Here's Why You Should Power Up As Soon As Possible!

With rewards being split 50-50, are there good reasons to immediately convert Steem Dollars to Steem Power?

After doing some calculations today, and assuming that you're not in a rush to liquidate - the answering is a resounding yes!

You should buy up Steem and power up as soon as possible. Well hold on, now I think I know what you're thinking about. Just like me, you're probably wondering if you should spend your hard-earned Steem Dollars now, or wait for a better price? Or keep trading Steem to build up more Steem?

So now the real question is - what's the opportunity cost of waiting to buy more Steem Power?

Let's start dissecting this question. Have a look at the chart below:-

steemcalc5d2ac.png

Look at time A: This was the point in time when I had 1500 Steem Dollars. Buying at this time I would've bagged myself an extra 1500 / 4.6 = 326 Steem Power. If I wait for time B, which is 10 days after, I would've gained 1500 / 2.3 = 652 Steem Power.

Now, considering that the Steem network distributes more Steem Power to account holders propotionately over time, it's safe to say I would've gained some extra Steem Power at time B if I actually bought Steem Power at time A.

How much extra? Definitely not from 326 Steem Power to 652 Steem Power in just a matter of 10 days. In fact, if I had bought at time A, that 326 Steem Power would double up in a year (I think). So I would have gained an extra (326 / days in a year) x 10 days = 8.9 Steem Power from buying at time A at a more expensive price.

So clearly, in this case, waiting for 10 days to buy at time B would be a better choice as you would've gained double the Steem Power compared to a purchase at time A. Plus, buying at time B in this case would've given you far better returns as Steem Power increases over time.

But here's the catch, everything always looks better at hindsight. For all we know, the price probably wouldn't have even dropped to 2.30 USD / Steem at time B. But it happened. Steem's market cap at ~350 million USD is still a baby with its immense potential. The price could've skyrocketed again and you miss a relatively cheap buy at time A. Consider a benchmark like Angry Birds being valuated at 1.5 billion USD. I think Steem has no problem surpassing that figure. Buying now would mean about 4-5x increase in your Steem value.

Also consider the fact that it takes intense discipline to monitor and decide if you're trading and waiting for the price to drop so you can maximize your Steem Dollars. Being a minimalist myself, I'd consider that a huge timesink, and time is very valuable. Even more valuable than money. The optimist in me says buy Steem Power asap!

Especially now, if you look at the chart above, it clearly show that Steem is currently at the support & resistance line. It's a very good entry. If you are not in any rush to pay off bills or whatever, considering buying more Steem Power now. I've already gotten a fair share Poloniex :)

Note: Please do not take this as trading advice. Just being optimistic about Steem! And I also have some buys at the lower end.. it's the chinese trader blood in me..


Follow me @kevinwong

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