This is a post that I feel is very important for a couple reasons.
As I wrote a few days ago, I feel it is all of our responsibility to get wealthy. We are engaged with a foe that has a lot of wealth at its disposal. The establishment is going to do all it can to make sure things remain the same. For this reason, it is vital that we become an example for others to follow. We need to grow our accounts so as to be able to keep funding projects that generate more wealth to be spread to more people who arrive at this platform.
I feel the future of humanity is at stake.
The other reason why I feel this vital is for smaller accounts to understand the true nature of what is taking place. It is easy to get caught up in raw numbers since so few of us are reared with financial practices that lead to tremendous wealth accumulation.
Warren Buffett is regarded as one of the greatest investors of all time. Over the course of 50 years, the return he generated was 20.9%. This compares to 9.9% for the S&P meaning he more than doubled the return of the market.
Of course, anyone who knows about compounding realizes, especially over that long a time frame, the raw dollar difference is enormous. Over 5 years, starting with $1M, his total was $2.583,000 versus $1,603.000 for the S&P 500. The numbers get absolutely crazy when talking about about half a century.
The world of finance uses terms like ROI, ROE, YoY growth, and a host of other abbreviations that most of us could care less about. Looking at the Buffett example, we get a clue what the true focus should be.
The wealthy understand percentages. Nothing is viewed in raw numbers but in the percentages over a period of time. This is what the focus is. And it should be what the focus is for Steemians..
We need to understand the total value of the account is less important than the percentage of growth. That is what will ultimately lead to massive success. When we focus upon the percent return, we can then see that the only other variable is time. All can be accomplished if given enough time.
The other aspect in all of this is we need to focus upon what we can control. Markets do their own thing. This means the exchange rate will change. The value of any tokens compared to something else will fluctuate. We are all indoctrinated to think in terms of fiat. It is also time to change that.
STEEM is the base currency on this blockchain, thus it is a good idea to start thinking in terms of that. Also, many tokens will end up having utility on their own so the value of them should be viewed in that vacuum. While I acknowledge that we are standing in a fiat world, the more tokens that are in the hands of people, the greater the likelihood that changes.
Here is the bottom line: Steem gives each of us the opportunity to far exceed the returns of Warren Buffett.
In other words, we can dwarf the greatest investor of our time right here on Steem. That should excite everyone.
How is this possible? Simple, we are in the world of cryptoeconomics where abundance is the norm.
I will give you an example:
Presently, I am trying to amass ENG tokens. I want to have a better distribution of my tokens, hence I made that a focus. As an experiment, I marked down where I was at yesterday morning. I started the day at 655 ENG. Without adding any fiat, simply through rewards I accumulated, I was able to convert those tokens and add 20 ENG to my total. That equates to 3.05% growth for the day or a compounded amount of 23.4% for the week.
Obviously, ENG tokens may or may not be worth much in the future. This is an accumulation based upon my belief of where I think the project is going. It is a conclusion that we all need to make about every project and token we encounter. Many will not be worth our time. However, some projects will find great success and those supporting that project will end up doing very well.
Let us bring this to SP.
I looked up the latest upvote I could find by 
If we have an account with 1 SP, that amounts to 5.1% for the day.
That account, getting .051 SP daily would generate 1.53 SP in 30 days. Obviously, as a raw number, most would say big deal. This is how people usually look at it. However, if you realize that 1 SP turned into 2.53 in a month, or a gain of 153%.
Going one step further, on a year basis, that is 18.615 earned, or a gain of 1861.5%. That makes Buffett's return look down right pitiful.
Naturally, the larger the starting point, the smaller the percentages get. An account that started with 10 SP "only" gets 186.15% over the first year while one with 100 SP falls short of Buffett at 18.615%.
But here is the kicker: this is only one application using one token. I did not even factor in the amount of AFIT paid out each day. Nor did this factor in other upvotes associated with the post, this was only the Actifit value. With the curation trail, this could go up another .01 STU, adding another 3.65 SP to the gain for the year.
Obviously, the math does not work out for the larger accounts. Those with 100,000 SP are not likely to get 5,000 SP a day, every day. At that level, .1 or .2 percent is more likely.
I hope the shift in mindset is becoming evident. Notice how much different it feels to know that a smaller account can achieve incredible annual returns. With this outlook, where will the account be in 5-10 years?
Another factor in all of this is the conversion of tokens. We now have the ability to roll many of the tokens we receive into something else. This is extremely valuable. Thus, if we are not interested in token A, we can swap it for token B. Perhaps one really wants to grow the SP he or she has. This can be done by not only using Actifit, but also receiving other tokens that were made on Steem-Engine and converting them. This is a great way to add to one's SP stake.
The fact that we are seeing new projects coming on line each day means there are more opportunities being handed to us. As accounts grow larger, we see the rate of grow diminish. That is where other tokens enters the picture. While it is difficult for me to earn 3.05% off my SP account in one day, I can do it with the ENG token. Obviously, if I keep adding to it, this will not likely be the case in 6 months. The advantage then is there will be something else that I can do the same with.
I try to look at my accounts to see how they do on a monthly basis. This does not have to be rocket science but I suggest everyone adopt a similar mindset. Through this exercise, you can see the progress you are making. It can get discouraging when you see other accounts getting bigger amounts of a token while you are floundering. The question is are you?
A newly minted Minnow, one with 500 SP, might not think much of 20 SP in a month. Yet that is a 4% gain meaning, all things being equal, a 240 SP improvement over the year which is a 48% growth rate. That is double what Buffett was able to accomplish.
I do not care what the starting point is, a 48% annual growth rate over 10 years is going to amount to some money.
Personally, with all that is being developed on here, I feel this number is going to be nothing. Across all tokens, we are going to have many that the percentages, especially in the early stages, end up in the thousands of percent.
This is what cryptoeconomics is all about. We are in an area of abundance as opposed to the world of scarcity.
To me, this is a vital message we need to convey. People who come here with the intention of generating wealth so as to grow the pie bigger are an example.
And it is available to everyone.
I know the math is not precise and that the time frame of Buffett along with the amounts he is using make it harder to get astronomical returns. For all you uptight nerds, the theme of this post is what is crucial, not the exact math and other parameters. 😁
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