Indeed, The Best Time For Powering Down And Sell Would Be Now
I have mentioned quite a few times on my blog that it would have been great for our Steem wallets to be private. This way not only that scammers might not find their targets that easy but we would avoid some whale ass licking from plankton and minnows as well. It's not about the use of Steem Power that I am going to ramble bamble a bit in this post though, but of wasting chances.
Talking wallets, I have to say that I am not an espionage fan of such Steem feature but once in a while my click goes to some user's wallets. I'm curious, what can I say. Out of curiosity I have noticed yesterday that a user that I was following and admiring for his Steemit success for a while, without being a good blogger I have to say, is powering down for a while.
In February 2018 when I joined Steemit he was having about 700-800 SP and since then he continued stacking. Now he has powered down almost all of his Steem and probably exchanged it... I don't know and I don't care. What I do know for sure is that it was a very bad bad decision in my opinion. One that he might regret a lot, in probably less than a year from now.
Don't get me wrong, I am not a power up fanatic, but I am trying to make the most out of my earned Steem, I haven't bought any coin from my own money. It's all earned through my posts. Now, if this guy would have thought to sell his earned Steem and to power down what he had as well and sell that too, a year ago, he could have sold... lets say 1000 Steem for an average price of $2 per coin. That would be around $2,000. Math...
Not too much but considering what type of posts he had/has and how much he'd spend to create them I can say that's easy money. Instead he HODLed like a champ for over a year and sold at less than 50 cents meaning that he only got about $500...for his work. Not too wise his decision, isn't it?
I know that nobody knew Steem will be 22 cents at some point in time after it was selling at $7 during the bull run but if you are in it for the money on this blogging platform then you should sell at some point, preferable not too close to the bottom. He could even sell some of his Steem during the bull run as well as he was already in the game by that time. He didn't, though...
As a conclusion I will say that, even in the case of Steem, one should have a strategy and decide whether he/she plays the Steem game for a long period of time when it doesn't matter that much the fluctuations of the market or if he/she wants to cash out some Steem once in a while. Choosing the second option you should know that the road to a $30 Steem will have its ups and downs and you better time your cash out pretty well to get the most out of your Steemit work.
I confess that I have a mixed long term/periodically cash out vision for Steem and I wouldn't hold all my Steem and not sell some if it gets over $5. Not all of it of course, but some I would definitely sell. I do appreciate real world money rewards as as much as I appreciate the cyrpto ones. I also kinda feel sorry for such users that held through the entire bull market and are selling now when we might have bottomed out, but I also have that ironic smile on my face saying: you full...
Thanks for attention and have a great day!
Adrian
Sometimes power downs are deceiving...
Many witnesses and dapps are powering down to cover costs. When I saw how many witnesses are powering down at the same time I was wondering "What the h*ll happened?", thinking they are jumping ship. But no, that's what they still do to survive, hopefully not for long, after MIRA will be launched.
I am also powering down...sort of. If you watch my main account (gadrian), I'm powering down. But all that SP automatically goes to a separate account without being liquidated at all. I simply move my SP to another account (and will delegate most of it back to my main account).
There can be various reasons to power down. It is indeed not the best choice to sell STEEM now. If one can avoid it, he/she should, because he/she will probably regret it later on.
I am aware that there are all sort of situations for one to power down, the case that I am talking about though is not of a witness or so. It's just an average guy like me that has hodled for that long and now has quit,probably, right before the next bull market. I am not entitled to decide the ideal price of selling Steem but right now I consider it to be a really bad timing. I think that even three months from now we will have a totally different price for Steem. Probably more than double. If I were in his place I would have sold long time ago when it was above $3. That's how I see it.
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Thanks
Great analysis of the situation @acesontop, the real gamechanger though would be if we could buy groceries and everything else we need to live with Steem.
It's a long way away from that now, but with the current growth of the dApps, it's certainly a start in that direction, and once project Mira and SMTs comes online the speed towards that will most likely pick up quite considerably.
Posted using Partiko Android
That would be great as well. However I would rather sell in cycles, once at two years or something, when the price is up and spend that cash for whatever I want rather than spending constantly my Steem no matter the price. If we would get to a certain point where we won't see it under $5-$6 then it would be an option for me as well to constantly spend it on groceries and other stuff that one could find online and buy using Steem not needing to wait until it gets up again. Otherwise I wouldn't. It's interesting to see what impact SMTs will have after all.
Agree, just to clearify though, I meant buying groceries in the store with Steem, where the store accepts them as payment natively.
For that to happen though it needs to grow way beyond $5, more like $5 million, or similar.
Just means we have a lot to do in order for that to happen, but that's my vision anyway.
Posted using Partiko Android
With $5 million a Steem I would get directly to Porsche. I think that in 10-15 years cryptos will become actual currencies and we will be able to spend them anywhere but not at the current prices. They're too cheap right now. The direction however is in that way.
I think you are right, but I would go for a Tesla instead.
Posted using Partiko Android
Take into account that if you plan to sell anytime, you have to be ready and 13 weeks is a long time to wait for...
Posted using Partiko iOS
I am aware of that. BUT if you have in mind to sell some of your SP you can start powering down once the price starts to climb constantly. That's how I see it in case someone wants to sell some of the SP as well.
Yes, that’s a good approach despite if we ever reach 10$ a Steem it would be for short time I guess...maybe for less than a week 😉
Posted using Partiko iOS
That might be true but the road towards $10 might take even half a year or more so there's plenty of time to power down some good percentage of it. You just have to decide a starting point when to power down. It's all about timing or it's just that I am considering myself superior in thinking once in a while when I probably shouldn't. That's how I would do, simply because like yourself, I don't think a big price for Steem would hold for much time. BUT of you have the Steem ready for action you can make the most out of it.