Benefits of frozen STEEM
As you already know, STEEM power is kept frozen on Steemit, as you can't cash it out immediately. According to my knowledge, it takes 13 weeks to fully cash it out, with the payments done on weekly basis.
I can think of some good benefits of frozen STEEM, which I am listing below.
1. It is hack proof
Imagine someone hacks your account. Now the hacker would require 13 weeks to fully cash out your STEEM power. In this way, the earlier you recover your account, the better. If you are vigilant and notice the hack within the first week of the hacker powering your STEEM down, you won't lose any STEEM power if you immediately apply for recovery.
2. Prevents panic selling
Last week you saw how the prices of crytpocurrencies went down. Even the price of STEEM declined massively. This is because many crypto noobs easily get afraid of FUDs, and start panic selling. Now imagine, if STEEM power wasn't frozen. I bet, many people would even be selling out their STEEM power in such scenarios.
3. Prevents the price of STEEM going down too fast
When panic selling happens, price of a coin goes down fast. Since, STEEM power is frozen, and therefore can't be sold immediately, it preserves the price of STEEM to some extent. In other words, in the case of FUDs, the price of STEEM would fall even more if STEEM power was not frozen.
If you think there are even more benefits of frozen STEEM power, I would like to know.
Sure great benefits as I have also some steems and would suggest all to keep them save so that market value would be raised soon
True. The value of STEEM has been going up well since the FUD last week. Hopefully, it would reach $5 again, soon.
Excellent piece of useful and concerted information about benefits of Steem Power. I covered it in detail while analyzing Steem as an invesment last week.
13 equal installments in 13 weeks it is. If you have 1300 SP, powering down will mean 100 Steem per week, the first installment after one week of starting power down.
Account is frozen immediately by the support team (if reported immediately for recovery) and the keys are reset within a day or so. Except liquid Steem or SBD and pending rewards, nothing can be stolen.
Staking a noticeable portion of your STEEM as SP is a well-respected step on the Steemit platform🙂
I loved the title of your post!!!Frozen Steem....
Yeah it definitely has its benefits as you described...
Its also a good indicator about how much a user is committed to this platform for long term...
#hodl
Yup, hodl is the name of the game :)
yeah so true . it stops panic selling a lot and which helps steem from going down fast. you have noted all the three valuable points .