The cheaper Steem gets the more attractive it becomes
Steem is one of the only platforms in the entire ecosystem which enables a purchaser to buy it (covert it to Steem Power) and delegate that Steem Power to gain "passive income". Passive income is the slow consistent income which provides for stability in times of volatility. For example SmartSteem offers a calculator. As you can see by delegating your Steem Power you can achieve the passive income and even use some of it to buy even more Steem for compounding.
For instance:
If you have 50,000 Steem Power and you delegate it right now you will receive currently around $740 a month!.
Of course if you have 100,000 Steem Power and you delegate that you will receive $1481 a month!.
When Steem Power is $1.50 that means for $150,000 you can acquire 100,000 Steem Power.
Now consider Steem is paying a whopping 10% interest on Steem Power!! 10% of $150,000 is $15, 000 a year which is 15000/12 = $1250 per month!. In other words Steem currently gives more than 10% interest. What other investment in stocks, in crypto, anywhere, can pay a dividend of 10% and have so much room to grow?
Note: This is not investment advice, so make your own decisions after you collect and analyze the information provided.
Buying Steem Power is a high reward medium risk investment right now in my opinion
- Yes the price of Steem can go down.
- Yes Steem could face competition from EOS.
- The price of Steem can also go back up, way up. As no other token in this space pays a 10%+ interest just to hold it.
- The price of Steem going up means the payouts in Steem from curation also go up. So that would be like seeing the principal of the stock go up along with the dividend.
Unfortunately I don't have a million dollar to put into Steem. I wish I did. I see SMTs taking the price of Steem much higher in the future and I see this 10% interest for delegating Steem Power staying around for years along with more opportunities in SMTs which could grow the pie.