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RE: Consider Buying Steem. Be an Owner, not a Renter.

in #steem7 years ago

Yea I do have a regret, when I got on steemit the price was 14 cents and I was so new here I didn't know if that was good price or not. So I didn't buy any right away. then a month later it started climbing and it never went to 14 cents since then. Well steem at this price I feel is still a good investment like you said. I don't understand what you mean when you say the more steem power you have means more steem? Does that mean if I have more steem power someones upvote to me will give me more steem power then if I had less steem power?

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No, it means as new currency is created by the blockchain, 6.7% "interest" (6.7% times the total 9% Steem Power inflation) is paid to you based on your holdings in the form of Steem Power. To view this in real time, load up the wallet of a whale, note the amount of Steem Power they have, then reload the page a few minutes later and watch it increase.

Currently, even just holding Steem Power gives you 6.7% more Steem over the course of a year.

This is incorrect Luke. The current annual inflation rate is about 9%. The stats from Steemdb.com represent the allocation of that 9% across all the participants in the network. So the actual annual "interest" of holding Steem Power is 9% x 6.7% = 0.603%.

The distribution of the new tokens is currently still distorted by HF 19 the actual Steem Power interest should be 9% x 15% = 1.35% per the new blockchain rules enforced since HF 16.

Ah, shoot, I certainly don't want to spread incorrect information! Thanks for the correction. Yes, I see that's just the percentage of the newly created Steem that is allocated to Steem Power holders compared to other groups.

I will edit my post.

oh ok that makes sense now thanks for explaining. I like your posts all the time.