See Saw, Up and Down: The Steem Economy!
I was happy and sad at the same time, happy because the price had risen but sad because I missed the opportunity to invest.
Over a couple of hours Steem has been on the green side trying to rise again but I am enjoying the down times because I do not have fiat to invest right now . Now am sure someone may be wondering how on earth I should be enjoying the downtime of Steem, well let me take a few minutes to tell you why.
If you do not have funds to invest in Steem, downtime should be the time to do more work because the Steem component of your post rewards will be increased and you have the chance to accumulate more SP than usual.
When you earn on your post, the pending payout now referred to by some entities on this block chain as Steem Token Unit(STU) is divided 50% 50% after curation. 50% will be paid out to you in liquid SBD and 50% in SP this am sure you already know.
You have seen that the SBD and SP component always vary significantly even when the price of steem and SBD are very close in the external markets. The reason is that, SBD as an internal token on this platform is pegged against the US dollar at the rate of 1:1 hence it is more like the US Dollar Tether for the Steem blockchain.
This means that the system calculates your SP rewards against SBD at 1 dollar. What does this mean? It means that when you for example have a $30 payout after curation, you will earn 15 SBD but the other 15 will be converted to SP at its current price. So lets assume Steem is $5 at the time of your payout, your 15 SBD component will be converted into 3 SP hence you get 15 SBD and 3 SP.
However, if Steem price was to be $1 for our current scenario, you would be earning 15 SBD and 15 SP. Of course this will be less in USD but you get to keep it against a price rise in the future.
This means downtime is not exactly the time to cry as a minnow, it is the time to do more and earn more SP. If you didn't know, it is the best time the bid bots turn up profits. You can use the analysis above to see how this is true.
Yes that’s a great idea and writing. Personally, I am not bothering about steem down. Because, I believe there is a long way to go for steemit. Steemit will be the leading social media in course of time and if steem price is going to 50, nothing to be astonished.
Downswings in price are the best time to get your content noticed as a minnow/plankton like me - less people use Steem as a general rule and thus less 'competition' for exposure.
Anyway its a long term investment and the price will eventually rise again!
I believe that the long-term success of Steemit and by extension, the community at large, will rest upon the quality created content, effective curration, and ropbust community engagement. The promise of Steemit is that it is intended, unlike other leading social media platforms, to offer a positive experience in the discovery and sharing of unique content and where the participants in these interactions have an opportunity to reapply financial benefits. The other selling point is that it designed to guard against excessive censorship. Hence, I it far wiser to build one's wealth over time instead of seeking to acquire short-term profits.
Steemit and the Steem blockchain have emerged from fairly new technologies and as such, volatility and various growth pains should be expected. With this in mind, it would seem that a gradual and sustained increase in the price of Steem would be a far more desirable scenario. That is to say, a low enough price can attract some additional investment but hopefully discourage the 'punp and dump' crowd, and allow those investments to earn significant value over time. I readily admit that I am no financial expert but for me it does seem to be a more viable course to follow.
Thanks for your post.
Thanks much for you insightful and detailed review, I agree with your submission and it also shows we all have a role to play make this platform attractive to new comers and outsiders!
Thanks for taking the time to respond to my comments. I would be particularly interested in hearing some of your ideas on how you think Steemit can be made more attractive to the general public, i.e., those who are not experts in the world of cryptocurrencies and investing. Additionally, what type of incentives do you think would motivate new members to Steemit to consistently produce quality content and maintain constructive interactions with other community members? Thanks again for your time and have a great day.
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 upvote this reply.