Many steemers don't know, why it is so important to convert SteemDollars to Steem and power it up to SteemPower. Here are my five reasons.
1. Converting SteemDollar or Steem to SteemPower brings you interest
Yes, that's true. Because Steem has an Inflation of 100% per year the SteemPower brings interest to not getting inflated and to keep it's inner worth. Here you can see, how much interest for your SteemPower you get: https://steemstats.com/ (enter your steemit username and choose SteemPower in the menu)
2. More SteemPower gets you more voting power to help reward awesome content
Steemit will be growing and staying successful, when the awesomeness of content is high. With your bigger voting power thanks to your bigger SteemPower you can reward content that is awesome in your view and down vote content that is not useful in your view. This way you can help to raise the awesomeness of Steemit.com. And that helps to raise the usage of Steem.
3. With SteemPower you become a stakeholder for Steemit.com
Your SteemPower is locked for two years. With this comittment you show to yourself and to the world that you are trusting the vision of Ned and Dan, that Steemit.com and Steem as a cryptocurrency is in the long run a good investment. This can convince others to join Steemit.com and will help to make Steem a cryptocurrency that will be bigger than Bitcoin some day.
4. As holder of Steempower you are stabilizing the Steem cryptocurrency
SteemPower is the backbone of Steem. Like your backbone stabilizes yourself. Imagine there would be a sub-class of Bitcoin that is "frozen" for two years. That would definitely stabilize the currency. Bitcoin has nothing like this. But Steem has it with SteemPower. That makes Steem the smarter cryptocurrency.
5. It's fun to check yourself in the ranking list of Steemers
Check out http://steemwhales.com - enter your Steemit username and you will know your rank in the steemer community. With @capitalism my actual rank is #9292. Ok, thats not much, but I hope to climp the list soon. But caution, checking your rank and your stats can become an addiction.
If you like this post, you can vote it up and help me this way to climb the Steemit rich list. Yeah!
Please give me a hint in the commentaries, if something I wrote here is not correct.
The post was written last year but if somebody did what the author said, now he is reaping the harvest.
Great post!
Thank you! this explains it perfectly. i was looking for a guide which summarizes all the information! thanks for the great post
Me too. The Steem Whitepaper is great, but it did'nt answer all of my question. I'm looking for a simple formula to calculate the SP interest. As I understand it right, Steem has an inflation of 100 % per year (see whitepaper p. 8). And 10% of the new steem goes to the rewards for content by voting. The rest, 90% of the new Steem in a year, goes to the holders of SteemPower. Then SteemPower has an interest per year of 90%. Is this correct or do I mixing things up?
Where did you get this info from? You have Zero steem dollars and Zero steem power. this blog has only been alive for one day!
i would assume like everybody else here , he did some research?
I 'm trying to understand the concept of Steem. I read the Whitepaper and was talking to people who are really understand Bitcoin. They told me, that SteemPower is an awesome concept. Is binds the Steemers to Steem for a long time (two years is a long time in the crypto scene) - I wanna know this really before converting my hard earned fiat money to Steem in big figures.
Please see my posts as essays. Like this. Wanna know something? Read a post about it. Wanna know something reaaly? Write a post about. - In my understanding SteemPower is the backbone of Steem. Am I wrong?
I somewhat disagree, I think it's perfectly fine to cash out your Steem Dollars. I mean, the whole point of this platform is that people get paid for their content, but if you don't cash out then the value of your steem or SP is not much different than Reddit karma.
The approach I take is that whatever I earn in steem power I keep in steem power and whatever I earn in steem dollars, I cash out. This way you are still building up SP for long term but still get some short term monetary reward that you can lock in right away without the long term risk, in case this system/platform isn't sustainable.
Maybe, my point was not clear enough. Of course it's ok to cash out, if you hit the jackpot. Imagine you were lucky and received 10,000 SMD for your post. Half of it turns already automatically to SP, which is very smart. But why not put addition 2,000 SMD in SP, if you can afford that. In two years you will get it back. But in the meantime you can have more voting power to reward content that you like and comitting yourself to Steemit, which helps to make sure, that Steemit is still workin in 1, 2, 5 or 10 years and that Steem will become a respected cryptocurrecy. With my post I wanted to remind the Steemers, that they helping themself and Steemit at all, when they power up more Steem.
The problem is you are making the assumption that you'll be able to cash it out in 2 years, and while I'm hopeful for this platform, it has yet to proven itself a sustainable for long term.
It's a matter of risk. For some people, getting thousands in steem dollars is a lot of money and might not be in a financial position to lock it up for two years, it'd make more sense for them to get the guranteed payout.
I'm not convinced yet about Steem enough to buy lot of SteemPower with my fiat money. But I would convert all my Posting Rewards to it, because I hope to make more cash with content at Steemit in the future. And thats why I try to find a rational way to prove that Steem has an inner worth. What about the worth of the social news site Steemit.com? You can measure it (unique visitors, pageviews). Couldnt this backing the worth of all the Steem?
i have a question for your. you didnt mention that SMD is getting 10% interest per year.
i read about that fact today in another post. could you let me know how that works?
I am new and this might be a stupid question, but what is SMD?
SMD = Steemdollars. The confusing thing is, that they are not fix, because they are the representation of Steem in US-Dollar. In the Whitepaper p. 10 is stated: "Steem Dollars are created by a mechanism similar to convertible notes, which are often used to fund startups. In the startup world, convertible notes are short-term debt instruments that can be converted to ownership at a rate determined in the future, typically during a future funding round. A blockchain based token can be viewed as ownership in the community whereas a convertible note can be viewed as a debt denominated in any other commodity or currency. The terms of the convertible note allow the holder to convert to the backing token with a minimum notice at the fair market price of the token. Creating token-convertible-dollars enables blockchains to grow their network effect while maximizing the return for token holders." So when the Steem currency is getting weake against the US Dollar, then your SteemDollar decrease as well. Thats why your SteemDollar at a post sometime fall despite nobody has downvoted you. Its complicated, but really smart.
I tihink thats a great question!
Really? Thats the first time that I'm reading this. In page 10 of the Whitepaper there is no info about this. Where did you get this info?
hey, when you think you are getting some info, click on the name of who created the info. Click on this one, their blogs is only one day old, they have no steem dollars and no steem power. find people who have lots of power and links from people that have been around a while. find sources you can trust
Kalaylah, i don't know but how should anybody build up reputation if everybody followed your advice? that wouldn't work? i thought that everybody on steemit has the same chances ?
I dont agree with you, as i found this article to be well written!
If i follow your advice, my conclusion would be, that i should not follow your advice, because you have only 11 Steempower
Maybe we give anyone the chance to succeeded? what do you say?
Yes everyone deserves a chance. However you are also more than welcome to buy stock tips from someone whose never traded stock. Blessed Be
I would like to have a private chat with one of the founders or the whales. But there is no chat function here and no messaging service. So I try to get the info by writing something and hope, that smart people answer my questions in the commentaries. And besides that I'm trying to get Post Rewards. ;)
Except STEEM is way overpriced right now. I would suggest waiting until it falls in price to get more SP for your steem dollars. Half of you earnings from posts already goes into SP anyway so you don't have a choice with that.
Thats also something I'm trying to figure out. What would be a fair price for Steem? Are there any measures for that? Somebody must have had the same question for Bitcoin and Ethereum in the past. Please help.
Depends on your personal opinion really. Right now it is several dollars per STEEM token - so if you want to power up by 1 SP it will cost you about 3-4 Steem Dollars depending on the exchange rate at the time. As cryptocurrencies go it is way overpriced for how early it is in development. A few weeks ago it was about 30 cents even that was high compared to other crypto. One of the biggest issues is the fact that there is very little liquidity and the distribution means that about 90% of STEEM is owned by less than 20 people.
But is it really a reliable measue to say, that a price, that rises up to quick is a sign of overprising? The market wants to find the fair price of Steem. The more market participant, the quicker this gets. Unlike Bitcoin or Ethereum, Steem has a build in social news plattform that permanently build content which is in part promoting Steem. Compare the beginning of Boitcoin and Steem. Steem rises faster, because cryptocurrencies are not so crazy anymore in the thinking of the public. We need a better measure for the fairness of the price of a new cryptocurrency. Any other suggestion?
You come to the deli ma of all projects that involve crypto. How do value them? They are so different from what will have using.