I was struck by this simple thought this morning.
A stockholder of a company wants the company to maximize profit.
This doesn't work on the STEEM blockchain.
Why?
Well...there is no company and therefore there is no profit to be made.
Investing on a blockchain and especially the STEEM blockchain requires a completely different mindset.
On the Steem blockchain, there are no adds and there is no data to sell. There is no revenue model. The price of STEEM wouldn't go up because of profits because there is no profit to be made anywhere.
The market decides what STEEM is worth and nothing else.
But most would not invest in a block chain that doesn't have a potential for a return on investment (ROI).
So as a Steem power holder myself, how would I make an ROI?
Well, I benefit the most by the STEEM price going up. If the Steem price goes up $1 in value that means $87000 is added to the value of my account. I can't see any other way to make a faster profit than that when it comes to the Steem blockchain.
Maximizing that goal on Steemit is something I like to do because I believe this will benefit the Steem blockchain and all STEEM holders the most in the long run.
But there are other ways to make a profit.
Another way is to blog and comment and upvote those posts. I can upvote them for $12 each. It would return me $120 a day or $42720 a year. (at current Steem price). (ps. I don't do this)
Example: my account is currently worth $130000. So that last one would be a return of 32,9% a year. Which is high, but not extremely high.
Do I think such a return is fair for Steempower holders? Yes. Steem is a high-risk investment. It can all be gone tomorrow.
Yet there seems to be hatred against those who want to see a return on their investment. I don't understand why because from an investor's standpoint it makes perfect sense. And even though I don't do this I don't think this is unfair.
The main argument is that Steempower holders looking for an ROI are making sure that new users won't use the platform or effectively killing its growth.
I think that's nonsense because I know many successful social media platforms that a lot of people use where nobody makes anything.
I have never heard a Facebook user getting angry at a Facebook stockholder for making a profit.
Investors looking for ROI is just another way new STEEM is entering the STEEM blockchain.
If the person that 'creates' it doesn't want to keep it it will eventually flow into the hand of someone that wants to keep it.
My own mom is the most recent example of this. She bought 1500 STEEM and is holding it.
Future
I see the Steem blockchain as an upcoming social economic platform now.
For me, it will transcend blogging in the years to come. There will be room for businesses and many other endeavors. There will be lots of opportunities and they are up for grasps for the people that see them.
You can see this social economic platform slowly emerging. With websites being built offering goods and services for STEEM and Steem dollars. You can see it in the development of apps and different front ends that can be monetized.
This will only grow in the future. The time to invest in STEEM is now if you believe in this growth. Because the emerging social economic platform is what will make the Steem token go up in value, not the blogging.
Steempower holders will be the ones that have the power to create new tokens. Steem and Steemdollars will be used as a medium of exchange.
It's a game of opportunities and you either take it or not. It's not that often that you get a chance to be part of something that is so new and has this much potential.
Have a great day!
Bitcoin SwC Poker, download and use affiliate code: Blazin8888
It is true that the blockchain is a completely different system compared to the current structure that we use in society. It is not as if there are some commodity's steemit can sell to profit from. Its only commodity is steem which can either go up or down dictating if you make a loss or a profit.
The main driving force pushing up the price of steem is the community. We can see that steemit works and that it isn't a dodgy platform and many of us try to accumulate as much SP as we can.
I feel bad when I constantly self-upvote myself. I think that currently there aren't enough people curating to keep up with the massive rise in the number of posts and users
However, I guess you are right that many of us have used other social media platforms and forums and we haven't earned a penny from it and none of us though a massive fit if a shareholder makes profit while you earn nothing. That is just how social media platforms have worked for years.
In the future I do see steem prevailing and doing well. We have already seen things like DTube created where the concept is 100 times better than YouTube and I'm sure with more development will lead people to migrate to dtube rather than using youtube.
All of us have an amazing opportunity now. An opportunity where people in a couple of years time wish they could have. I 100% support steem but all I'd say is that this investment is like any other investment and only put in how much that you are willing to lose.
My goal is to get to 10,000 SP before steem starts growing rapidly. I hope you have a great day too @exyle! :)
It seems like people are currently in this rush of making as much money as possible for themselves but I think in general there is a negative stigma around it.
Despite the fact I see people self-upvote I don't think I would want it outlawed as people should be entitled to be able to get some sort of ROI from their money and as exyle said how users don't get angry with those who make money with facebook or twitter and I think it may take away a stimulus for people to buy SP.
Your voting power will reduce about 1.5% with the each next voting at 100% of upvote strength. regardless is it selfupvote, or not. So it means you will have chance to upvote yourself or someone else just 10 times, and then you will have to wait about a day to recover your voting power to 100%
Linear. It depends on persentage of upvoting (100% by default) So the each next upvote will cost less than previous. you can visit steemnow.com it is good service to check your current voting power. There is calculator that will show cost of upvote at different conditions.
You broke down and explained what the true nature of Steemit is in a very eloquent and easy to understand way. You have a natural gift of looking at things pragmatically and explaining the confusing and complicated in a way that even a layman can understand. Bravo brother.
I agree on all fronts, and this very topic is at the heart of quite a few conversations and squabbles presently. While I think them foolish and ideological, I know doubt some pushing this matter feel they are in the right and are doing what's best for the platform. But what you so brilliantly wrote explains what the essence of Steemit and Steem are. Together, they are social eceonomic financial instrument. One does not exist without the other. As soon as Steemit attached it's self to Steem, a currency, ideological dogma goes out the window. Great article brother! Re-Steemed.
Nice photo of you and Bianca! Steemit is a long term investment. Anyone getting in and thinking they will make a quick buck is not understanding how this works. I am a newbie here and I don't understand everything yet, but I do see the potential for growth here on Steemit. It is a good time to be here.
Agree with you. We are beginners and we don't understand everything. We are giving our best to write from the heart (and also comment something we believe in). We can only hope that people will recognize that. And you said one perfect sentence: "It is a good time to be here." Yes, it truly is.
How much steem powwr wouls i have to make 120 dollars a day thanks
85000
Thank you
Thank you
Steem in a wonderful investment in general. I do believe at some point there will be advertising on this platform. There are already people advertising their own businesses already here. Also, holders of steem power also earn interest on their deposits. I don't think it's enough to keep up with Steem inflation but it does add to your existing supply of steem.
Very true, Steem has got huge potential... Don't invest in Steem blockchain with the sole purpose of ROI ... Invest here with the long term perspective of building the eco-system, which will be rewarded heavily in future... Thanks @exyle for sharing the amazing insights of investing in Steem Blockchain.
Steem was the first crypto currency I got introduced in and despite all the clever heads saying '' don't put all your eggs in one basket" I decided to do just that with steem. While i only have 2500SP i am in the near future adding at least another 2500. I am not a rich person but steem got a lot of uses for me. I like blogging about my travel, I like the thought of investing in something early before it gets big. Plus I don't see steem should ever collapse. The community seems too healthy and too caring for it to ever happen. Worst case for me is steem will never rise but I still had a place to blog about my cycling travels :)
Win/win. Thanks for your perspective @exyle and I wish you best of luck in the future for steem!
Great attitude @holm, and you've got me interested in reading about your cycling adventures. That'd be so cool, to travel free and easy, and maybe introduce a few to steem along way. Alright, I'm off to get out your blog. Have an upvote.
Nice post, you seem to have a slightly more positive viewpoint of the future here on Steem than I do. One of the biggest challenges of Steem is integrating all the languages
so people all around the world can open accounts easily.
I like your big picture attitude. Steemit's potential is limitless.
I don't have a problem with anyone up voting themselves. They have earned or payed for that SP which they may use as they please. But if you spam crappy posts to do it then you should be flagged.
This is a fun social experiment :)
@exyle - Very well said. For a blockchain enterprise based solely on a social media platform, the value of it's tokens is what the market perceives it to be. If Steemit becomes more popular and getting to be a high reputation player on Steemit becomes a style icon, then certainly more and more people will get on Steemit and value of Steem will go up. This is the 'business promotion' activity we all need to engage in, apart from ensuring that the platform always presents good, authentic content.
Thanks for this post which explains the core of Steemit in simple language for us all to reinforce our understanding and commitment to Steemit. Upvoted
Regards,
Add's could (or maybe should) be sold for Steem/SBD to create more demand/value for the Steem tokens. The recieved Steem/SBD should then be divided between those who allow add's (by personal settings preference) in / besides there 'news'feed based on there SP or some other method!
Any thoughts about this @exyle ?
Steem is not an overnight success or the medium of immediate ROI, rather it is medium of consistent ROI over the years plus an extra if you upvote and curate content with some skills. I have invested in Steem and going to invest more in little dips because I know at some time in near future, it'll revolutionize the way of social media.
Steemit is the manifestation of future growth and the early adopters would be benefitted greatly.
BINGO !!! @exyle that is exactly my Thinking when it comes to the Future value of the STEEMIT Platform. There are many ways to invest your Money, I choose to gradually and consistently invest in myself. That means if I take dollar cost averaging approach to STEEM that I can buy more each week or each month or maybe every couple of months. The main thing is to be part of something that I think you and I believe, has a lot of Upside and very low downside at these levels. I think that owning STEEM now is like being able to go back 6 or 7 years when people were just getting into Bitcoin. Thank You for this post to remind me why I am a part of STEEMIT.
Great post sir, this post is surely a eye opener for false thinker's, we have a big example go back to 2010 when btc is so cheap and nobody knows it and look now it's almost touching 5000$, so the peoples who buy btc at its early phase now they are millionaires, same thing with steem yes this is the right time to buy steem and hold it, Steemit is not a hyip program nor a trading platform it's an emerging social media plateform where peoples share their thoughts and experience and by doing this they can make some money, Steempower holders who are looking for an ROI i think they are in wrong place bcoz steemit no where promise that they give some kind of fixed ROI. thanks for sharing sir.
For me, the system of self-upvoting seems to be a bit broken. Maybe I am jealous because I just started and cannot do it myself, but I strongly believe that self-upvoting should be somehow regulated, so it would not be overused.
There are many ways to do it :
Maybe I am wrong, just thinking out loud.
I think it is a debate: EQUALITY vs EQUITY
Not all of us are able to invest the amount invested by @exyle and further not all of us are able to write good posts and to win more than 100 STEEM per post.
So anyone is going to upvote me and in order to growth I have to use the upvote power (as little as I have) fist for my self than for the others. The problem in my opinion is not the fact how much self upvoting gave to you. For me is better if the self upvoting is linked with reputation. When you have a low reputation no one knows you and you need your upvoting for yourself but when you go bigger in reputation and you learn posting or curation you don't need anymore self upvoting. For exmaple if your reputation is under 50 than your self upvoting gave you 100% of upvoting value, if your reputation is from 50 - 70 your self upvoting gave you anly 50% of the upvoting value and if your reputation is highter than 70 your self upvoting power gave you no values but you still me have the self upvoting in order to place your post or comment in a higher level.
Maybe I wrong but I think that the uptoting system should have more equity
@jerrybanfield discussed self-votes in this post not long ago.
A controversial topic, but it is how the system works. Like @exyle said, why shouldn't those who are vested reap the rewards. Makes sense if you have a long-term mindset.
My 100% vote is worth about 0.08, but it was only 0.06 last week. If I keep publishing content and getting a few votes, it will go up. Now, if a whale votes it will go up much quicker. That's the beauty of the design.
The steem blockchain will lead the future especially when steemit becomes the future of social media in few years to come. We will start seeing progress after the implementation of HFork 20 . Just like you my bud, I am very passionate about steem ecosystem.
@exyle,
Perfect article and it explained a lots of "?" marks that I had! Thank you very much for sharing such great post with us! Really appreciate your effort!
(My voting power is still regenerating, therefore please allow me five more days to provide 100% upvotes for your posts)
Cheers~
Posting and commenting earns pennies for most of us. Growing steempower takes a serious investment in time which is the magic for poor folks who only have time to invest. These people are not looking for R.O.I. ,they need opportunity. Opportunity is the "product" for sale on this blockchain.
Never thought about steem this way before totally interesting model this is glad to have read this truly interesting this was and i thought everyone need to read this once
Excellent and thought provoking post @exyle! One day I think all companies might issue coins instead of stock, this would eliminate so many negative aspects of the currrent system of finance.
This is where you come to read sense and reason on Steemit. I guess you've had a look at JBs and perhaps @joseph and @mindhunters recent blogs.
People need to stop worrying about what others are doing and just get on with it - enjoying what they do and watching their investment of time and fiat into the platform grow.
The way you talk about the Steem blockchain in the future is great to hear for the community, and everyone should be reading this today!
Cheers
Asher
(RS!)
I completely agree with you, its whole new mindset. I think its actually a GOOD thing that people want to profit from steem, it keep steem relevant and drives people away from networks like facebook. The more people we drive to platforms like steemit, the more valuable steem becomes. They may show up here for philosophical reasons, or for profit reasons, but either way - we are growing the ecosystem!
I think steemit magnifies what's going on in people IRL.
Generally speaking we are taught to consume and use credit, and people are broke. Then they come here because they're told "blog and make money".
Then when they blog and don't make money, they look at those who have it like they should give them some, and investors become the bad guys, just like real life.
You're right, it takes a different mindset, but it looks to me like the same solution is applicable: get rid of the poverty mindset.
People are going to fail if they handle their steem like they handle their money. (Some will prosper doing this, but more will fail)
Does that make sense?
Already started to get evolved with the entire Steem atmosphere, but I can see a bright future for this cryptocoin and I plan to work on developing as much as I can my steemit.com account to see the full potential of this environment. Anyway, very interesting and informative post, thanks for the article. Much appreciated! 👍👍👍
To invest in steem is rather concervative investment approach, comparing with other altcoins. Aspecially, taking into account power-down sysytem, when you can get your money only in the certainly scheduled time period. But yes, I think from financial point of view steem-it really have potential. Due to delegating system it can be example of passive income. Due to blogging, curating and commenting it can be source of active income. And due to steem volatility it can be speculative instrument.
Steemit will be more awesome when we will reach a 10 million user and a 1000 developer in the next few years!
I wish steem can increase later... Steemit is a good platform to get information and know about people from all over the world. Let's believe in steem!
How is that not an ad?
There is a lot of profit to make on Steemit but it is above all a fantastic community of people passionate about crypto.
a very beautiful post, I want to place it. please apvote me too yes.
https://steemit.com/esteem/@jasonmunapasee/advantages-of-applications-esteem-2017828t111217813z
Thank you for sharing .
i see u in mirror
.
you very good person
This is a great post, I really like it. Hopefully the next post is better than this. Thank you for sharing And thank you too, if you have time, to see my post today about president of trump and the meaning of life and upvote and love it i am very grateful
Exactly.
My thoughts on solving the contention over self upvoting here.
(Past payout)
@exyle - Sire, love your post. I was thinking how Steem makes profit Sire. Your post answered my question Sire. Therefore, I wish to resteem this post Sire.
+W+ [UpVoted & ReSteemed]
Very happy Life and nice post.really enjoy.100% like and resteem
The best time to invest steem is now...
Great information sir. nice future plan.
upvote resteem
Excellent insights
Yes its pretty wise to hold SP
Good article. Very informative. Thanks.
Precisely. Very well said!
exelent
amigo #resteemia at your service
a best guidance why we need to hold steem. brilliant work @exyle
ReSteemia
'UpVote ReSteem Comment'
Minnows on the other hand can only invest their time and wait for the ROI
steemit is a good platform i hope it goes all the way up and never look back.
Very nice thoughtful post. Steemit is an investment and not a "get rich quick" scheme.
Excellent insight. Every steemian whale or minnow need to read and read when in doubt about the value of Steem. Resteemed and upvoted
schöne Zukunft👍
That what makes block chain unique in its own