Invest without contributing, you're gonna to have a bad time
I'm going to look at three cases
Case 1: Investment in Steem more than doubling every year(Optimistic)
In this case, you can't really go wrong, invest to make money, invest and contribute to make more. We need it to double due to Steem's inflation rate been 100% a year.
Now a lot of people think this is a given, as we all know so many people interested in steemit and, barring some disaster of course, steemit users will double each year. But new users on Steemit doesn't mean new investors in Steem. A lot of us early users are from the crypto world, and I reckon the 'investment to new user rate' is much higher now than it will be when steemit goes mainstream.
Case 2: Steem Investment about doubles each year (Achievable)
OK so now investing and only investing is a wash so we can talk about contributing. Now everything I say about contributing applies to the other cases as well.
That 100% inflation I mentioned, well 90% of that new Steem is earmarked for rewards. I've heard some people say 'turn your Steem into Steem Power and you don't need to worry about the inflation', it helps but it is not fully true. Here are the rewards you can get
- Interest
Check out this cool site by @jesta, here's his [post(https://steemit.com/steemstats/@jesta/steemstats-com-steem-account-monitoring-and-statistics) about it
You can see how much interest your SP is making just sitting there, mine is about 5% APR, so not enough to combat the 100% inflation. This is my main point of this post Static investment will struggle to see a profit
- Posting/commenting
Something on your mind? Got an idea? Post it, if you pick the right community someone will be interested. The lion share of that 100% inflation is given to these posters and commenters.
- Voting
That dollar amount you see below a trending post doesn't all go to the author. 25% goes to the curators (the voters). And this distribution is weighted so that, if you vote early on a post, your reward will be bigger.
- Mining
I believe 10% of the newly minted Steem goes to these engines that keep it all running, but am no expert on this aspect so......
Case 3: Steemit fails
Bah no chance, this site is great. But if it does? Well it is a startup so of course you need to consider steemit failing as possible or maybe even likely, Only invest what you can afford to lose
For more info check out the Steem white paper
TLDR
Contribute to increase profit whether you invest or not.
Do you suggest to buy more Steem Power? What's the best plan to profit from this amazing community?
If you buy Steem, unless you are buying it for a very short term investment, you should turn it into SP.
In saying that whether you buy steem or not is up to you. I see big rewards to it and big risks. Exciting isn't it.
Okay, thank you for your opinion. I think ill just keep creating value to the community and earn steem power.
Good content encouraging more good content. I like that!
I did not consider the fact that the upcoming new user buying Steem/SBD/steempower is not at all guaranteed and will probably take some time to be realized fully.
I'm hanging onto to the mane of this tiger until it dies or becomes the fb King killer, so hopefully my investment isn't lost. But in the extremely unlikely event that this platform doesn't rocket to Andromeda, I will walk away happy that it existed at all, and certain that something like this is inevitable.
That being said, my head and heart says this is the big one, so full Steem ahead!
Let's hope, and I think you're right if not steem something like this will take off.
the difference between steem and other crypto is that steem is more dependent on actual situation, hackers, and that can create instability, volatility.
so investment should be moderate.
other big crypto in my opinion must be more stable, their risks is not so big
Agreed
So True
Yes, I understand that besides investing in the SPA have to contribute publishing the post and voting and commenting on other post!