The benefits of investing with STEEM on the Steem Blockchain.
I wrote this article to be used outside of Steem. I want to learn how to write to the point for people not in the 'know' about Steem. It will take me some time to get it right, any feedback is welcome. This article I made because I can't for the life of me understand why anyone wouldn't want to have some staked STEEM in their portfolio. It comes with so many benefits, one of them being able to risk free invest in projects by delegating STEEM while keeping ownership. How different that is from ETH where you have to part with it to receive a token in return.
Staking STEEM.
When you stake STEEM (staked STEEM is called STEEMPOWER) you get access to so many benefits on the network.
For instance: You get more to say over the inflation distribution of new STEEM.
Staking STEEM is instant. Unstaking STEEM takes 13 weeks in instalments of 1/13 a week.
Staking STEEM offers options for a nice Return of Investment in STEEM or other tokens. It is probably one of the most underestimated benefits of STEEM in the crypto space.
You can use STEEMPOWER to invest risk free in projects by delegating, a process where you lend someone your STEEMPOWER but you never lose ownership.
1. More Resource Credits on the Network.
Transacting on the Steem Blockchain is free. THERE ARE NO FEES! But you need RC's (Resource Credits) to do so. The amount of RC's you have is dictated by the amount of STEEMPOWER you have.
RC's replenish over time.
Example: mine will be full in 2,5 days.
So, all you need is an amount of STEEMPOWER that is equal to your RC's usage on the network and you will be to transact always for free.
You can add more STEEMPOWER if you need more RC's and you can un-stake some (and sell it) if you have too much.
Or even better you can use the leftover STEEMPOWER to invest:
2. Ability to invest risk free by delegating to projects on the blockchain.
It is possible to delegate your STEEMPOWER to other accounts.
The ownership of the STEEMPOWER stays with you while you allow others to use your STEEMPOWER.
Example:
I have delegated a 1000 SP to a project called @steemhunt.
In return they have given me 400-500 HUNT tokens every week.
HUNT tokens recently sold for $0,02 in two different IEO's (Initial Exchange offerings).
I could take back my 1000 SP at any time. It's still mine.
Now that's safe investing!
Example 2:
My dad is a passive investor in STEEM. He has delegated his STEEMPOWER to @smartsteem and @therising. He's looking to make about ~15% ROI in STEEM (1000 STEEM --> 1150 STEEM) this year passively.
The ownership of the STEEM is always in his hands.
3. More say of the distribution of the inflation and governance of the platform.
Staking STEEM makes you an investor in the platform in more ways than just economically.
It gives you more say over the distribution of the inflation of new STEEM and it gives you more say over who governs the platform.
When voting for witnesses (block producers) for instance voting from highly invested accounts count heavier than smaller invested accounts. The weight of your vote counts even if you have delegated all your STEEMPOWER.
Voting for Witnesses is important because you wan't this place governed properly when you are not around. Witnesses are the safe keepers of the blockchain.
When it comes to inflation distribution: this only counts over the STEEMPOWER you haven't delegated.
Example:
The 1000 SP I have delegated to @Steemhunt gives them the right to dictate inflation with that 1000 SP but I get 400-500 HUNT tokens back in return.
Investing in STEEM
There are many opportunities on Steem still to be discovered by investors.
It's not easy understanding Steem, it takes a couple of hours of research, but it's a sleeping Giant.
Steem is now 3 years old and it's bursting with development by the people that get it.
Just look how well Steem is represented in the top 10 of State of the Dapps for instance:
https://www.stateofthedapps.com/rankings
Those are dapps with real use cases!
And once you dive deeper into the those Dapps you will see some of them have FIAT entry points and real revenue streams outside the crypto space (check out @steemmonsters for instance).
That's the start of real world adaptation.
Exciting times on Steem. Keep on eye on it!
I am part of witness @blockbrothers.
Please consider us for your witness vote if you think we deserve it here:
Vote for @blockbrothers via SteemConnect
Set blockbrothers as your proxy via SteemConnect
We are the creators of Steemify a notification app for your Steemit account for iOS.
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Thanks @eyxle good laymen explanation. But still difficult to grasp even for old timers here. But it's NOT you ....it's just the nature of the Blockchain and the complexities involved
Still trying to fine tune it. Thinking about it a lot.
OK, just added 1000SP delegation to SteemHunt... Why not?!
Agree! This project has huge potential and they are working very hard. And delegating is a pretty safe way of investing :)
Great write up focusing on investing in Steem! Although itbis not the focus, earning Steem by having Steem Power is just as powerful that it probably should be added in some form.
Posted using Partiko iOS
I'm all for Steem. My concern is that there isn't enough dapps being created on the platform, granting the $120m market cap. Other blockchains there's 3 Dapps a day, steem 3 a week. What are your thoughts?
P.s. I do really like the way that we can invest through delegation as oposed to giving our crypto away. That's really powerful for me.
When it comes to Dapps I guess it comes down to quantity vs quality. Making a Dapp is not hard, making a good one is. Steem is doing pretty decent in that regard I feel.
I agree.
This was a very useful and well written summary of the utility and power of Steem as an investment!
Thanks, man!
Investment without any risk that's the most amazing thing about this blockchain where one can delegate with peace of mind without worrying
And it's thinking like this that causes trouble.... There is ALWAYS risk on investing.. if steem drops to a penny? It's nice to be optimistic, but don't be blind and deaf for the sake of.
Posted using Partiko Android
Of course STEEM can lose value. But this post is not about that. Is about using delegated STEEM to invest in projects without handing it over like ETH.
Well said brother!
Great article my friend, this should be printed and sed to some high schools and education center to teach the young people about this new tech. And besides money and thinking about profits, Steemit has something amazing to offer that I always remark. It makes you wanna do things, for example, since I'm on Steemit I started to write a lot, I started filming and learn about editing, it makes you wanna create more quality content, it wakes up your brain and put it into creation mode, you start to think everything as a post, or a story or anything you could share with the community. Sharing is caring, lets take steem to the moon.
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The point 2 is a concept that in my opinion makes all the difference, I have never seen something like that, and I truly think that will have an important role in the future.
Short but very to the point. I am loving it !
PS: Are you still using APPICS?
It does not work for me anymore.
Take care and Steem on 😉
Posted using Partiko iOS
I do, it works fine for me , Did you get the latest version?