out max $$ through curation. It's takes just too long to get back up to 100% after going on a voting binge and we all love to vote,lol. :)
guilty of the binge .. lol :)
I think we all were, lol! :)
I think many of us went a little vote crazy after HF. I love up-voting content and I'm struggling to get my vote power back up over 50%. As such a new user, I guess I shouldn't really be too concerned and just keep voting what I like until I can accumulate more Steem power.
Great explanation of efficient use of steem power. Thanks. ALSO resteemed.
Thank you! Hope it will help!
Your grandpa was a wise man!
Indeed he was! Thank you!
Great Post. SteemPower is definetly a long term investment.
Excellent post, very informative and thank you for the investment advice. I have been powering up with HF19 returns
Thank you. HF 19 has been a blessing and HF 20 will allow Steemit to grow much faster. Great times lay ahead.
Definitely, that why I am using all of my earnings into steem power
I'm still learning how all this works.
Here's a video from @craig-grant that will explain Steem Power and voting structure.
https://steemit.com/steem/@craig-grant/steem-rewards-strategy
He's got a lot of great videos. There's one where he goes in depth about the differences of Steem, Steem Backed Dollars and Steem Power. There's a ton of great information out there in older posts that really speeds up the learning curve. Hope this helps!
Makes you think! You are damned if you do and Damned if you don't. Do you trade voting power for the potential of making more in the long run? Or do you Go for the long hall to make more on your Steem. It definitely is a personal chioce.
If you see how many are joining steemit a day now, I think you would want to go for the long run. As the platform gets more popular, the more Steem will increase in value.
Great post!
Thank you! Steemit is growing by leaps and bounds. HF 20 will make the sign up process much more efficient allowing Steemit to grow even faster.
Any idea when hf 20 will be ?
I imagine it would occur some time later this year. You can check in on @dragosroua from time to time. He's always on top of things of this nature.
Great post very interesting..upvote and resteemed
The more Steem we collectively hold in Steem Power dilutes the pool of liquid Steem available at market and will force the price of Steem higher in the future. Thanks for the upvote and resteem!
Love it! Resteemed!
Thank you. Much appreciated!
Just my thoughts, I mean look at the amount of crashes going on. Steem has been gaining momentum - steadily? I want to use the word steadily but it's been real quick as to compared to counters like Verge.
I too believe Steem power is one of the better alternatives for when the market eases out in the long term. It ain't fast cash but its cash worth making. I've not had this fun making something on the side for God knows how long. So I'd invest in steemit just because of that, because it's fun to be on this network.
I'm trying to spread the news to get everyone I know on this network. My headline though, THIS IS THE TIME TO LEAVE. When I say leave, I speak of their day jobs! haha Cheers!
#follow4follow
Thank you for the comment! One thing I ask myself when trying to find value in a crypto is "are people using it?" I know I might be over simplifying things, but at the end of the day that's what it boils down to. Take the users away from Facebook and they're worth nothing. Steem just set the record for most transactions in a day on a block chain during the releasse of HF 19 on Tuesday, and along with Bitshares, are the 2 most transacted coins. That answers a lot of questions for me. People are using it, which shows it's solving a problem they have and they trust it. We're on the ground floor of something pretty special!
I wouldn't say ground floor cause I feel I'm flying! haha I am on the same page with you here. Steemit has a lot of ground to cover in terms of social network but it's looking strong even at this simple stage
very informative!!
Thank you!
It's really a great post...much descriptive..indeed steem power have great ROI..
Thank you! We're in on the ground floor. It's a great opportunity!
after all minnows..
good info ;)
Thank you!
i am ok with whales to power down in a smooth way. they invested in something experimental, and they have the right to earn. just don't tank the price and make everyone very afraid to invest in steem again.
A very enlightening post which makes perfect sense
I was only asking this question yesterday and this explains it very well
Thank you
Thank you. Glad this helped!
This is a great post and really deserves not just an upvote but a resteem. Thank You.
Thank you and much appreciated! :)
IDK. If whale powers down, then does gives other cryptopreneurs a chance to get those crypto and power up themselves. It does have limited supplies of crypto.
It's a simple matter of supply and demand. When the market is flooded with liquidity, the price falls, and vice versa. Steem has a built in 9.5% inflation rate that decreases by .5% every year until there are 600,000,000 Steem Tokens in circulation. The large power downs affect the price of Steem in short term, but as more and more users understand the value of holding Steem in Steem Power due to it's dual benefits of increased influence and rising Steem price, they will offset the power downs. Thanks for the comment!
I am a new user and I have been happy mainly commenting and up-voting. Is it healthy for steemit when we start figuring out that we can invest a little cash in steem power then basically vote ourselves a dividend on our investment every day? Balance between promoting good content which makes steemit more valuable, and just looking out for myself. Which will pay off better in the end?
That is the 64k question. The balance of helping the community and helping ones self each member has to figure out for themselves. The great thing about block chain is it's totally transparent, so over time the community can in essence "police" it's self. Here's a great post on this from @dan-atstarlite on that very subject. Thanks for the comment.
Thanks for the intro to Dan. I have followed him and watched several videos. Do I have it right though that the larger my investment in Steem Power, the larger more ability I have to vote myself an income?
Yes, you have that fact right :)
Maybe I am just really slow on the uptake here, but I'm starting to think that Steem Power is about to become pretty valuable.
Correct, the more Steem Power you have, the more influence you have. Influence meaning, your upvote is worth more. Steem Power is/will be a very valuable asset to own.
I love this idea. Can't wait to power up!
Steem Power is a daily dividend machine! Thanks for the comment.
Great info, I am new to Steemit but working on my Bachelor's Degree in Steemit!! LOL
Thank you and welcome to Steemit! There's a lot to learn but you'll quickly find the community here is very welcoming and will help in any way they can. There's a ton of incredibly valuable information from previous posts, which is where I learned the ropes. Here's a some great people to follow that will help speed up that Bachelor's Degree : @exyle , @worldclassplayer, @craig-grant , @kingscrown , @lukestokes, @dragosroua, @dan-atstarlite and @jerrybanfield. (@jerrybanfield has a great video on tax keeping which I feel every Steemian should watch.)
Thanks for taking the time to explain this, i signed up about a month ago and the learning curve is quite steep.
Very welcome and welcome to the community! I just posted some people to follow for @kingdomman that can help get you up to speed in no time. I know I'm forgetting some great members, but here's the list I gave him. All these users offer really informative content: @exyle , @worldclassplayer, @craig-grant , @kingscrown , @lukestokes, @dragosroua, @dan-atstarlite and @jerrybanfield. (@jerrybanfield has a great video on tax keeping which I feel every Steemian should watch.)
Welcome again to Steemit! :)
I'm bait fish, barely a minnow, but I can see an investment in the platform when it's right in front of me. Nice job highlighting it. I doubt I'll ever power down fully. Even if I ever get to be an orca.
Just keep plugging away and who knows, you might be the next @thejohalfiles. Here's a great post by @everittdmickey on how he made his ascension to dolphinville. :) He's one of the hardest working Steemians out there! Best of luck!
https://steemit.com/steemit/@everittdmickey/strategy-for-winning-big
Hahaha, thanks!
Have a nice day and a lot of money
UpVote from @burundel
(ᵔᴥᵔ)
Thank you and you as well!
Sweet post, thanks for info on this been reading loads on SP this helps fanks
Thank you. Loading up on Steem Power now will pay incredible dividends down the road.
Great article. If nothing ex and internal doesnt sabotage the system, we are to a pleasant ride together 😊🛀.
Good luck to the ceos and us all
Thank you. We're getting on the ride as it's just beginning. Exciting and prosperous times lay ahead.
great post..upvoted resteemed and followed u..
Thank you! Keep piling up that Steem Power! :)
This is a good post. Thanks for the research. Upvoted and resteemed!
Thank you and you're most welcome! If we grow as a community, there's no heights we can't reach.
Awesome post, I also have some solid faith long term. However as usual steemit has issues because of the ridiculous scam premine they held. This has been nothing but an ongoing recurring issue here since the beginning. However that being said it's also been getting progressively better since day one. Correct steps have been taken and steemit is doing better and better.
Still doesn't change the fact a lot of these Hf's have been the result of that first scammy premine that happened. If I could change one thing about steemit it would be how the damn tokens were distributed.
Interesting post. No investment bank or broker can offer you this much profit. Thanks for sharing.
Thank you! You can help others and yourself equally at the same time, kinda brilliant.
Great explanation! Things should start evening out as time goes on. The first few weeks are the getting into the new Steemit time. Thanks.
great insight into how to grow with steemit for the long run.. thanks @orionschariot
You're most welcome! :)
Excellent information, my friend
Thank you. Glad you found it of value!
awesome article, very informative !!
Question... should i transfer all my steem from my account on bittrex over here to steemit?
That's a great question and I feel that's a personal decision that everyone has to make regarding what to do with their money. I feel for my money, there simply is no better place than Steem Power. Other's might feel very different. Thank you for the comment and kind words! Steem on!
I can repect that fully. Ive just watched a few vids explaining the $$ behind STEEM and STEEM power and it all makes sense for the most part now. i think it all comes down to how much you believe in this platform. You seem to have a lot of faith! I do aswell. i will make some wallet adjustments after i blog on how to lesrn about steem moneys :D
Cheers!
Yes, belief is truly the deciding factor. You can do all the research and preparation, but at the end of the day belief is what will lead your actions. Great comment!
I enjoyed your analogy about opportunity. It's very true. If you think you have an investment that's going to be a 100(x) bagger, then for that to add up mathematically, 99 people out of 100 are going to call you crazy.
Thank you! Yes, it's very true. We have to make our own luck in this life. :)
I think there is soo much potential in the site for the future so Im trying to really commit myself to it!
Good post, thank you !
This all sounds interesting for a newbie like myself aka a minnow, but I haven't really earned much yet to get to play that influence game. However I have been on social media long enough to know and sense a true opportunity when it knocks :) hopefully whatever I dish out here is well accepted by the community enough to someday reach payout. We shall see!
Nice post by the way even though its true relevance will never affect me until such a time to actually play the Steem Power game. I care not to pay for my Steem Power until my posts get somewhere pretty much, but that's just me.
Thank you so much for this post. It helps newbies like me alot to understand everything better. I am reading and learning everyday :-)
Interesting post. Interesting to see I'm not the only one that is thinking about this. The crypto space brings the biggest group of uneducated investors with it. This group will only grow. We really need more insights in the market and previous investment results. Does anyone know about: https://www.coincheckup.com The site lets you check all there is to know about the team, product, communication transparency, advisors and investment statistics on every crypto. For example: https://www.coincheckup.com/coins/Steem#analysis For a complete Steem Report
Thank you so much - genuinely helpful - I was about to write a post about whether HODLing steem power was a legitimate and practically useful alternative to simply holding steem. I wondered whether there was any form of depreciation of steem power vs steem as it's transfered back (powered down I think is what you call it) The practical use of it that you've highlighted here is extraordinary. That's quite something. And i didn't know you could upvote yourself. Isn't that like a money machine? So, curation, upvote and spread some cash to others, and also to yourself. That does sound good really.
And i started powering all i had to steempower, i didnt even know what an investment it was. Thanks for the insight! Am steempowering all.