The reason to stockpile Steem (for SP) right now

in #steem6 years ago

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.

Sort:  

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.

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!

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!

To listen to the audio version of this article click on the play image.

Brought to you by @tts. If you find it useful please consider upvoting this reply.

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.

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.

Coin Marketplace

STEEM 0.35
TRX 0.12
JST 0.040
BTC 70597.89
ETH 3559.60
USDT 1.00
SBD 4.77