Why four weeks power down makes sense though some top witnesses are against it?

8 months ago
(edited)
3 Min Read
582 Words

First of all, Steem is not investor friendly, but speculator friendly. It encourages speculators to buy Steem rather investing in it.

How?

When Steem reached as high as 22 cents from 14 cents, a 50% increase, who benefited the most. The speculators who stored Steem in exchanges and sold at a good timing, Hopefully, they bought back. Or, they may have bought 16 cents seeing the uptrend and back to BTC again.

Now Steem is back to 15.5 cents.

power_down.png

Does it help anybody who are locked for 13 weeks? Nope. In fact, they are doing the hard work to uplift Steem, but speculators are taking benefit of this sudden spike. This investors cum curators are earning less than 12% APR on year basis. The 50% gain in one day seems absurd to their hard work.

It gives signal to speculators that Steem is good as a liquid and who are short term holders.

No wonder why 128M Steem is in liquid form though people can earn 12-18% APR on their Steem (e.g. @steem.leo tribe provides 18% to its delegator). This 12-18% is literally worthless when you can time those 20-50% spike and get back to Steem. For example, if one trader times correctly two 30% gain a year, he has gained 6 years of hardworking (i.e curating) in Steem.

It shows that trading is better requirement for Steem investors to increase their Steem than working hard to curate. Ironically, according to Steem's philosophy, curating (i.e. investing) should be main selling point.

Now does four weeks helps instead of thirteen weeks. Yes it is better than 13 weeks. For example, I had 10K Steem power when Steem hit $8.5 on January 3rd. I did not sell any Steem on that time due to greed and inexperience, I thought Steem is going to moon (e.g. $100). Later I bought 10Ks of more Steem, but still my DCA for Steem is around 50 cents. Theoretically, if I started power down for 13 weeks I could have earned $50K and at 4 weeks $65K. Most probably I would buy back Steem with profit in few months since I was a hardcore Steemian (i.e. my main account is 3.5 years old). At least it would given me $15K or 40% better advantage.

Probably, the trauma of not selling near ATH has inspired speculators to store Steem in liquid. Imagine, some weeks when Steem will rise 1000% or 10X, they will get the benefit of staying liquid and not contributing to Steem's philosophy (i.e. curation).

Therefore, I support 4 weeks power down proposal and voted for it with 60K SP. I also like @theycallmedan's proposal to instant power down with 5% burning fee. All these measures will attract investors who will know they have a chance when Steem overshoot. These hardcore investors will also buy back Steem at later time to provide support. Therefore, giving a slight help is much better proposal than changing nothing.

Please vote for any of the proposals for your voice to be heard at https://steemproposals.com/proposals:

PROPOSAL IN FAVOUR:
https://steemit.com/steemdao/@thecryptodrive/hf-proposal-vote-to-reduce-power-down-period-to-4-weeks

PROPOSAL AGAINST:
https://steemit.com/steemdao/@thecryptodrive/hf-proposal-vote-against-reducing-power-down-period-to-4-weeks

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