STEEM vs STEEM POWER: Which is Better as a Store of Value?
Credit: Background Image by @pictlover
The recent price increase of STEEM and SBD has had me thinking, is it better to store the value of Steem as Steem Power or Liquid Steem?
From a pure investment perspective, holding Steem Power gives you the potential to earn in two ways:-
- It gives you voting power and that in turn gives you the ability to reward yourself through Author Rewards and also increases your Curation Rewards as well.
- You can earn from the price increase of Steem which also helps increase your voting power too.
While these sound like great advantages one of the biggest disadvantages would be failing to capitalize on a sudden increase in the value of Steem because it takes an incredibly long time to power down [approx: 14 weeks].
By then the market would probably have stabilized or gone into a massive dip.
How about holding Steem...
Holding Steem sounds like a much better idea. But is it?
I can only think of one good reason to hold Steem in its liquid state. That is, liquid Steem offers you the ability to easily trade and take advantage of any price changes. It is very easy to quickly cash out when there is a sudden price increase and you really, really need the money.
But what are the disadvantages of holding Steem?
- Earn fewer rewards on your posts. By failing to power up you can not reward yourself with a strong vote.
- Your curation rewards suffer massively because of low voting power.
- You earn less and less Steem. Since you have low Steem Power you have to rely on others for upvotes. Therefore, the little SBD you earn will not give back much on the market once you convert it into Steem.
Why Steem Power is Better as a Store of Value.
Think about it. Steem Power is an investment and declaration of belief and trust in the Steemit Community.
By holding Steem Power, by powering up some if not most of your Steem, that is you grabbing a share of the Steemit cake with both hands.
In 2009-2010 when the Bitcoin Blockchain was born, almost nobody in my country had any idea about it. It was only about late last year, almost 6 years later, that it started making its way into mainstream media over here.
There had been a few whispers here and there like people using it for illegal activities in the deep web but all along it was met with apprehension and suspicion. Nobody really understood what it was all about.
I suspect, even though most people did not know what it was all about, they only got into it because the price was going up.
Steem is approximately only one and half years old at the moment and it represents a first-mover in the world of monetized social media.
The Smart Media Tokens are an equally incredible innovation that will revolutionize how we monetize our content online and also how we transact money worldwide.
Holding Steem Power will ensure that your vote is worth much more and within that period you will also earn a lot more rewards on your posts which you could easily convert into Steem.
Did you know starting next year you could start getting paid to watch porn?
Take advantage of the high SBD price to get more of Steem on the Market. Invest in Steem Power and grab a larger chunk of the Steem Cake.
Thank you for taking the time to read this post. I do appreciate your votes and views immensely.
Support Community Curation Project @boosterke for Steemit Kenya with an SP delegation, Steem or SBD.
I like to think of someone holding SP as someone with a longterm vision while Steem is for one with a shortterm vision. I think it all depends with an individual's interest. Like, do I wanna make fast money and cash out or do I want to be patient enough to stick it out until the end when I can grow my power and get a considerable amount?
Couldn't have put it any better than this. Steem Power gives you a better bargaining power in the long run as compared to steem itself. I am glad you are Powering up as well.
Awesome read @deniskj! I would love more content along this line... Looking to create tools for Kenya.
Thank you. Are you a coder by any chance? We can collaborate on a project.
Its all a matter of belief, and the issue of long-term and short-term. Stil I would say that it is not a bad idea to cash out some of the earnings and get yourself a gift. Especially when you have been working so hard like some of us to get to the break even point and now the profit point. Good content as always. Also what is happening to the markets everything is in the red.
Definitely. That is what SBD is for. Cash out what you need and use the rest to power up.
The markets are just going through a phase. This is what happens when people get into a buying craze because of hype and they are left holding the baby while the whales jump ship with their millions. Always get in early not when the price is at its highest.
Like steem. :)
I need to keep reading such posts 👏👏👏