Wouldn't it be great to have been able to buy into Microsoft or Apple when they were founded? I have never invested into a startup but, I have worked with a few over the years at different points of their cycle, from friends in their early conceptions to those struggling to go international. But, when people see the success and hear of the angel investors who made a bundle, do they realise the reality?
For the most part, startups are not overnight successes, they take time and effort and a whole lot of development in between having the concept and having a product. There are two risks for the investor here, firstly, will it succeed which is something only time will tell and secondly, do I need this capital anytime soon?
What many people do not realise is that when investing into a start up, the capital seed could be locked up for years, maybe even a decade before a return starts to roll in, if one comes at all. It is not like buying shares where there are dividends paid as there is nothing yet to divide. It is quite a risky venture to lock capital into a project yet to create an income.
This is where the concept of Steem is light years ahead in my opinion as if one were to invest into Steem, it can immediately start providing a return through curation. The return on curation alone is better than most traditional portfolios as it compounds and buys continually into a (hopefully) appreciating currency. But, an investor who invests themselves into creating some decent content and being a part of the community, and those returns become astronomically better.
With every day of curation and posting earnings through being a part of the community, the risk of the investment goes down. Yes, it goes down because the return effectively lessens the investment costs but, being an active part of the community who is interested in the future success of your investment, means that the risk of failure decreases, potential for success goes up. Lessening risk by both reducing investment and raising the chances to succeed, very cool.
Steem is still in the early stages of development and although interest is building, it is a long way from being truly mainstream. This makes buying into Steem a lot like startup investing but, there is another added benefit. The purchase buys more than a claim on future earnings, it buys the ability to direct how the platform grows.
As said, the curation return is good but, what the curation is earned upon is important and should be vitally important to an investor looking for their investment to mature into something much, much larger. Having the ability to vote on and help other people looking to develop the platform is like insurance for success. It is the supporting investor who not only provides capital but the encouragement required for the team to work and grow.
But, those earning also have a chance to invest further and rather than taking all the SBD out to market, they could pick up a little Steem here or there also. Not only will this strengthen their curation and self-voting, it will be a hold coin for the future and the more who are truly interested and supportive, the brighter that future looks.
This may not be possible for all but, it is definitely possible for some. However, even those who need the income from Steemit should remember, this is NOT a viable job for most and shouldn't be seen as such. This doesn't mean one shouldn't spend time trying to make it so though.
I know one millionaire startup entrepreneur who during his first start up, was working a full-time job at a grocery store stacking shelves to make ends meet. It is not uncommon. Even those in the direst of circumstances should remember that not too long ago, Steemit didn't exist yet they survived. Was it pleasant, probably not.
If they consider that and instead of taking all they can, use some to improve their immediate situation, reinvest some of their earnings, spend a little effort producing quality content, comments and interaction and be part of the community, there is a chance that in the not too distant future, Steem can be a viable and more reliable revenue stream and, one where they can help others in their real world communities too.
For those that take all earnings out, when Steem increases significantly in price, not only will your account look similar to it does now but, you will still be in the same situation of struggle. Depending where you live, even fractions of Steem reinvested will likely have a significant impact on you standards of living in the future.
In cases like these, it is possible to be both investor and entrepreneur by using the earnings to invest into a startup environment and working at producing for the same startup. Decent content has a chance to provide both an easing of struggles and the capital to invest a little deeper, as does good comments and worthy engagement activities. Developing an approach and investment philosophy can go a long way to understanding how the platform operates and where it could lead and building the community is of course vital, but I will look at some of that in another post later.
At the end of the day, Steem has the world in front of it and it looks bright, the only thing that is stopping it from really becoming a super power in not only the cryptosphere, but as a full social media contender and financial operator, is our own short-sightedness and unwillingness to invest ourselves into it.
We want all the upside of being in a startup, with none of the down. Those that do not help pull may get some short-term gains but will pay long-term prices as instead of owners, they will be consumers.
Taraz
[ a Steemit original ]
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