Investing on a blockchain and especially the STEEM blockchain requires a completely different mindset.
I was struck by this simple thought this morning.
A stockholder of a company wants the company to maximize profit.
This doesn't work on the STEEM blockchain.
Why?
Well...there is no company and therefore there is no profit to be made.
Investing on a blockchain and especially the STEEM blockchain requires a completely different mindset.
On the Steem blockchain, there are no adds and there is no data to sell. There is no revenue model. The price of STEEM wouldn't go up because of profits because there is no profit to be made anywhere.
The market decides what STEEM is worth and nothing else.
But most would not invest in a block chain that doesn't have a potential for a return on investment (ROI).
So as a Steem power holder myself, how would I make an ROI?
Well, I benefit the most by the STEEM price going up. If the Steem price goes up $1 in value that means $87000 is added to the value of my account. I can't see any other way to make a faster profit than that when it comes to the Steem blockchain.
Maximizing that goal on Steemit is something I like to do because I believe this will benefit the Steem blockchain and all STEEM holders the most in the long run.
But there are other ways to make a profit.
Another way is to blog and comment and upvote those posts. I can upvote them for $12 each. It would return me $120 a day or $42720 a year. (at current Steem price). (ps. I don't do this)
Example: my account is currently worth $130000. So that last one would be a return of 32,9% a year. Which is high, but not extremely high.
Do I think such a return is fair for Steempower holders? Yes. Steem is a high-risk investment. It can all be gone tomorrow.
Yet there seems to be hatred against those who want to see a return on their investment. I don't understand why because from an investor's standpoint it makes perfect sense. And even though I don't do this I don't think this is unfair.
The main argument is that Steempower holders looking for an ROI are making sure that new users won't use the platform or effectively killing its growth.
I think that's nonsense because I know many successful social media platforms that a lot of people use where nobody makes anything.
I have never heard a Facebook user getting angry at a Facebook stockholder for making a profit.
Investors looking for ROI is just another way new STEEM is entering the STEEM blockchain.
If the person that 'creates' it doesn't want to keep it it will eventually flow into the hand of someone that wants to keep it.
My own mom is the most recent example of this. She bought 1500 STEEM and is holding it.
Future
I see the Steem blockchain as an upcoming social economic platform now.
For me, it will transcend blogging in the years to come. There will be room for businesses and many other endeavors. There will be lots of opportunities and they are up for grasps for the people that see them.
You can see this social economic platform slowly emerging. With websites being built offering goods and services for STEEM and Steem dollars. You can see it in the development of apps and different front ends that can be monetized.
This will only grow in the future. The time to invest in STEEM is now if you believe in this growth. Because the emerging social economic platform is what will make the Steem token go up in value, not the blogging.
Steempower holders will be the ones that have the power to create new tokens. Steem and Steemdollars will be used as a medium of exchange.
It's a game of opportunities and you either take it or not. It's not that often that you get a chance to be part of something that is so new and has this much potential.
Have a great day!
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It is true that the blockchain is a completely different system compared to the current structure that we use in society. It is not as if there are some commodity's steemit can sell to profit from. Its only commodity is steem which can either go up or down dictating if you make a loss or a profit.
The main driving force pushing up the price of steem is the community. We can see that steemit works and that it isn't a dodgy platform and many of us try to accumulate as much SP as we can.
I feel bad when I constantly self-upvote myself. I think that currently there aren't enough people curating to keep up with the massive rise in the number of posts and users
However, I guess you are right that many of us have used other social media platforms and forums and we haven't earned a penny from it and none of us though a massive fit if a shareholder makes profit while you earn nothing. That is just how social media platforms have worked for years.
In the future I do see steem prevailing and doing well. We have already seen things like DTube created where the concept is 100 times better than YouTube and I'm sure with more development will lead people to migrate to dtube rather than using youtube.
All of us have an amazing opportunity now. An opportunity where people in a couple of years time wish they could have. I 100% support steem but all I'd say is that this investment is like any other investment and only put in how much that you are willing to lose.
My goal is to get to 10,000 SP before steem starts growing rapidly. I hope you have a great day too @exyle! :)
"I feel bad when I constantly self-upvote myself. I think that currently there aren't enough people curating to keep up with the massive rise in the number of posts and users"
lol yes. This should be prohibited and I was wondering in the first place, that it works.
Also strange is the nontransparent way of gaining & losing reputation, because that's the key to voting with the consequence of giving away money.
I think as soon as more users have more voting power that translates into money, the attitude to voting will change.
It seems like people are currently in this rush of making as much money as possible for themselves but I think in general there is a negative stigma around it.
Despite the fact I see people self-upvote I don't think I would want it outlawed as people should be entitled to be able to get some sort of ROI from their money and as exyle said how users don't get angry with those who make money with facebook or twitter and I think it may take away a stimulus for people to buy SP.
You do have a point. But think of that:
You upvoted me and it resulted in 0,11$, which means, you should get that as well by upvoting your own comments. According to the rules, you are allowed to make one comment every 20 seconds. Let's make that 30 including the self-upvote. That is 2 per minute or 120 per hour. In other words:
You can earn 13$ per hour by doing nothing else but creating and upvoting your own comments. Isn't that... not what is intended with this platform? I mean, it's a second digging.
Can you try that please with a couple of comments? I'd like to see if it works..
Your voting power will reduce about 1.5% with the each next voting at 100% of upvote strength. regardless is it selfupvote, or not. So it means you will have chance to upvote yourself or someone else just 10 times, and then you will have to wait about a day to recover your voting power to 100%
thx for clarification. Does the voting power vanish in a linear way or is the first vote of the day more worth than the others?
Linear. It depends on persentage of upvoting (100% by default) So the each next upvote will cost less than previous. you can visit steemnow.com it is good service to check your current voting power. There is calculator that will show cost of upvote at different conditions.
thx.. omg my upvoting power is zero. Does that get better with a higher reputation or do I need to pay in some cash first?
oh wow that site offers great stats in real time.. very nice^^
You broke down and explained what the true nature of Steemit is in a very eloquent and easy to understand way. You have a natural gift of looking at things pragmatically and explaining the confusing and complicated in a way that even a layman can understand. Bravo brother.
I agree on all fronts, and this very topic is at the heart of quite a few conversations and squabbles presently. While I think them foolish and ideological, I know doubt some pushing this matter feel they are in the right and are doing what's best for the platform. But what you so brilliantly wrote explains what the essence of Steemit and Steem are. Together, they are social eceonomic financial instrument. One does not exist without the other. As soon as Steemit attached it's self to Steem, a currency, ideological dogma goes out the window. Great article brother! Re-Steemed.
Nice photo of you and Bianca! Steemit is a long term investment. Anyone getting in and thinking they will make a quick buck is not understanding how this works. I am a newbie here and I don't understand everything yet, but I do see the potential for growth here on Steemit. It is a good time to be here.
Agree with you. We are beginners and we don't understand everything. We are giving our best to write from the heart (and also comment something we believe in). We can only hope that people will recognize that. And you said one perfect sentence: "It is a good time to be here." Yes, it truly is.
How much steem powwr wouls i have to make 120 dollars a day thanks
85000
Thank you
Thank you
Very true, Steem has got huge potential... Don't invest in Steem blockchain with the sole purpose of ROI ... Invest here with the long term perspective of building the eco-system, which will be rewarded heavily in future... Thanks @exyle for sharing the amazing insights of investing in Steem Blockchain.
Steem was the first crypto currency I got introduced in and despite all the clever heads saying '' don't put all your eggs in one basket" I decided to do just that with steem. While i only have 2500SP i am in the near future adding at least another 2500. I am not a rich person but steem got a lot of uses for me. I like blogging about my travel, I like the thought of investing in something early before it gets big. Plus I don't see steem should ever collapse. The community seems too healthy and too caring for it to ever happen. Worst case for me is steem will never rise but I still had a place to blog about my cycling travels :)
Win/win. Thanks for your perspective @exyle and I wish you best of luck in the future for steem!
Great attitude @holm, and you've got me interested in reading about your cycling adventures. That'd be so cool, to travel free and easy, and maybe introduce a few to steem along way. Alright, I'm off to get out your blog. Have an upvote.
Nice post, you seem to have a slightly more positive viewpoint of the future here on Steem than I do. One of the biggest challenges of Steem is integrating all the languages
so people all around the world can open accounts easily.
I like your big picture attitude. Steemit's potential is limitless.
I don't have a problem with anyone up voting themselves. They have earned or payed for that SP which they may use as they please. But if you spam crappy posts to do it then you should be flagged.
This is a fun social experiment :)
Steem in a wonderful investment in general. I do believe at some point there will be advertising on this platform. There are already people advertising their own businesses already here. Also, holders of steem power also earn interest on their deposits. I don't think it's enough to keep up with Steem inflation but it does add to your existing supply of steem.
@exyle - Very well said. For a blockchain enterprise based solely on a social media platform, the value of it's tokens is what the market perceives it to be. If Steemit becomes more popular and getting to be a high reputation player on Steemit becomes a style icon, then certainly more and more people will get on Steemit and value of Steem will go up. This is the 'business promotion' activity we all need to engage in, apart from ensuring that the platform always presents good, authentic content.
Thanks for this post which explains the core of Steemit in simple language for us all to reinforce our understanding and commitment to Steemit. Upvoted
Regards,
