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RE: It’s so easy to become a millionaire with Steem

in #steemit • 8 years ago

It is always nice to have these things explained in detail. But let's not go crazy yet and look 5 year ahead. Lets just see what happens within 3 months. Looking 5 year ahead is a bit too far away. 5 year ago people predicted bitcoin to be worth millions by now. In the meanwhile I just converted all my earned steem to steem power. I prefer to invest in new ideas rather than be short term greedy.

8 years ago in #steemit by
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     8 years ago (edited) 

    Short-term planners can’t benefit nominally from the exponential growth of compounding, because with exponential growth something very small becomes very large much later. Note the example of the lily pond which consumes 29 days to become half covered yet the final 50% coverage (nominal growth) all occurs on the 30th day.

    We do have to consider the possibility that Steem will fail and thus if we have invested a significant amount of our net worth, then some short-term prioritization would be appropriate.

    However, the scenario I outlined in this blog post is very meager $400 initial investment and only $2 a day in blogging effort, which is all probably compensated by the learning experience and social interaction. So long-term approach to that scenario is not only appropriate, it is forced because 50% of blogging earnings are paid in STEEM POWER which requires 1 year weighted average time to cash out.

    The reason I wrote the blog post was to encourage by explaining a mathematical reason to just use and enjoy the site, regardless if their blog posts are earning only a couple of dollars per day on average. Steem is an experiment, and we are all learning from it.

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     8 years ago  

    I understand where you are coming from. And I am following your footsteps. I didn't make a lot of money yet on steemit but the little bit I gained ... 12 steem ... I totally converted it into steem power. I love to invest in new technology, especially when I see a lot of potential in it. So I am not on steemit as a short-term planner. And while I enjoyed reading your post and it is always interesting to predict what might happen ... I wouldn't go crazy yet and just assume we will become millionairs within 5 years. I consider your post as a nice explained good read and I hope your prediction will be 100 % right. But I am not celebrating it yet. Lets just enjoy steemit right now and let the future show us what will come :-)

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       8 years ago  

      In hindsight, I wish I had explained in my blog post that in general being invested in blockchain and crypto-currency, is one way to be part of the decentralization revolution that is likely to enrich everyone who is in the sector. Steem provides the average person a way to get onboard blockchain technology doing an activity that they understand and enjoy, while simultaneously also provides the derivative benefits of social networking, such as building new relationships, learning, entertainment, etc..

      I will quote from a post I wrote on Bitcointalk recently:

      I had the same appraisal. I did expect a giant exhale (even back at $700 - $1000 on the way down), which we did get down to $150 for Bitcoin. (I expected it to potentially bottom lower perhaps $50)

      Right now I expect something really big to happen in CC soon (well we already had Ethereum this year so I expect more like that and much bigger). Perhaps within the next 6 months to a year. Not just any specific project in my mind as a possibility, but I mean I think we have reached critical mass of ideas and now we are just waiting for some project(s) to put it all together.

      We also have a potential collapse of the global economy 2017 - 2020, so this could perhaps cause some short-term selloff (but this isn't certain also), but I don't think anything will stop the coming juggernaut of blockchains.

      You want to be getting yourself aligned in CC/blockchains to become a $multi-millionaire if you aren't already.

      And if you are already a millionaire and don't have a significant postion in CC/blockchains, then you need to start dollar cost averaging in asap.

      Edit: some others (e.g. @smooth at least in past and to some extent also myself) would have argued that it was very unclear if CC/blockchains could become anything more than an experiment. However, I think I see now that it is impossible that CC/blockchains doesn't disrupt the existing systems, regardless of whether we don't attain the nirvana of perfect decentralization and trustless attributes. Because at the worst, CC/blockchains enables many more degrees-of-freedom in how to attack issues of governance, payments, finance, capital formation, etc.. It is just blowing my mind! Great time to be involved.

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