STEEM: HARD FORK 19 - There is now a clear incentive to “lockup” your STEEM POWER. This has the potential to drive the price of STEEM up..!!
LIQUID STEEM vs STEEM POWER
Following yesterdays successful and seamless HARD FORK 19 I thought it would be a great idea to share this slide with you and hopefully help those new to STEEMIT understand what is likely to happen with the price of STEEM.
Regular Readers of my Blog will know that I always like to break things down into an easy to understand explanation as I know how frustrating it can be at times to try and get your head around the nuts and bolts of the system.
To keep things very simple, think of two types of coins: "Liquid Coins" and "Locked In Coins".
- Liquid Coins - Spend today
- Locked In Coins - Spend in the future
STEEM and SBD are effectively "Liquid Coins" that you can draw out today and spend.
STEEM POWER is effectively the same, but you have locked it away and cannot spend it until sometime in the future.
What Hard Fork 19 has done by giving you more voting rewards on your STEEM POWER has effectively INCENTIVISED you to "Lock In" your coins..!!
This incentive to “Lock In” your coins in STEEM POWER has the potential to drive the price of STEEM up as there will now be less "Liquid Coins" available to buy..!!
This lack of availability of "Liquid Coins" will most like provide the catalyst to drive the price of STEEM higher..!!
For me the timing of Hard Fork 19 has been practically impeccable and faultless as it has tied in PERFECTLY with the uptake in New Users..!!
Think about it this way, we have just increased the number of Users at the same time as incentivising people to take their "Liquid Coins" off the market.
If this is not a stroke of genius, nothing is..!!
Thanks for reading.
Stephen
I am all about getting the liquid steem out and off the markets and in to that special long love power-time capsule know as, steem power 😝
I appreciate your post, insights!
Resteemed this one and passing the word to
💪Power up & Steem on👍
Thanks for all you do Stephen 🙏
AWESOME..!! Thank you for the Resteem and support. Stephen
Shared on twitter. Stephen
Shared on LinkedIn. Stephen
This is indeed interesting. At first I did not understand what this hard fork talk was all about but now I start to get it. I resteemed. :)
AWESOME..!! Thank you. Stephen
Thanks for the explanation. Maybe also point out that your voting power will run out now faster (4 x faster), but recovery is not faster.
Ive noticed this yes. So i have to be careful with voting :)
Can you give us more details on how to manage our votes more effectively?
Yes I would like this explained a little bit more as well. I heard 10 votes at 100% power per day. How does that work?
Well said. I'm very impressed by this HF19.
Interesting explenation :) i will stop my power down because of this. Let's all work together to push the price up :)
I completely agree.
Another compelling reason is also in the fundementals of the Steem creation mechanism and Sbd debt %
For quite a long period in the past, rewards were liquid steem and SP because of SBD debt load. This provided extra selling pressure on the price due to all the liquid steem rewards.
Now, rewards are SP and SBD. No liquid steem and reduced sell pressure. Sbd debt % is basically non-existant so steemit is sustainable.
Things are looking very good right now. Im powering up
I was thinking the same thing. I converted nearly all my Steem to Steem Power a week ago knowing that i would not be selling it and that I am using Steemit for fun, not to maximize profits for a specific post. If more people tie up their Steem in Steem Power then benefits all.
Also, in an interview with the two founders - they stated that Steem Power is less diluted than Steem as new tokens are created. So it's better for you in the long run to have more SP. I believe the more SP you have the more value your get for posts as well.
You have explained the difference between Liquid Coins &
Locked In Coins in such a beautiful and simple way , now i can very well understand how the the price of Steem is going to rise when you lock the liquid coins.