I wrote a post a while ago that explained the difference between STEEM, STEEM Power, STEEM Backed Dollars, and Vests. It was a response to the following comment I noticed on a post:
The comment assumed STEEM, STEEM Power, and STEEM Backed Dollars were the three currencies, but there is no such thing as STEEM Power. If you want to understand why read my post.
This leads me to this post, I am surprised a lot of people do not understand that just holding STEEM as STEEM Power will give them more STEEM in the long run. Before I get into that, I want to quote the important part of the article above as it will help this make sense.
Vests
Now here is where people get lost. Vests are stupidly confusing and not very well understood. When you power up and buy "STEEM power" you are buying vests. Vests represent how much ownership you have on the platform. It is like buying stock, you claim a small piece of ownership. If you have enough ownership you gain influence. In the stock world, this influence is shareholder meetings and even the ability to influence the direction of a company if your stake is large enough. On STEEM this influence is voting power. The more ownership (Vests) you own, the larger you can influence (Vote) on the platform.
Once you understand you are buying "Vests" and not STEEM Power, things make a little more sense. Buying Vests (aka STEEM Power) is like buying stock in a company. You are acquiring ownership on the STEEM platform. The ownership (or Vests) are worth more as time passes, and are more expensive to buy with STEEM. If you look at how much 1 MVest (1 Million Vests) is worth today compared to 2 years ago, you can see how much STEEM you would have gained by hodling STEEM.
STEEM per 1 Million vests
Today - 491.663
2 Years ago - 197.416
If you had powered up and bought 1 Million Vests two years ago, it would have said you powered up 197.416 STEEM Power. If you have powered down today, it would power down as 491.663 STEEM Power over 13 weeks. A net gain of 149% of your initial investment, without placing a single vote.
Those gains are so big, even Arnold Schwarzenegger would be proud.
The current rate is far slower than the initial two years and will only be a couple percent a year, but still more than institutional rates.
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Using up-voting bots makes STEEM stay $3 @ forever my friend.
No newbies want to buy even a small amount of STEEM
If you want $100 STEEM then, you must give some rewards for new steemians. If not STEEM will go to $0
If you want to win, we win together or newbies will go where they get reasonable reward for their contribution.
Time to decide my friend
I would be happy to know where will be people going to get reasonable reward for their contribution?... LOL... Facebook?, Reddit?, Twitter?, Youtube?...
There is no competition to steemit right know, this is the only platform that will give you some reward for posting, even if you are a newbie... Other business models requires a lot more of work and investment to get some little reward...
Yes, self voting is ugly, but sometimes i think we should stop wining about it... In real life, people who have a lot of money will use that money to get self benefit, this is not different here...
Yes I 100% agree.
Humans are just too greedy wherever they go.
There are competitors.. Check out Primas, moving out of open beta and coming online this week. It's like Medium quality content with a community incentive system like steemit but more fair and without the centralisation.
built on ethereum...it is junk already
LOL I like your comment. You should self upvote that one! My votes are below the payout threshold.
Maybe a competitor will launch on EOS but I've heard of no real competitors now. I think minds or something has a token but you can't trade it so what good is that.
Can move between public chains
100% capacity and backed up 43k transaction... you can take a nice nap while it "moves between chains". And this is supposed to be a competitor? come on. golos runs circles around that project...lol
http://blocktivity.info/
I guess i messed up when i sought for an upvote on steemchat.
Well don't blame me, i was desperate for upvotes and didn't think much about building friendship and forming alliances.
Can you perhaps give me a second chance by unblocking the chat section you closed between you and I? Sorry.
hey @nathanmars, this is exactly what we are doing with #comedyopenmic / @comedyopenmic we have given out ~1000 SBD and ~270 Steem and attracted total paid-out of >$15,000 worth in upvotes and prizes since we started (data from SteemSQL) all without bot votes, so 100% profits for original comedy content producer.... come checkout what we're doing and see if we can help bring Steem to >$10.
This world has more serious problems to be solved than supporting comedy content producers.
You can do what you want with very limited time given to you.
Please don’t judge me and I won’t judge you. Let it be wonderful :)
not judging at all, in fact, I'm in agreement with you.
as for world problems, well, we're current focus on the world of Steem and obviously you are a serious Steem investor so I thought it would interest you to know that comedy has been the biggest retainer of all social sites
why do you the subreddit s/funny is the biggest sub-reddit with 50million members?
or why facebroke and dubetube consistently run funny videos and content randomly into their users stream to keep them engage and coming back?
our goal is to bring authentic comedy content creators and enthusiast into the blockchain, we're just starting with Steem first, and hopefully bring up the value of your wallet.
Here's a quick vision snapshot of the next 12months:
mid term vision 1.5-2 years.
we're a community volunteer based account growing on the graces of Steemian large and small, if what we're doing isn't part of the solution, we would not be currently trending as one of the tags with the highest average paid upvotes....no kidding, go click on the link and see for yourself.
they say laughter is the best medicine.... maybe laughter is also good financial medicine for blockchain technology, especially for the likes of social media blockchains like Steem, don't you think?
Yes I agree laughter is best medicine.
There are thousands of people are dying of unnecessary wars. So what I’m doing is kind of more meaningful to me and I come from a place where thousands of people killed by internal war. At least in my own view.
I 100% believe that you’ve your own argument for doing what you’re doing is meaningful to you.
If I meant to rethink about you then I’ll :)
Peace
we're pretty big supporters of Video Comedy too, in additional to the regular comedy competition we give out special prizes to spur higher usage of DTube, DLive, etc
Check this out:
https://steemit.com/comedyopenmic/@comedyopenmic/comedy-open-mic-comedy-contest-round-15
Round 14 Prize Winners and Also Extra Prizes for Video (Dtube/Dlive) Entries:
https://steemit.com/comedyopenmic/@comedyopenmic/comedy-open-mic-comedy-contest-round-14-winners-post
If you like what you see, please throw us a witness vote to @comedyopenmic, we want to put our best Video and Comedy talent on Trending and we can't until we can raise Jester Prizes to 300 SBD which is about a $600 to showcase our best talenst in 1st page trending and put a crack into the bid-bot cycle of domination.
Here is the witness link:
https://steemit.com/~witnesses
or with Steemconnect:
https://v2.steemconnect.com/sign/account-witness-vote?witness=comedyopenmic&approve=1
Steemit gives a lot of rewards to newcomers (unlike other social networks).
The price of STEEM will increase if Steemit develops if readers (unregistered users) and followers will find quality and original authoring content they will not find elsewhere on the Internet. If the Steemians will accumulate STEEM Power and they will take care of the growth and development of the entire community and platform.
Steem On!
Yes I agree with some of your points.
However you can't deny how many self serving steemians are here.
"Some Steemians are not taking a day off from getting their rewards unfairly. Why should I take a day off from making it better for most people including new ones"
I understand.
However, I myself will rather not publish anything if it should only be for reward. I prefer to publish only what I enjoy myself and in what I can see at least of some value.
Thanks for understanding my friend.
You seems like good steem citizen like many others.
There’re few bad Steem citizens and we’re many good steem citizens and first they ignore us, then they laugh at us, then they fight us , then we will win.
Let’s keep up fighting:)
I believe that those who are here for easy earnings at any cost will quickly drop off. Only those who care about the community and the platform will remain here.
100% agree!
Yes sir
Lets keep fighting until we win
Yes this fight is worth it!
When steem price reach higher price ($100), there will be so many people will have financial freedom around the world.
Right, look at the last six months or so and not two years. The picture isn't as pretty. The cheer squad is standing on a pile of dead plankton. These sorts of posts start to smell when they're not backed up by an improvements in the platform and awful content quality.
As we speak, there are Blockchain developers are working hard to make Steemit a better platform and as a user we also should do something for the community to remove or notify people who are creating awful content.
Also Steemit is a like an ocean and there room for everyone to swim
We'll just have to agree to disagree. I spent quite a bit of time here, but I've pretty much given up except for a few things here and there. I find it much more fruitful to spend time developing my following on Reddit or Quora, which are also a lot more fun for me. No, you don't get paid to post on those sites, but you can organically gain a following that will gain you eyeballs for projects you do monetize. Certainly, a few people find a way to do that here. A bunch of people I followed because I liked their content six months ago have thrown up their virtual hands and vanished.
Do the work you enjoy and do it where it like the most.
May be Steemit not for you.
Most important thing is that you’ve tried and failed. Life is an experiment too.
I think this guy should post photos of girls with big boobs instead of muscled men
At least you know what you want for yourself. Good luck with you and your dream big boob girls. lol
That social media network would be Sola.ai , if you not there already. Cats, boobs and butts are pretty much it over there.
Blasphemy you don't like the Arnold!!
hey it's me, the new steemian.
Welcome to the Steem world:)))
As a newbie I haven't purchased steem. I want to but it is very expensive and won't change my influance. I'd need to spend $US5000 to increase to a good upvote amount and I don't have that amount of cash.
There needs to be a better way as currently all the Steem bots are milking the system and not helping build new members accounts.
There are a lot of people leaving Steemit due to this. There needs to be a better way.
Maybe rewards for steem purchases i.e. 10% bonus on purchases.
The reason the gains were so high the first 2 years is because steem started out at 100% inflation. Today if you wait 2 years you will get around 17%, basically the sum of each years inflation. So by powering up you just are immune to the effect of dillution by newly created steem (inflation). Self upvoting for visibility.
even less, you'll get will get just more than 10% of that 17% (it's more like 18.5%) .....go see my comment to markymark below.
Never understood people that self upvote their own comments
SBD should be consider as Steemit's currency. Which means people need to buy SBD and convert it into Steem. If people can buy Steem directly, then SBD will be useless. Steemit board needs to consider, whether to keep SBD by stop Steem trading or get rid of SBD.
If SBD is effectively pegged to $1 it becomes very valuable for commerce. Unpegged it is just as useless as a second big toe.
The only way to make SBD valuable is get rid of Steem trading. Ironically in Australia, you can trade Steem but not SBD.
Why is it useless? This makes no sense. Especially when it has high value.
It offers nothing that STEEM doesn't when it isn't pegged to $1.
Nothing? That's logically incorrect. The payouts come in Steem Dollars. The higher they are the more value people get in return.
The payouts come out in STEEM Dollars "now", but if we decide the peg no longer exists and will not be enforced it can easily be switched to STEEM and SBD can be removed without any impact on the system.
Right now, of course, SBD has some use because it is being used by Post Rewards, bots, and it has a value, but it can be removed and all that can be handled by STEEM.
Perhaps. But Steem Dollars sounds cool. We should keep it.
Why do you want to get rid of SBD?
I don't, I just want SBD to be more useful.
You think it's not useful right now?
It's heading to that path
No
This is properly explained and it is easy to understand. Thanks for this post.
Hey Mark. I see your point. For the same SP, the mVests increases as time goes, which is great! But one thing I don’t understand is that if I don’t perform any action the past two years, the SP amount won’t change, only the vests right? But others vests also increases right? So my propotion of the vest still stay the same, except for Steem price went much higher in the past two years, I don’t see why it is profitable.
I didn't know that. I have taught that if you power up 1000 STEEM you get same amount when you power down. Thanks :-)
The same here, I didn't know about that part. The concept of Steem is so huge that if one spends a year here, he will keep learning new thing everyday.
Look, your SP doesn't magically go up. He's saying that the value did increase in the last two years, so people who bought in then did make a nice profit. It's a different story if you take a look at the last six months. There is no guaranteed that you will make money. Past performance is no guarantee of future performance. He's a salesman.
Look, your SP doesn't magically go up. He's saying that the value did increase in the last two years, so people who bought in then did make a nice profit. It's a different story if you take a look at the last six months. There is no guaranteed that you will make money. Past performance is no guarantee of future performance. He's a salesman.
STEEM per mvests goes up only about 2% per year now. In the beginning of STEEM it went up a lot faster.
https://steemit.com/steemdev/@jesta/historical-rates-for-vests-and-steem#@hpauric/re-jesta-historical-rates-for-vests-and-steem-20180104t103529498z
It's definitely not as much now but it does go up a bit and far more than institutional interest rates.
is it valuable to a user to power down and rebuy steem vs leaving it in the account>
Powering down then powering up again will result in less Steem Power depending on how long you hold it before powering up again. The amount is tiny when you talking short term it is almost insignificant.
In the early days there was 100% inflation, that's why he got the numbers he did.
Now, if you power up you get 7% inflation. So if you power up 1000 steem, and then power down a year later, you get 1070 steem.
Hi sr i would like to ask u when what is more cost effective.. buying steem power or buying upvotes to get the steempower... and the nathanmars comment its very reasonable.
thank you for that info
i don`t plan to switch rom steem power to steem any time soon
Hi Mark,
Firstly, let me just say i witness voted for you. Second, forgot to mentioned to the noobs and those who came after hf16/17/18 or something when the inflation was much-much more than 9.5% a year (think the 50-100% inflation during the mining days and the )
In the next 2 years, new Steemian powering today won't even see 14.9% increase in vest in their Steem, much less 149%.
Note, in the last 4-5 months. i saw vest go from 480 to 490, that's only 2+%
I suppose please share some reasonable FOMO.... like SMT drawing in maybe 2-3 solid ICO out of 20-30 new token in Dec 2018 (who know's it's possible). I'm just saying....please give realistic info.
ok? as you were, thanks for keep our enthusiasm up.
Hi Mark,
Firstly, let me just say i witness voted for you. Second, I think you forgot to mentioned to the noobs and those who came after hf16/17/18 or something when the inflation was much-much more than 9.5% a year (think the 100% inflation during the 1st year, and especially during the high Steem payout during the early mining and early witness days)
In the next 2 years, new Steemian powering up today won't even see 14.9% increase in vest in their Steem, much less 149%.
Note, since last end of Oct, when I finally got my account approved. i saw vest go from 480 to 490, that's only 2+%
Please share some reasonable FOMO/expectation.... like SMT drawing in maybe 2-3 hot ICO out of 20-30 new token by Dec 2019 (who know's anything is possible). I'm just saying....please give realistic info, not skewed data.
I hope this did not offend, but I think it's important to clarify.
On the whole, I think this is a good post, it brings awareness to Vest, and to gaining Steem via Vesting no matter the modest amount it earns.
ok, thanks for keep our enthusiasm up during probably the worst Steem user attrition and slump of new comers.
We're trying to grow serious comedy here on Steemit, we believe it will bring in real talent, and increase retention for the next half a million users coming on to the blockchain.
please drop by and judge for yourself if this is worth supporting #comedyopenmic and our community account and newly launch witness server @comedyopenmic.
I think you meant
STEEM per 1 Million Vests
(Upvoted for visibility)
Thanks reversed it so it makes more sense.
Well if my buying steem And powering up means I purchased influence and part of s company. Why on earth are the 100s of people crying about what I do with my vest 🤔?
Every action will piss off a certain part of the community, it is unavoidable. For example, this post got hate because of how I worded it.
It isn't the same as buying part of a company but it was the best way I could find to make it understandable. There are many that believe it is your stake to use as you please, there are many that believe you should give away everything away.
For the most part, everything is fine unless it is someone else doing it.
It seems like we have entered a never ending discussion. Even with the changes that are made, if you don’t invest you will still be lagging behind.
I don’t understand how your post could receive hate, it made sense.
I am a firm believer that users can wield their stake however they see fit. However most people who use this justification for excessive self voting, vote selling, etc. only believe in “the code is law” when it comes to upvoting. If they are downvoted into oblivion they’ll never acknowledge it as a valid use of vests. They are often the first and loudest to cry about how others have chosen to use their shares.
I’m overall happy with the mechanics of the system, I’d like to see more of a cultural shift that does free people to use their vests as desired, including a lot more flagging!
Self votes and abusive flaggging should viewed the same but no one talks about that.
I learned a lot, thank you for sharing this knowledge!
:))))
Thanks once again
Wow! This is educating and very well explained without need for big grammar.
I know better know. Thanks...the.more reason am holding my Steem Power.
You are already my witness and i am proud of it, thank you for your help in developing Steemit
Sir @themarkymark,you can earn money by investing in your post with a great person but you must remember that many people here should comment on your post and vote on their behalf. In my opinion
I must get some more of these vests you speak of...
VERY GOOD INFORMATIVE POST ON STEEM RELATED THAT WILL HELP STEEM LOVERS EVENTUALL Y
THANKS, IT IS VERY GOOD OF YOU TO SAY THAT.
WHY ARE WE YELLING?
I totally agree with you, its definitely all about the long run, cheers, s. error
Great post. The definitions and explanations are simplified for a complex system especially for a newbie like me. I have upvoted your post, followed you and am going to read the previous post linked in this article. Thank you!
I feel like a mad scientist any time I try to explain to people the differences between STEEM, SBD and Steem Power. However, you did a concise job at it. I'll just tell people in the future to go read this post haha.
same here...i might as well re-steem.
Thanks, check out the post I linked at the beginning of the post that explains them all.
Fhjjjj
I don't thing people are buying million steem powers. Explain in thousand or hundreds...
I never understood what Vests were until now thanks @themarkymark. Upvoted, followed and resteemed...
I can understand the need for STEEM and STEEM Power. I don't understand the need for SBD. I always convert SBD to STEEM.
SBD was designed for enabling commerce. The ability to sell a product or service for $10 and know 10 SBD will be roughly the same value. With the broken peg, this no longer applies and SBD has no point while the peg is broken.
The rate of return for holding STEEM in SP is not as high as it used to be. From December 2016 to January 2018, it only increased by 10 million STEEM per mvests from 475 to 485. This is a gain of 2% for that approximately one year period. STEEM per mvests went up a lot faster in the early days of STEEM.
https://steemit.com/steemdev/@jesta/historical-rates-for-vests-and-steem#@hpauric/re-jesta-historical-rates-for-vests-and-steem-20180104t103529498z
That sounds about right like I said above it isn't nearly as much but it is still a lot higher than institutional interest rates. Add in the fact you can vote and curate with it, it's like printing money.
Very well put, thank you for the knowledge. Great post and very useful to all. Definitely a post that needs to resteemed.....
Short.
Simple.
Easy to understand.
Direct to the point.
No yada yada.
Tonight I just found out what is Vests.
Previously I was very curious when opening steemd.com Vests there writing there. Apparently Vests are Steem Power.
Vests are not STEEM Power, vests are how many shares in the STEEM platform you own. STEEM Power is just a human-friendly number to show you how much STEEM your vests are worth. It's not a currency, it isn't anything but a nice way of displaying how much vests you own.
Oh, my God
means I misunderstood
And you are saying that number of steem in your wallet will increase over time if you do nothing but let it sit in "vest"?
Would not that also require the price of steem to rise just like it did before? Will the amount of vest you own only increase if you earn or buy more?
Honestly if you just held just steem without powering up its the same thing isn't it? Then you do not have to wait 14 weeks to cash out while it is going up and down. As well the 14 weeks "power down" has changed before so it could change again?
Holding liquid STEEM and powering up would not be the same thing. Buying VESTS (aka powering up) will yield more STEEM when you start to power down at a future date. Holding liquid STEEM will always remain the same amount they just may be worth more or less on the market.
I doubt the powering down duration will change again.
Finally. I've been wondering what vests are. Tried searching online but nothing as comprehensive as this.
I like this post I am going to resteem it!
you said it rite but this very same thing helped me alot. The difference between steem and steem dollar is hard but this becomes profit if you fully know it :)
I also hope you can pay attention to me. Here I will write my life experience. Thank you!
Arnold will be prouder if he has bought some Steem 2 years ago.
One thing I understand about crypto-trading is that you power down when it is high them buy more when it is high.
Good Explanation, shall help newbies to understand steemit economy!
Well explained. I got the point. Thanks for the post. @themarkymark
I do want to get more SP (Vests) but as a content creator I feel discouraged because even though I bring shitload of ACTUAL PEOPLE to steemit/steem blockchain, I do not get any thanks form my work like an upvote from established steemit users with high VP because they are busy circle jerking or selling their vote...
And trust me I am awesome content creator.
That is the result of an elevated SBD price.
Hodling STEEM Power makes STEEM has been resteemed by @resteemmuse
well done, you helped this noob understand more about the steemit platform. thank you for a great post.
Usar bots de votación ascendente hace que STEEM se quede $ 3 @ para siempre mi amigo.
Ningún novato quiere comprar ni una pequeña cantidad de STEEM
Si quiere $ 100 STEEM entonces, debe dar algunas recompensas por nuevos Steemians. Si no, STEEM irá a $ 0
Si quieres ganar, ganamos juntos o los novatos irán a donde obtengan una recompensa razonable por su contribución, espero que mi comentario sea de su agrado SALUDOS
I'm flowing and upvote you. Please upvote my post for grow steemit..
Great post you got there about the steem power @themarkymark this means I have to work very hard to get steem power here!
Im new here in steemit i hop this type of post will help me n help the new users of steemit.I hope lot of experts who know deeply about steemit will help me please upvote me help me grow my career in steemit.
Hello Dear,
I have already upvoted You; Please back me upvote and follow for success each other's.
My New Post
Best Regards
@firozdiu
I've never seen Arnold this ripped.
Anyway, thanks for putting this out @themarkymark - about STEEM alright, not Arnold. 😂
I'm seeing this with my delegations. A customer is leasing 50K SP from me, but that has slowly crept up over the last six months.
Since he's actually leasing Mvests, he's getting almost 50,500SP worth currently.
Buying steem to power up from your anlysis is a good investment. Steemit is growing and the interest will keep increasing.