Why holding Steem Power might be the best long term investment of your lifetime.

Steem Power might very well end up being the 8th wonder of the world. Not sure what I’m talking about? Then let’s delve a little deeper into just how powerful it is and how it can help change many people’s lives and change the social media landscape forever.

Since the introduction of HF 19 on Tuesday, we’ve all seen our influence go up dramatically. It’s been a very exciting week and I think we’ve all loved the fact that that with one click, we can now very quickly and efficiently monetize our influence through our upvotes. But one question has really bothered me all week, and frankly just makes no sense whatsoever.

Why is the Steem price not rising? It really boggles the mind. We all know Steemit is incredible with what it provides and the problems it can solve across so many platforms are truly astounding. I have some ideas where Steemit will go, but I know what it will evolve into will undoubtly exceed even my wildest expectations. Steemit is setting records for the amount of interactions on a block chain. That to me signifies people find it useful, it solves a specific problem for them and they trust it. Those three criteria are key for anything to become a household name and promote long term growth.
So again, why is the value of Steem not rising after HF 19?

The answer is quite simple, Power Downs.

The current amount of power downs in Steem are greater than the amount of new and current users purchasing Steem.

This chart from steemwhales.com shows that roughly 95.71% of all available Steem is owned by 1%, The Whales.

Due to their massive holdings, a 1/13 power down is quite a substantial sum. It would take millions of new users “powering up” to buy all the liquid Steem that’s hitting the market. But I believe this time is coming, and coming fast due in large part to HF 19.

This next chart, also from steemwhales.com shows the amount of Steem currently being held in SteemPower.

You’ll notice quite a difference here. The amount of Steem being held in Steem Power by the whales is substantially less, only 70.82% vs the 95.71% of Steem, while the Dolphins now have a significant portion of the pie holding 6.76% Steem in Steem Power, with Minnows holding 1.17%.

The Dolphins and Minnows are holding for the long term and the more of them that flood in, the greater these percentages will sway.

Don’t get me wrong, there’s nothing wrong with taking profits or paying off debt, you can do what you want, it’s your money, but from an analytical perspective, Powering Down looks like a very costly play. There is no guarantee that you’ll be able to recoup those precious Steem Tokens at the price you’re selling them for in the future, but the influence you give up since HF 19 is catastrophic.

Here’s a brief example to show the power of holding Steem Power since HF 19.

You have an account of 1500 Steem per se and hold it all in Steem Power. With the current Steem price being $2.20, that makes your account value in USD $3300. That should roughly give you an upvote of around $1.50. So for examples sake, let’s say you upvote every day until your voting power gets down to 80% and then call it a day, let your voting power regenerate and start up again tomorrow.

Using these numbers you’d be able to give out $15.00 per day.

15 --100% upvotes (costing 2% per vote) = $15.00

Let’s say you split your upvotes at 50% for upvoting others and 50% for upvoting yourself.

$15.00 per day
$7.50 per day you’re upvoting your self and $7.50 per day for others
$7.50 per day times 7 days = $52.50 per week for yourself & for others
$52.50 times 52 weeks = $2,730 per year for yourself & for others

You started with 1500 Steem worth $3,300
After one year your account is worth$6,030
That is 83% ROI and I haven’t even figured in 1 penny of author or curation rewards nor the price of Steem increasing.

Just let that sink in for a minute.

This is why I refer to Steem Power after HF 19 being the 8th Wonder of the world. This could quite possibly be the greatest opportunity of our lifetimes. My grandfather always would tell me opportunity never knocks, it tiptoes down the street and tries to sneak by while you’re sleeping. If you want to catch opportunity, you simply have to be alert and ready, and when he comes tiptoeing by, grab him and don’t let him get away.

Hope you enjoyed the post and took something positive away from it. Have a great weekend and make today a great day!

I do want to add this. The split is a personal decision and something you have to decide for yourself on what best serves the community and long term growth of Steemit. HF 19 has given us all greater influence, so we all have greater opportunity and greater responsibility to do what’s best for the community.

imagesource
charts supplied from www.steemwhales.com

Useful Websites for Steemit Newcomers
www.steemd.com
www.Steemnow.com
www.steemdollar.com
www.steemwhales.com