I recognize that you @isteemd and @thejohalfiles are trying to do good for this platform, however doing this will send out the wrong message to experienced investors. If I say so myself, I understand what investing is and I would be very wary first if someone promises me a 15% APR.
Steemit has proven time and again that it can consistently generate risk free returns of more than 15% APR for its investors even in such a bearish market thereby beating all the traditional investment avenues by a huge margin.
It is a true that a 15% APR is very high and very uncommon in the investing world. There is a reason for that, simply because it's mathmatically very hard to keep up a 15% growth.
So either way Steem is doing something good or your approach to voting bots profit is wrong.
Steemit has proven time and again that it can consistently generate risk free returns of more than 15% APR for its investors even in such a bearish market thereby beating all the traditional investment avenues by a huge margin.
So this bearish market doesn't effect my profits at all?? In two months the steem price has already dropped 50% to an investor this doesn't seem so profitable vs the 15% APR.
Remember I am not here to call you out, because I am also working on the good of the platform. I wanted to point this out, and I hope that you can convince me how you can assure a 15% APR to investors.
Hi @futurethinker. When we mentioned 15% APR, we meant the delegation market of steemit which is showing consistent risk-free returns for all the steemians who are already owning some amount of steem. However, the risk that you are highlighting is the steem currency risk that is definitely there since cryptocurrencies are very volatile. Thanks for pointing this out. We were just highlighting the fact that keeping the currency risk aside, if you are a long term steem investor, then the delegation market returns far beats any other market returns consistently which is a unique capability of steemit. Thanks for your inputs on this.
Thank you for responding @isteemd.
What I am trying to tell you is that this "currency risk" has to be accounted for. It is true that right now in a volatile market, it seems like it is seperate but it is not. Let's take stocks as an example. Some stocks payout dividends and some do not. Dividends can be compared to the profit you get from delegating. And the currency risk would be the stock price. Putting aside the currency risk, would be the same as saying that a stock is profitable if the dividends pay well while the stock price has declined more than you get from your dividends. I think that would not count as profit.
futurethinker is right
But even if the steem price does not drop, what about the 15% return? What's the economics behind it?
Also I have to appreciate the isteemd service as on of the best made here on steemit we have to look at the basic economics here.
So the APR should attract institutional investors. They delegate their voting power to you. You upvote whatever people are paying for.
By this there is ZERO economic value generated.
If you are successful and more and more investors target that passive income, less and less relative voting power will stay with those reading, curating and posting real content. So steemit profits only by inflow of fiat from the new passive investors into steem tokens and as soon as this ends it will all fall apart... This will just be the ultimate nail in the coffin.
If you find a way to offer differentiated pricing for your voting services in regards to the value of the content voted for this should be much better.
Hi, I Appreciate Your Work and I have just Upvoted You and I Hope return your favor https://steemit.com/blog/@steemuserfacts/google-launch-new-android-version-android-9-0-pie-must-read