Vlog 359: Personal preparations for a long bear market even though it might not happen.
With the markets in uncertain times and myself living of crypto it is important to also turn down my living expenses even though it's not 100% necessary yet.
I'm basically preparing myself already for a long bear market even though it might not happen.
Why?
Because it's just the smart thing to do.
Hoping for a turn around is great but preparing for the worst is way smarter.
Selling crypto to Fiat in December/January was a key move that I am now so grateful for.
It's buying me (a lot) of time.
Now I don't spend much money in general but it has increased somewhat with crypto going up so much last year.
But mostly it has increased on the 'fun' side. Going out for food and drinks for example, I have not accumulated any debt of any kind.
So my expenses can easily be toned down.
I also want to have as much fiat as possible to buy more if (and it's a big if) we really see a turn for the worst.
I'm still looking to buy more STEEM, I bought 5000SP the other day and buying slowly every day.
Again. All that matters to me is how much my Steempower can generate not what it's worth.
I talk about it more in my vlog.
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Morning @exyle
Please would you explain again how more Steem Power means you earn more Steem?
Is this true if you don't self vote?
How much is the difference when we're talking small numbers, say 1000, 2000 and 5000 Steem Power?
How do you live off Steem without powering down? Are you saying, for example, you have 100K SP and you make more every day, say 80 SP, so you power down a portion of that 80 to live on whilst the remainder adds to you 100K to keep building you to 150K.
Thank you for your help. 😊
Steem power is pretty linear.
So in theory someone with a 1000SP should make half the SP as someone with 2000SP.
Of course because this is DPOS (delegated proof of stake) if the 1000SP person brings more value to the platform than the 2000SP person it can be that the 1000SP makes more STEEM because he gets more upvotes from people that have even more SP.
That's what makes this place fun. But adding this 'extra' value has become increasingly difficult as it should. Everyone can blog about something but not everyone can add value.
I know my content is not life changing that's why I have and still are stacking STEEM. The people that bring the real value currently are developers in my opinion (dlive, dtube, steem monsters) and you slowly see more rewards flowing in their direction.
But if you purely look at generate power of the SP than it's linear. (aka self vote 10x a day).
Half of the rewards is paid in liquid form. You can choose to sell that to live off. I don't, I power everything up at the moment.
I believe that everything I power up today will be way more valuable in the future. Especially when it will get a new use case when SMT's come out.
You forget to mention the more VEST you have the more interest you receive passively.
Do you know what the rate is @chesatochi? And why doesn't it show in the savings area or is that something different? 😊
For each Mvest you have under your account, you get around 0.001 of Steem Power every hour without doing anything, the magic of a cool passive income in the crypto world!
Ooooo. I love the sound of that @chesatochi.
Do we get more when the price of Steem is higher?
No, the interest is payable from the inflation mechanism of Steem blockchain.
OK. Thank you @exyle.
I thought I might be missing something with regard how more Steem Power means you earn more Steem, but it is as I thought! 😁
Have a fun day!
Awesome question Gillian!
Mark @exyle I know in my heart of hearts that we will be just fine. I know that lots of people come and go on Steemit and the way I look at it is that it is a good thing. People that hang out for a few Months get a little bit of Steem Power and then they quit Steem and they may forget about coming back or lose their password and that is what locks away lots of STEEM that may not come back into the system............
@stokjockey It is the ones who stick it out like us who will win the the long. Laser-like focus on the end goal is what we need to succeed 💪🏻
Posted using Partiko iOS
there should be a plan and you are doing right in that direction seems like the time like december 2017 will not come again but anything could happen in this market long bear market is like a panic now too much frustration for investors
This downtrend is the first from me. I am getting desperate and I am smelling blood in the water.
The truth is that I came to this platform without a cent in my pocket. TAll I have in my wallet here is what I have earned here. All Steem tokens have been earned here on this platform by spending eighth hours a day. I invested time here because I had no money to spend.
One thing is for sure that I am not selling because it feels a little bit like a betrayal. I know its not the 'right' kind of feeling but it is what it is. I doubt that I'll sell my steem under the hundred dollar mark. Five years, ten years, I don't know...... maybe never. I came here without a cent in my pocket and I am willing to leave without any.
Steemit has been great and although there may be some pressure building for this selloff to continue, I agree with what you're saying. I am hoping that future upgrades to Steem/Steemit will attract more people and increase the value of the platform. Who knows, maybe we'll see a repeat of 2017 and Steem will 10x by the end of the year.
There is that possibility as well. the swings are wild here, both upwards and downwards :-)
If you are willing to wait that long you will be fine. I'm not desperate. It is what it is. Just making some chances to ride out the storm.
Its a pretty logical strategy that you shared. I think at the end of the day, a man just has to do what needs to be done. Gotta look out for ourselves and have a balance with the system at the same time.
It is important to spread the risk and always to have a plan B.
It is important
To spread the risk and always
To have a plan B.
- chesatochi
I'm a bot. I detect haiku.
yes!
Honest as always.
You've made great points Exyle.
People are powering down because they don't earn enough. And the price goes lower and more people are powering down. It's a shame. It has much potential but Bitcoin drags everything down. We have to wait this out. Good luck!
Man, yes: you are right being cautious, and I do not only upvote you in order to support you making a living from crypto 😉, but also because of your precious advice: hope for the best, prepare for the worst.
Is wise to be prepared for that scenario even though it might not happen. The market is so volatil. Glad you are still powering up
It is always prudent to cut back on expenses in uncertain times. I am very critical of how and where I spend my money and I need to get value for my money. I would love to buy more steem, but circumstances right now won't allow it...
That’s exactly what everyone should be doing. I do that as well. In good times, prepare for bad times. Unfortunately, in good times people don’t want to even think about possibility of bad times coming. Then, they are in panic when it gets really bad. You do the right thing and I’ve been doing it for some time already as well. Not only related to crypto, I mean overall.
Prepare for worst and hope for the best!