Let's talk about some basic math here.
My day job is as a fifth grade teacher. So I'm not wealthy. But my family isn't destitute either.
While my daughter was at swim lessons this morning, I decided to do a little research.
I figured out that I am making 0.02 Steem Power per minute.
Which means I make 1.2 Steem per hour. As of this writing Steem is trading at $4.06.
Let's round that DOWN to $4.
Which means I am making $4.80 per hour in Steem Power.
I make more than $4.80 as a teacher. But here is the thing.
I don't work 24 hours a day. But Steem Power does.
So at $4.80 per hour multiplied by 24 gives me $115.20 per day.
$115.20 per day multiplied by 365 days gives me $42,048.
That's $42,048 next year.
$42,048 is pretty close to what I made BEFORE taxes this past year.
And he is the thing. This is without me DOING anymore posting or voting.
I do nothing, and I will make roughly the same amount as I did at my job. The job I work 50 hours a week at.
Oh, one more thing, I've been on Steemit for about three weeks. I am not a whale. I'm not even a tuna or dolphin. When I vote early on a post, you get a penny. Try not to spend it all in one place.
In less than three weeks, I have an asset that will generate as much money as I do in my day job.
That is mind boggling.
What this calculation is not taking into effect is the compounding nature of Steem Power. I should be earning more per hour six months from now than I am now. Again, even without doing anything here on Steemit.
Doing Nothing.
This changes of course if the price of Steem collapses. But if Steem just STAYS put this amazing math still works.
I am still trying to get my head wrapped around this possibility.
(If my math is wrong here. Tell me in the comments.)
Other posts of mine I think you would like:
If You need a little encouragement check out this awesome #profit #calculator For Steem Power.....
https://dragonfrugal.com/demos/steem-power-interest.php
If all goes well.. Were gonna be seeing lots of new financially independent people in the near Future.....
God Bless America!!! Live long and Prosper
Dont forget to vote if u like this..
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This is a great tool, thank you for putting it together!
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Regards to the inflation concerns this is a quote from the White Paper:
Because Steem wants to encourage long-term growth, it is hardwired to allocate 9 STEEM to
Steem Power (SP) stakeholders for every 1 STEEM it creates to fund growth through
contribution incentives. Over time this drives the ratio of the total STEEM value of Steem
Power balances to the total of STEEM balances toward 9:1 . (It seems likely that the ratio will
be somewhat greater than 9:1 due to continued net Powering Up of the newly printed
STEEM.) It also means that long-term holders are almost completely protected from the
dilution used to fund growth.
So I take it, that holding Steem should be somewhat protected from the effects of the dilution from the inflation.
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If you want your mind blown a little more, the rate you're getting STEEMPOWER for doing nothing is based on your balance. So as your balance grows, so will your earnings. It's growing exponentially not not linearly.
However, the inflation rate of STEEM is intended to be 100% per year, so the value of your STEEM (all other things being equal) one year from now will be worth half of what it is today.
Still, it should be a pretty wild & fun ride. :)
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Yeah, I know about the compounding interest. I'm to lazy though to figure out that math. :)
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So, if the value of STEEM is going to halve in a year, are you saying that someone buying STEEM on the exchanges needs to expect the value to more than double over the course of a year to make any profit?
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Someone buying 1 steem today for x BTC should expect to be able to sell it a year later for x/2 BTC, all other things being equal. The intended inflation rate is 100%. The US inflation rate us usually around 2-3%.
See the whitepaper: https://steemit.com/steem/@liondani/steem-whitepaper-download
Search for 100%. However, not all other things are equal with STEEM. The whitepaper argues that since 9 out of 10 newly minted STEEM are re-invested into STEEMPOWER, the perceived inflation rate will be much lower. This will have a large effect and it's likely that the market price will be higher than x/2 a year from now, maybe even >x. All other things are not equal with STEEM because of that, and because of the massive influx of the rest of the population expected in the upcoming years.
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It's a risk worth taking. If you put $100 in the bank and take it out in 5 years the value of this $100 has decreased your purchasing power (inflation) means you can afford less for the same amount of money. Anything that could "grow" your money is worth the risk ;)
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Exactly, and I don't see any risk expect the time of posting a comment or blog. Or in the case of the post, doing nothing.
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I love the math you did here.
Thank you for being a school teacher even though they pay you little! I admire school teachers for the work they do :)
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Just curious about how you got the 0.02 Steem Power per minute at the very beginning, all your calculation is based on that number.
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I literally timed it on my phone. I wrote down how much SP I had and then a minute later wrote down the new number.
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Good way of looking at things. I was always bad at math, but with the right formula anyone can see the solution. Great post!
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Thanks!
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I find it worrying that people are starting to think this is some sort of get rich quick scheme making bold predictions based off current prices
don't get me wrong the hope that it goes well is there :)
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Actually I agree. My post was more of an observation. I am well aware this thing could tank.
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interesting post. but doesn't that change the more user aboard to the platform. because currently you are getting Steem Power for the posts that you are writing right? So if people are excessively spamming the platform won't that make it less interesting for you or did i miss something?
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The interest should remain the same. 90% of all Steem created goes back to Steempower holders.
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But you know about the inflation concept of Steem, right?
You know, something like the Dollar does by printing money, so that the interest rates in the bank are less than the inflation rate...
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I think it is possible because we are still early adopters. Later people wont get that much income.
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beautiful.
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You never know whats going to happen with steem and price.
It may go down or up...
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I know. That's why I wrote: This changes of course if the price of Steem collapses. But if Steem just STAYS put this amazing math still works.
If it goes up. Then of course things get even better.
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I think the basic assumption that steem will continue to trade at $4 is not right moreover as more and more users will come onboard your steem power / hour rate will also decrease.
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Good luck, I hope it works out for you but how do you know that you'll continue to earn this much every day? What would happen if the amount of steemit contributors increases by 5000%? Wouldn't it mean that it would be more difficult to maintain that level of income since the pie will be split with many more people?
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There's a lot of speculation and assumptions in that right now...but for our sake I hope it's right!
I did a tutorial on the easiest way I could come up with to buy Steem Power if you'd like to check it out. https://steemit.com/steem/@imjefe/adding-steem-power-in-less-than-5-minutes
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a huge bubble! fed by "doing nothing"! you can understand where it ends ;)
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