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Future value vs present value: How to generate your income!

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@dtrade
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If you are earning 100 LEO a day through blogging, curation, mining, winning contest etc., then how much is your income? Is it $78 (100 x 0.2 Steem x $0.13 x 30 days) per month or per month value based on when you sell those earned 3000 LEO?

Answer is that when you sell your LEO and Steem. Your real income per month can be calculated based on future value when you will finally sell. However, there is a small probability it may never reach that threshold. Therefore, you should set a value based on history, intuition and pragmatism.

Now imagine that in near future, LEO reached 0.33 Steem where LEO touched several times this year. Steem found a floor at $1 similar to 13 cents these days. Then your income from current month would be staggering $1000 (100 x 0.33 Steem x $1 x 30 days) which is quite possible.

However, by assuming to earn $1000 income per month, you should not borrow and spend.

Rather you should wait patiently and when your goal is reached, you should execute. For example, you saved 6 months of income, then the price floor is reached your desired range, then you can sell and spend for next 6 months. If floor stays or goes above, then you can keep selling and save the rest for future downhills.

By cycle, when another bear run returns, you stop your selling and keep saving for future.

Bull or Bear start and endDateLow or HighDaysGain(+) or loss(-)
Start of Bull run#1Apr 18, 201664 cents0.000
End of Bull run#1/Start of bear run#1Jul 20, 2016$4.6094 days+718%
End of Bear run#1/Start of Bull run#2Mar 11, 20177 cents234 days-98.50%
End of Bull run#2/Start of Bear run#1Jan 03, 2018$8.50298 days+12143%
End of Bear run#2 ??/Start of Bull run#3 ??Nov 25, 201910.2 cents692 days-98.80%
End of Bull run#3 ??/Start of Bear run#3 ??2020/2021 ??$1-10 ???100-700 days ??+700-12000%??

However, it is easier to say but hard to execute.

If fact, most of the LEO or Steem investors are waiting for those moon days. It is no wonder that 90% of LEO and 65% of Steem are powered up. LEO is very at the very early stage of growth, on the other hand, Steem is a the mid stage of growth and by comparison, BTC is maturing.

For me, and I recommend others that if you are planning for monthly income from Steem or LEO ecosystem, then you should have a master plan. Bear and bull runs are common but severe for new asset class like cryptocurrency.

Sometimes you have to wait too long, but sometimes it may surprise you. Who would have thought Steem would gain 100X in 298 days and lost 98.8% of its value in next 700 days (See the chart above).

Related readings:

  1. Can LEO be a $1 TOKEN--- one day?

  2. Investing in Bitcoin vs Steem vs LEO: gain vs risk

  3. Is BTC heading towards $5K and Steem 7 cents, its all time low (ATL)?

  4. I have a secret: my past three predictions/investments in Cryptocurrency were correct but executions were wrong. Will my fourth prediction work and can I execute this time?

Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions. This opinion is only for educational purpose.

Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

Thanks for reading. @dtrade Cryptominer , occasional trader and tech blogger since 2013

Posted via Steemleo | A Decentralized Community for Investors