Historical MVEST to USD Price Chart - Steem Power Has Not Lost Value Over The Long Term!

in technical-analysis •  8 years ago  (edited)

With the inflationary nature of STEEM, looking at a traditional price chart for the currency is going to show a skewed perspective. The reason is because STEEM is not meant to be held as a long-term investment. The constant sell pressure from additional STEEM being created and sold on the exchanges will always put a downward pressure on the price.

Steem Power is meant to be a cushion against the inflation. The unit of a Steem Power is called a "vest". When you power up, you will get a certain number of 'vests' for the STEEM that you agree to lock up as part of the 2 year contract. As part of that contract, the blockchain will continue to add more STEEM to your vest in order to hedge against the inflation.

After powering up, the number of vests that you have will not change; but the amount of STEEM that you have powered up will. Unless of course you change the number of vests by powering down (which will decrease your vests), powering up (which will increase your vests), curating (which will increase), receiving author rewards (increase), etc. The important thing though is your vests remain yours unless you do something to change them.

When looking at historic price data for STEEM, all the exchange and price sites will show you the price of STEEM. For an investor in Steem Power, this information is useful, but it does not tell the whole story. As a holder of vests, they will be getting new STEEM added to their account at the same time that the price of STEEM is going up/down (usually down). When you have the price of STEEM going down, but the number of STEEM per vest going up - the two start to cancel each other out. The rate at which the price goes down compared to the rate at which the amount of STEEM goes up is important to determine if the overall value of your vests is going up or down.

Disclaimer:
All of the data below was collected and calculated by me by hand. I worked hard to ensure its accuracy, but I cannot guarantee the numbers are 100% correct. The numbers were taken in 7 day increments. Also, there is going to be some slight skewing of the numbers because the time-stamps of the data-points that were collected from the various sites were not at exactly the same times. (Example the price of STEEM may have been from 7:30, but the price of BTC might have been from 9:15.) Other users are encouraged to follow the steps that I did to ensure the accuracy of the data and calculations. The use of alternate data sources to cross-check the numbers is encouraged as well.

This graph shows the value of 1 MVEST of Steem Power from 6/19/2016-10/30/2016:

This is probably the most important part of what the data shows though:

1 MVEST today is still worth slightly more than it was pre-price pump! Steem Power vests have actually gone up in value if you look at the historical price data!

This is the same graph, with a historic floor drawn in based on pre-pump prices:

Data Sources:
BTC Price Data: http://www.coindesk.com/price/
STEEM Price Data: http://coinmarketcap.com
MVESTs/STEEM Data: https://steemd.com/@steemit (weekly power downs)

Raw Data:

Reminder - Please read the disclaimer above regarding the accuracy of the data.

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  ·  8 years ago (edited)

Thank you so much for these charts. I have been looking for MVests charts to see the price trends. These charts are very helpful.

This is an extremely informative post in my opinion. Thank you again!

Steem on,
Mike

I second that thank you! I've looked for these charts on numerous occasions. I'm so glad someone finally did this. These are the only charts that the average Steemer should be looking at. It's funny cause the average steemer watches the price of STEEM when they don't even own STEEM... they own mVests!!! This is the main chart steemers should be looking at!

mVest is the unit of measurement when it comes to Steem platform investment. Thanks.

Thank you! I tried searching for it and found all kinds of things: MVEST, MVest, Mvest, mVest.. It is nice to know the correct one! I will update now.

I don't know about how vest should be capitalised, but M should definitely be capital M. M = Mega = Million. m = milli = 1/1000

Thanks. I checked, and it sounds like it technically should be "MVEST". I updated it.

What I mean is just appreciate for the meaningful chart. I am also not sure what is the correct expression... Would like to learn.

Oh, lol. Well it's mVests now! (At least in my post, hehe)

Sounds like "MVEST" is correct.

great perspective!

@timcliff I have a question. So a while back I read something about powering down and then every 7 days restart the power down to "give yourself a raise". Now that I've read this, I'm a little confused. When you power up you get X amount of vests. When you power down you lose some of them. Your steem power is constantly increasing. So is it beneficial to power down and then power it back up after 7 days and keep resetting it? I'm assuming if you do this repeatedly you will just have a bigger payout in steem every week, but if the plan was to cash it out I'm not sure it makes sense because as time goes on the price per steem has been going down.

I haven't looked into the power down math much (I haven't powered down yet myself), so I am not really that familiar with the details. If you powered down 100% of your vests and did nothing else for 2 years, I think you would get equal payments as far as vests, but each week the amount of STEEM that would get paid out would increase. The giving yourself a raise part is more for if you earn extra vests (from curation, content rewards, etc) and you want to include those in your power down as well. Don't quote me on this though :) I'm only about 85% sure this is right.

I like to keep track of the market cap on coinmarketcap.com, which shows a similar picture. It also overlays the bitcoin price over time.

Yes, indeed. The market-cap is another really important number for investors to be watching. Thanks for sharing :)

so your saying the price of steem is not dramatically changed? Not its value on the stock graph but in reality to its sales on the platform called steemit ?

For the users who have powered up and holding Steem Power, the value of their Steem Power shares (called 'vests') has not dramatically changed from a long-term perspective. It did go way up during the July spike, but then it came back down. We are pretty much back to where we started as far as the value of a vest.

might I ask? I have 500 SP my lady friend has 100 SP in her acct, does this affect anything like payment rewards or internet payments? Is it better to combine our SP into one super powerful minnow acct or keep it separated as an uneven split of 500 to 100 uneven distribution ?

So your saying you only lose out of steem power when you physically SELL steem, you keep steem active it stays well protected financially ?

Sorry if this is not clear , i am just on my first coffee; need more drugs . . .

Drugs are good ! ! !

I have done some research, and based on what I have heard from the "experts" who understand how the code works, there should be no difference as far as curation rewards, voting strength, or interest payments between having two separate accounts or one combined one. Therefore I would recommend you and your lady friend each having your own accounts. It is what my spouse and I do :)

When you have STEEM powered up as Steem Power, you will receive interest payments of additional STEEM to help protect against inflation. If you do not have it powered up, then you do not get any additional STEEM for holding on to it.

Whether it is "well protected" is speculative. I can't answer that because I don't know the future :)

I stopped drinking caffeinated coffee a while back and switched to decaf. I didn't like how I would get a headache anytime I skipped my morning coffee for the day. Now I just drink it because I like the taste :)

The nearest natural thing to coffee (which is natural anyways) is an Apple. The old saying an apple a day keeps the doctor away . . . Maybe some research not that anything being published today is real or scientific or reliable but try and find out the hugely long lists of apples, plus it might give you the chemical start to your day without the morning withdrawal symptoms of headaches : )

Thank you for the advice , more SP 4 u . . .

I think it has been a little mistake to show Steem Power as steems and not as vests. I guess the purpose has been to make the wallet simpler, but it's probably too simple since most users don't really understand the underlaying mechanism.

True. It would probably be good to show both. One thing that is fun to do is click the refresh button in your wallet, and watch the amount of STEEM in your SP balance go up :)

Thanks for this. I was waiting for someone with energy, and extra time, to dig into this. Actually, I feel this is the main part of the equation to understand the whole thing, and was eager to learn more!

Welcome!

Another useful post by @timcliff! Some things about this Steem system hasn't been easy to grasp. Thanks for explaining it clearly. :)

excellent post, valuable information you've shared, congratulations for what you do for the community

Thanks @jlufer :)

Very informative. Thanks for the hard work.

good disclaimer!