The cheaper Steem gets the more attractive it becomes
Steem is one of the only platforms in the entire ecosystem which enables a purchaser to buy it (covert it to Steem Power) and delegate that Steem Power to gain "passive income". Passive income is the slow consistent income which provides for stability in times of volatility. For example SmartSteem offers a calculator. As you can see by delegating your Steem Power you can achieve the passive income and even use some of it to buy even more Steem for compounding.
For instance:
If you have 50,000 Steem Power and you delegate it right now you will receive currently around $740 a month!.
Of course if you have 100,000 Steem Power and you delegate that you will receive $1481 a month!.
When Steem Power is $1.50 that means for $150,000 you can acquire 100,000 Steem Power.
Now consider Steem is paying a whopping 10% interest on Steem Power!! 10% of $150,000 is $15, 000 a year which is 15000/12 = $1250 per month!. In other words Steem currently gives more than 10% interest. What other investment in stocks, in crypto, anywhere, can pay a dividend of 10% and have so much room to grow?
Note: This is not investment advice, so make your own decisions after you collect and analyze the information provided.
Buying Steem Power is a high reward medium risk investment right now in my opinion
- Yes the price of Steem can go down.
- Yes Steem could face competition from EOS.
- The price of Steem can also go back up, way up. As no other token in this space pays a 10%+ interest just to hold it.
- The price of Steem going up means the payouts in Steem from curation also go up. So that would be like seeing the principal of the stock go up along with the dividend.
Unfortunately I don't have a million dollar to put into Steem. I wish I did. I see SMTs taking the price of Steem much higher in the future and I see this 10% interest for delegating Steem Power staying around for years along with more opportunities in SMTs which could grow the pie.
excellent article as always Dana. I have around 11k SP but i prefer to upvote and do my own curation. But i can surely try out by delegating some SP. Regards Nainaz.
It all depends on whether you have more money than time or more time than money. The other thing is when you lease your Steem Power you get paid right away. When you upvote yourself it goes into different percentages of this or that making it harder to calculate. It might not even be liquid.
So receiving daily payouts in SBD which you immediately sell is a lot easier at times.
Thanks a lot for this amazing information, the future of steem is bright and this I see. I’m sticking with steem and dedicated will I remain to preaching the good news of steem around Campuses with my team .
I wish I had a million dollars too, then I’d change my life by investing in steem. Thanks once again for this amazing educative information
the best thing about investing in steempower is that you can make a profit with the curatorship and when you want them you can withdraw your investment with power down although that is not the idea.
I am studying the possibility of leasing steempower I am new in steemit I am studying the system to be able to extract some profit.
the best thing about investing in steempower is that you can make a profit with the curatorship and when you want them you can withdraw your investment with power down although that is not the idea.
I am studying the possibility of leasing steempower I am new in steemit I am studying the system to be able to extract some profit.
Leasing Steem Power is far more effective. No one knows what profit they can get from Powering Down but if you can get the profit without having to Power Down?! Well now you're getting interest at 10% without having to do the curation.
how good. It hurts you do not have 1 million to invest and see a good profit on the cake when the steem goes up.
You're not seeing wrong at all. I can't really delegate the meagre SP I have but am definitely taking your adivce to stock up on SP. I don't really look at steem from a business perspective anyways, at least not yet
Yeah, I recently powered up most of the little amount of Steem I have. Before I read that and without to know the exact figures. Thanks, Dana, useful as usual your article is.
great math sharing here. i love hearing from people who also see it this way. for me it's an investment for my future. i don't have a lot of extra cash to put any into steem, but through posting, curating, commenting etc over the past 6 months ive been able to earn over 2,000 SP. i'm holding that for the long run for the exact reasons you state! thanks!
Great post.
Informative article! Doing some calculations of my own haha. I'm very new to Steemit and it seems to be going well so far, despite the drop. I guess this is where the opportunities are!
I am somewhat new to Steemit as well, but the possibilities sure are intriguing.
I would like to buy some steem, but I am a bit short on money at the moment. I only have 25 steem power to boot. I still have a long way to go.
My boyfriend always asks me why I don't just cash out my crypto and not take the risk that it's all going to go away. The reality is that I don't have the money to invest in more stuff, but I did have the money to invest in the amount I have now, and I work hard for the STEEM I get on here. (Yes, I actually followed the advice everyone gets--don't invest more than you can afford to lose.) The way I look at it, the amount of crypto I have in my Blockfolio and the amount of STEEM I have on here isn't enough to change my life. But it does have the potential to change my life one day, no matter how slight it is. If I had more disposable income, I would invest a bit in STEEM right now--again, not more than I'm comfortable losing. There's plenty of money in the crypto market, and STEEM is very liquid relative to most cryptos since it's been around so long. All you need is for a tiny fraction of the money invested in shitty altcoins that aren't going anywhere to move into STEEM and we'll have a much higher market cap, and people are getting sick of those projects that looked promising in December and January and ended up being empty promises.
Good on you for investing more--I wish you all the best of luck. Wish I could join you on it!
I believe in diversification. I also believe in taking calculated risks. Steem in my opinion with 1 million users has the potential to be around as long as Reddit and similar sites. Steem is also not a crypto which is likely to be banned due to the excessive transparency. Steem is also the most bank like because it offers account recovery and when there was a hacking incident in the past the developers proved they'll "do the right thing" putting ethical concerns about rigid notions of "code is law".
I'm not in a position to invest more but I've not powered down in a long while. People who say get out of crypto usually don't tell you a better place to put it. What stock is giving out 10% dividend with less risk than Steem? If they can find it I'll gladly invest in that.
Excellent post! I always wondered, but have not taken the time to look into this avenue. Thanks!!
That's it if I had the money to invest I sure would until then I have to be happy with a few dollars a week 💯🐒
Nice explanation you have there! Wow i would love to have 50K SP hahahaha
But for now, Im delegating to grow as well as keeping enough for manual exposure. I guess this will be key for a simple blogger like myself hahaha
THX!
It's a good time to buy in during the dip, and you are quite correct in this article holding Steem Power has the long term benefit of growing while you are holding it.
What you can do with that Steem Power holding is even more versatile, earning from delegation as you mention - but you can also delegate to support community projects or just make use of the upvote value your Steem Power gives you to support your favourite content creators and encourage small but growing accounts.
#thealliance #witness