This is a very important concept, especially for new users and users with a small following which I believe are the future of this platform. I'll start it off with a story...
Learn From My Mistakes
I first learned about Bitcoin in the summer of 2012. At the time the going rate was around $5 - $10. I decided to try mining them on my desktop computer and successfully mined ~0.025 over the course of a couple of days. At that point I thought - it's not worth the slightly higher electric bill and risk of burning out my CPU to continue doing this since I would only make about $10 / month - so I stopped and went on with my life.
The mistake that I made, which has now probably cost me tens of thousands of dollars, was that I did not know how to properly value the mining rewards.
Fast Forward to STEEM
Now it's 2017 and I'm finally getting back in the cryptocurrency game, and I've come across STEEM. I've had some good success with my posts with some earning over $20 in rewards. I spend around an hour writing a post such as this one (my process involves outlining my writing points, filling in the details and then proofreading - yes I know proofreading can be a strange concept for some - and then re-writing parts that I feel didn't come out right or were confusing the first time around). Anyway I digress...an hour per post, plus say $10 of promotion, yields perhaps $20 in rewards, for a net profit of $10 / hour.
$10 / hour is not worth it for my time. If that's really what I was getting here, I wouldn't be posting, and you wouldn't be reading this. What I'm getting is not $10 / hour - but $10 worth of STEEM / hour. That's a BIG difference. Let me say it again - I'm not getting $10 / hour, I'm getting $10 worth of STEEM / hour.
This is exactly the same thing that was happening with my Bitcoin mining story above - I wasn't getting $10 / month from mining. I was getting $10 worth of Bitcoin / month from mining. At the time $10 worth of Bitcoin was about 1 Bitcoin. But I didn't realize that. I just looked at the dollar amount.
How to Value SteemIt Reward Payouts
So let's get to the point here - how should we value the reward payouts? The key is to ignore the $ and focus on what you're really getting - STEEM. STEEM is a very new (in the grand scheme of things) and relatively scarce asset. Like Bitcoin many years ago, the world is only very slowly starting to realize what it is really worth. If you're here then you probably see the value in STEEM and you know there is a good chance it can increase in value by leaps and bounds over the next few years.
Value your rewards by what they can be - not what they are worth right now. Even if you only make a fraction of a STEEM per post, think not about the fact that it's currently worth only a fraction of a dollar, but about how much it could be worth years from now if STEEM succeeds in becoming what we all believe it can be.
A few years in the future it will be SO much harder to get even a fraction of 1 STEEM than it is right now. Sad that your upvote only adds $0.01 of value? Remember to ignore the $! You're getting 0.01 worth of STEEM! If STEEM becomes valued at what a Bitcoin is today then that 0.01 upvote would be worth about $40!
There are a lot of posts on here that talk about how hard it is for newbies/minnows to earn rewards, just like I thought it was too hard for me to mine Bitcoin in 2012. But if you look at it this way it's actually incredibly easy to earn rewards right now on SteemIt. Just imagine every $0.01 you see as 0.01 BTC and you'll understand how easy it really is right now.
Let's Get the Word Out!
If we want STEEM to be worth as much as a Bitcoin is now, and our $0.01 upvotes to be worth $40, we need to get the word out! Not just for getting new users on the platform, but for making sure they know how to value their rewards properly. Otherwise they will be unhappy with the dollar amounts they are seeing and quit just like I did 5 years ago. Let's make sure all of the new and current users know how valuable STEEM can be, and how easy it is to get it!
Very motivating post for all new Steemians and also the ones that have been around longer. Every little reward is bigger than nothing. Persistence and patience are very important here! Thanks.
Great post.
Thanks! Here's $0.01 worth of STEEM for you - who knows what it will be worth a few years from now!
thanks for this post, I got about 26 stories posted mostly random stuff, and I get buried so fast, its discouraging since a lot of the stuff is not original content, I been upvoteing stuff that is original hope to catch a good wave to keep me from getting discouraged. any tips? going to follow you it was a really good read!
Welcome @spacetrucker! Here's one thing to help you not get discouraged - you got 0.5 STEEM Power for free just for creating your account! This is likely going to go away with the next update so you already got something that people in the near future will wish they got. Again - imagine a future where STEEM is valued like a Bitcoin is now...suddenly that free STEEM you got is looking pretty awesome!
I love this post. And @spacetrucker, just keep on writing. If you love it, form relationships with other bloggers here, and accumulate the STEEM. If you believe in the longevity of the platform, power it up.
STEEM is down in value and I believe will be worth more in the future. How much more? I really don't know. But the idea of STEEM instead of $ is a great one.
thanks for the reply. I have had a lot of positive people steer me in the right direction thank you for your help.
Thanks for helping put this all into perspective. It's true that we have something much more valuable in the long run if we can look past the little stuff today. I'm in it for the long term value! Thanks again!!
@yabapmatt , very intelligent point of view. We are earning STEEM rewards that we believe they will be worth a lot more in the next few years. @gold84
@oldtimer , thanks for your upvote. I checked your posts and now I started to follow you. @gold84
Such a smart, inspiring post!Just makes me want to keep on going, it's so true, time spent here is not the same time we spend anywhere else, it worth so much more.Hopefully in the future Steem will rise like a Phoenix hehehe
Nice, I like your idea of outline, filling in, and proofreading, good post!
Thanks - I'm happy to see someone comment about that part specifically since it was tangential to the rest of the post. I'm thinking about writing another post about how to write good posts - if SteemIt can also be a learning platform for improving writing quality that can really help the overall value of the platform.
Love your post here because I think of the rewards the same way! I found your post from your comment on upvotable 34 and am including this in upvotable 35 along with a tip!
super post.
This is a great way to think about it, but there is also the opposite - our upvotes and earnings may be worth far, FAR less (trending to $0) if Steem / Steemit fail.
But that is the bet we're taking. All depends on how much risk you want to take off the table (SBD -> STEEM -> BTC -> USD) and how much you want to double down on the platform (SBD -> STEEM -> POWER UP).
~ Kevin
Yes absolutely - that's a very important point which I debated including in my post but decided not to in the end. There is absolutely no guarantee that STEEM's value will go up and it could very well go down to $0. It all comes down to what each person thinks the chances are that it will increase significantly and if they consider that a worthwhile bet. As the saying goes - no risk, no reward!
Truer words never spoken :) - thanks again for writing this piece!
I just want to point out that you can't compare the Bitcoin price to the Steem price dollar for dollar. Since there is a different number of coins. Just like you can't compare stock prices on a dollar basis. If Steem went to $4000 then it would actually be over 17x bigger than Bitcoin.
The current market cap of Steem is $278 million and the market cap of Bitcoin is $64310 million. So Bitcoin is worth roughly 230x more than Steem. So if Steem goes from $1 to $233 then it will be the same value as Bitcoin.
So that $0.01 of Steem would actually be worth $2.33
Yes you are correct - I was embellishing a bit (ok maybe a lot!) in my post for effect. It's extremely unlikely that STEEM would ever be worth even $1k each let alone $4k. Even if STEEM goes to a much more conservative value of $10 one day that still means if I am making $10 / post now it will end up being $100 / post at that point which is still well worth it, at least to me.
Thanks for posting and keeping me in check though - it's good that we all remain realistic.
I totally agree with you though and the reason I know the math ;) We are at the very early stages. Thanks for the great post.
@yabapmatt got you a $7.63 @minnowbooster upgoat, nice! (Image: pixabay.com)
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Normally I don't reading a full post , but I enjoy with your one, good post and I agree with you , @yabapmatt , follow you and resteemit
This post has received a 14.96 % upvote from @booster thanks to: @yabapmatt.
Upvoted and resteemed for my followers. Spot on.
Thanks @oldtimer! BTW my son loves the squirrel from ice age!
Me too. Thanks.
Great post! Totally puts Steem in perspective for the long haul. Thanks for sharing this!
You make a real awesome point ! Nice post :)
Yes, this does resonate with me. In an age of instant gratification (and the need for instant payouts, this mechanism thrives. Well, human nature isn't going away anytime soon, so... Thanks for a great post!
Truer words has never been spoken. I had $0.40 of dash given to me a couple of years ago which is now worth $20. Hold the core cryptos and youll never go wrong.
Damn that right! I agree to what you saying about. It will takes time but worth to do.
Your neighbor, @cryptonewz
good post
Man im really enjoying steemit in terms of learning new things through blogs whilst also uploading my content from my yt channel! But this post has made me think a little more deeper in terms of steem and its value. nice post!!
very inspiring
Great post. For minnows, it is indeed hard to get attention as well as the upvotes. Gotta stay resilient and keep on Steeming. I gotta believe that the accumulation of Steem is worth my time and energy, it is a long term investment anyway.
Good message and absolutely spot-on perspective. There's broader value that took me a while to realize.
Thanks for the info and mindset change....will view the $ less, and the future value more! :)
Yrs I like it....
This is so true, I joined Steemit last year but never became active because none of my family or friends would join me. If I had any brains I could have been in on the ground floor of Steemit and made a lot of value early on. But that doesn't mean that the time for growing value is over, Steemit is still relatively new and fresh and it has a huge amount of growth potential! I'm investing in Steemit for a better retirement in the future, and because I'm making some new friends and learning a ton of new things. There are some great bloggers on this platform and it can only get better over time.
Hi @yabapmatt! @jerrybanfield is sending you 10.0 SBD tip and @tipU upvote
:)
@tipU - send tips by writing tip! in the comment, get share of the profit :)You nailed it!
oldtimer always support others