Profitability in blockchain technologies skyrocketed lately. The top 100 coins in terms of capitalization were having an increase of 18x. That's 1800% and that's not only about one coin. That's the average. Investing in cryptocurrencies is definitely very profitable and it will probably still be for a while. However, the market becomes more mature and new coins are released every day. That means that some coins will lose money because there are many coins which are simply pumped up.
When investing in cryptocurrencies there are a few factors to look for. The most important is in my opinion the value of a coin is the value it brings in real life. Some coins like bitcoin want to be the money of the future. Fine with that, but not all of them can be. Some others like ethereum and eos, are aiming to become a distributed computer of the world. Some others are simply clones and you should avoid that.
There are of course many cryptocoin investments that look appealing, but only time can tell if they are profitable or not. I have a few in my scope and steem is one of them. Just yesterday I invested 1800 Steems to upgrade my Steem Power to 2000 and I want to tell you why I think is a good investment.
Why Steem Power?
- First of all Steem Power pays you 90% interest rate. That's a form of dividends steemit pays you for investing in the platform. Practically each year you almost double your Steem Power by doing nothing. If you have let's say 3650 Steem Power, every day you'll earn 9 steems.
- When you own Steem Power you become part of steemit. Your weight is much more important. Your vote is more valuable. For example my vote now brings 72 steem cents. For each post I publish I earn 0.72 steem dollars. Every vote I give brings 0.72 steem dollars on that comment.
- It helps you grow faster. If your vote carries more, people will follow you. You simply grab attention when you up-vote a relevant comment. For example if I see a comment I like and I vote for it, there is a higher chance that people are following me.
- It makes you being more committed and more active on steemit. Ultimately it will not only bring you some more revenues, but also helps the platform being better.
How to invest in Steem Power?
You can use blocktrades to exchange any cryptocoins in steem coins, which are sent directly to your wallet. Blocktrades does not require you to create an account and the transfer is almost instant.
Then you can go to your wallet and power up:
Could you clarify how SP carries a 90% interest return? This would make it interesting to invest in it.
This is the designed feature of the network. The Steem coins have an inflation of 100%. 10 % is distributed among the steemit platform as rewards based on the voting system. The rest of 90% is distributed among the steem power holders.
Can you please explain what's inflation of a coin. Is it natural price increase of a coin. An example will be really helpful. Thanks!
steem power is a good long term investment, i could see steem hitting 100$ in the next 2 years, great platform and it will be bigger than reddit
It's even better, people are more motivated to contribute when they own some stake in steemit.
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