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.