From my writings this week you probably have noticed I'm struggling with my thoughts.
I think the direction in which the blockchain is heading is fantastic with more entrepreneurs joining the blockchain.
In the long run I think this is the best move for the platform but not everyone agrees with that.
There is something positive about this too because the fact that we can talk about this blockchain on this blockchain tells me how good it is.
Right now every content creator is feeling it. Something is off. The payouts are going down yet the STEEM price is not so low.
Everything seems a little harder than before.
It's a perfectly normal consequence of blockchain.
More people are mining STEEM so the difficulty has gone up.
It's just going a lot faster then I thought.
It means that every STEEM you obtained so far was easier earned than it will ever be.
I'm very patient though.
I have been here for almost 2 years since I joined and I'm willing to be patient for years to come.
I have been trough every negative and happy period on this blockchain.
What I do know is that every STEEM will be harder and harder to obtain for everyone in the future.
In my 2 years here I have seen a lot of good people power down from frustration or fear or maybe the thought that they could always earn it back again.
I think that's a mistake if you believe this blockchain will be bigger and better in the future.
Steem tokens will be harder and harder to earn in the future.
The reason is simple:
You have more users/entrepreneurs competing over a reward pool that is fixed.
Now, I'm talking about the actual tokens (STEEM) not the value of the payouts in US dollars.
The payouts in US dollars might very well go up when the STEEM price increases but you will get less STEEM for your posts.
Example (with very simplified calculations):
Imagine the STEEM price is $1 and you have a $10 payout. That would result in 10 STEEM.
Now imagine the price of STEEM at $250 and you have a $250 payout. That would result in 1 STEEM.
or
Imagine the price of STEEM at $250 and you have a $10 payout. That would result in 0,04 STEEM.
Pretty simple! Right?
It's something you need to consider before you sell your STEEM.
In other words.
It basically means that anyone would have been better off keeping their STEEM if they sold under the current price of $2,30. (And that's not even taking in consideration how much more STEEM could have been generated by putting it in STEEMPOWER).
Only if you put those earnings into another investment that increased more or sold STEEM at a price higher than $2,30 would you have been better off (for now).
To show how 'easy' it used to be to earn STEEM for some I broke down the most successfull post in Steemit history under the circumstances from then compared to now.
The most successful post in Steem history in terms of payout value.
The most succesful post on the blockchain was this one here.
The famous makeup tutorial.
The payout for that one post was $31,543.
Back then that resulted in the following:
13,329 SBD + 9564 STEEMPOWER.
The price of STEEM closed on the markets that day at $3,25.
So the total value in USD for that 1 post was: $13,329 + (9564*$3,25) = $44,412
Not bad for one post!
Of course the whole blockchain was different back than.
We had an n^2 curve, a TWO year power down period and a inflation of 100%.
How would a post that high break down today?
$31,543
$31,543 * 0,75 = $23,657
SBD = $23,657 / 2 = 11,828 SBD
SP = $23,657 / 2 / current Steem price ($2,30) = 5142 SP.
This post would have resulted in: 5142SP + $11828 SBD
Now these types of payouts are no longer possible unless the STEEM price goes up to roughly $40-$50 (I estimated from a top trending post of around $1000 payout right now).
So realistically a post of $31,543 would break down to $11828 SBD + $23,657 / 2 / Steem price ($40) = 295 SP.
It's easy to see that no matter how high STEEM will go from here, earning it will be harder and harder.
I am a witness with our developer group @blockbrothers for the Steem blockchain. If you want to support us I would appreciate your vote here.
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