STEEMIT BE CAREFUL WHEN YOU DECIDE TO POWER DOWN

in #steemit9 years ago (edited)


Dont end up in the POOR HOUSE Please read all of this article. I posted this on Andrarchy video Steemit Vlog #4: Steemit 101 - Steem, Steem Dollars, and Steem Power
and I think he did a great job of explaining it but there are still many unanswered questions.
I would like his opinion and others so hopefully we all eventually come to understand how this all works .
This was my reply post on his video Andrarchy your saying 1 steem power = 1 steem when you power down payed out in equal payments over 104 weeks so that is 0.0096153 steem per week if you powered down 1 steem power .
Here's an example let me know if this is correct lets say 1 steem is worth 5.00 dollars on bittrex so therefore 1 steem power is worth 5.00 dollars
1 steem power = 5.00 us dollars
1 steem = 5.00 us dollars
So when I power down lets say 1000 steem power and steem is trading for lets say 15.00 dollars on bittrex 1000 steem X 15.00 dollars = 15000 dollars so 15000 dollars / 104 weeks = 144.2307 dollars a week for 104 weeks assuming steem was a steady price of 5.00 us dollars every week for 104 weeks.
Now this leads me to another question on the day I power down the 1000 steem power is my 1000 steem power converted to steem at the price of steem that day and then payed out over 104 weeks or is it prorated every week for 104 weeks ???
As we all know cryptocurrencies are very volatile so I for one think the community needs to know if your steem power is priced all on the powered down day or prorated at different prices every week , so we each can make are own plan of powering down . So until we know the whole story Don't count your chickens ( STEEM ) before they're hatched.
I want to thank Andrarchy for his response Here is Andrarchy response
" After you elect to "power down" X steem power, a week later X/104 IOUs (Steem Power Units) are removed from your Steem Power account and you are transferred X/104 Steem. Those X/104 Steem will be worth whatever the market rate for Steem is in the present moment. So yes, if you power down and a week later the value of steem plummets right before you are going to receive your Steem payout, then yes the Steem you receive will have a low price. BUT if 3 days later the price of Steem spikes, then obviously the "cheap" Steem you received three days ago will now be worth whatever the new price is. For steem power the time at which it is converted into Steem is IRRELEVANT. To understand this, think about Steem Dollars. For Steem Dollars, the time at which you convert IS relevant. For example, let's say Steem is having a bad day and it is trading for 10 cents. That means that if you cash out 1 Steem dollar, the Steem system will give you 10 Steem. If the next day the price were to jump to 50 cents, the Steem you received yesterday went up in value 500% and you made a very good profit. And if you were to cash out another Steem Dollar on that day you would only receive 2 Steem. None of this happens when you are dealing with Steem Power because 1 unit of Steem Power is equal to 1 Steem. Price is irrelevant. "

       The moral of this story is don't count your steem before it's sold and in the bank.

So be careful you don't spend your steem power until the cash is in your hand. GOOD LUCK TO ALL and I think all who work at this will make some money.

ME-TARZAN

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Hi Me-Tarzan
The way I understand it is that the system is designed in such a way that the value of Steem will depreciate over time, let's say it's 5$ at this time it should be 50c in 12months and 5c in 24months. Reason being the amount of Steem available on the market is doubled every year. The only way the price will stay up there will be if it grows exponentially and more Steem are being bought by people than what is available. Let me know what you think?

sbq777t I would hope that it would not depreciate that fast from 5$ to 5c in 24 months.I Do agree the price will stay up if steemit grows exponentially. I do not fully understand the doubling .I think there are around 82 million steem now and if it doubles over 1 year then that is 164 million . Now this is what I do not know does it double again the next year from 164 million to 328 million and so on .would like to know your thoughts.

those details are very soon to be adressed.
as steemit will grow the price on exchanges will stabilize there won't be any significant change over a weekly base.

Right now we are on a hype of speculation it can go either way to be honest.
but it does trending up and that is healthy.

we are the new kids in town.

Thanks for your reply skapaneas ,I wrote this to help all in the community to realise that when they power down the money they end up with could possibly be much less than they were thinking they had on the day they powered down . because it is spread out over 2 years and price can change alot over 2 years.And yes they could end up with much more if the price continues to rise . therefore I say better safe than sorry and don't spend until you have it in your hand.