what exactly does buying steempower or powering up accomplish. till date, i am still trying to fully this out. apart from curation rewards, why do people want to power up. i have never withdrawn and have most of my earning in steempower but i dont think i see any difference btw now and when my steempower was say 50. why dont people buy steem or or keep it steem instead? what happens in the long run if you have steem power? why not steem and let it just keep fluctuating? or doesnt steem power fluctuate according to steem fluctuation?
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STEEM Power gives you two measurable benefits in terms of rewards.
Regarding curation, the more SP you have, the higher your rewards can be. All other factors being the same, an account with 1000 SP will earn more curation rewards than an account with 100 SP for any upvote. A 10,000 SP account will earn more than a 1000 SP account. Better curation habits can yield higher results, but generally speaking, more SP should earn you more curation rewards over time if your voting strategy is the same.
The other benefit of more SP is how much your vote is worth. The higher your SP, the more you can earn with a self-vote...and likewise, the more you can give to others when you upvote them.
Other than those two reasons, the benefit is bandwidth use/limiting, but that doesn't really affect anyone but a very tiny fraction of users. It'll be a bigger factor for businesses, should they ever begin using the STEEM blockchain, due to the potentially large amount of daily transactions that they would need.
Thank you.
Steem Power collects interest correct?
Yes, it does collect interest, but that's mostly (or only?) to cover the loss in dilution from the daily inflation. So, it's basically a wash.
Seems like it only covers dilution which is not a "wash" compared to liquid steem.
Of course not, compared to liquid STEEM. I was simply pointing out that the interest from inflation isn't actually "interest." It just keeps you at the same number of vested shares from day to day.
Right, glad to have this finally sorted out. I feel the faq needs updated a bit.
thank you david. i just saw this. so if one does some earning by upvoting his post. oh okay. how do i find out how much my vote is worth?
You can check this out, seems off by a decimal point though. My votes are work about two and half cents right now.
http://www.steemdollar.com/dollar_per_vote.php?name=codydeeds
So your amount of steem power determines the amount of weight your upvote has. Higher the steem power, the higher the reward the author receives when you give them an upvote. Steem power also receives interest to protect it from the inflation of steem where just the spendable steem does not. To convert steem power back to steem takes three moths and you get a portion each week. This is good for me because I have a weak hand when trading, the power down process ensures my patience.
Let me know if that covers it for you, thanks!
hmmm a lot said. so when does the interest happen. i dont think i have noticed that. and let's say i upvote someone and he gets 10$ for instance, does that do me any good too. if so what good?
Upon further investigation powering up your steem converts it into vests. The amount of vests stays the same but you will get more steem for them in time due to inflation. This is where the perception of interest came from. That $10 does you good if it is content you would like to promote to the top of trending. If it garners more votes from there you receive a higher curation reward. You also have the warm fuzzy feeling of helping someone if you are into that sort of thing.
thank you. i am definitely into that sort of thing. that is what life is about! but it also does help to know that my vote has some worth, so that it accomplishes helping someone.
These are all good questions that I would, also, like to know.
Resteemed to follow this conversation. Thank you.
Let me know if that answer covers it.