I have been wondering how does the steemit work on prices. As I was doing a survey I found this wonderful answer hope it would help out the newbies. It is so transparent that no one can steal your earnings but they can only view your earnings.
How does Steem Profit Calculator Works?
This Steem Profit Calculator uses a simple mathematical principal to calculate the ROI of Steem. It fetches the historical Steem price from the database and compares with current Steem Price and calculate the profit or loss made on it.
It does this simple calculation get the amount Steem you would have got by investing x$'s on that day ($x/price of Steem. Now it calculates the current price of that amount in USD (current Steem price * amount of Steem purchased in past). Now the return on investment (ROI) is calculated by dividing amount in USD today by amount invested and multiplying it by 100.
Mathmetical logic behind the same:
$invested_USD = USD invested in past date;
$historical_STEEM_price = Price of STEEM in past date;
$quantity_STEEM = Quantity of STEEM in past = $amount invested / $price_on_that_day;
$price_STEEM = Current price of STEEM;
$USD_today = ($price_STEEM * $quantity_STEEM) - $invested_USD;
$ROI = ($USD_today/$invested_USD)*100;
And if you want to check future price of Steem you can check it here: Steem Price Prediction. This predictions are based on various algorithms applied on the historical price of the Steem.
For more information, you can refer to the link below,
https://steemkr.com/steemit/@tunnelrat/new-steemit-tool-steem-income-calculator-projected-sp-growth
