Could someone give me some explanation as to why anyone would convert BTC to STEEM POWER? (not STEEM which is debased 92.5% to 100% yearly)
arhag's (currently #1 ranked) post summarizes some of the thinking, and also I'd suggest my comment there for a bit of elaboration. In essence Steem Power is a prepaid subscription to network access. By stocking up on Steem Power now you are speculating that access to the network will be worth more to more people in the future, who will then be clamoring to buy tiny slices of your Steem Power to get in or to maintain their access. Obviously, that is a very risky bet (all cryptos are, including Bitcoin).
https://steemit.com/steem/@arhag/where-does-the-money-come-from-a-look-into-the-economics-of-steemYou are basically going long for 2 years... in a crypto currency.
Seems extremely stupid to me.
Average of one year, assuming you start liquidating right away, but still, I agree, it is a very risky bet.
Price weighted average, but you wouldn't be able to decide when to sell. You'd be pre-deciding to sell early (or late).
You can sell your account too, probably at a reduced rate (though it would depend on your standing in the community).
@smooth, how long do curator's get payment on posts? Just want to know if that figures into the analysis.
I'd love to see a market for selling accounts develop. But since you can't transfer SP, then it means you really can't sell them in a secure way. So no such liquid market will develop. You basically have to trust someone to let them have your account and change the password. Someone has to go first and take all the risk. I suppose you could do it with trusted escrow.
Some sort of smart contract escrow is probably possible as well. After all, the transfer is a transaction on the blockchain which can be verified to have occurred.
Edit:There still seems to be an option to recover a stolen account. So, only a fool would buy an account. The seller could initiate this process after collecting the funds.
It just means such transactions take 30 days to close escrow. After that transfers are irreversible.
From my understanding, when you start powering down, you still have Vests, so you still have a share the 9:1 steam going into the vesting pool. The amount of Steem that you get each week should increase. In the end, you are going to get much more Steem than what you put in. You can hope the market does not plummet faster than the slow increase in the amount of coins that you receive each week.
Correct. The portion that hasn't powered down yet is still considered Steem Power with all the usual benefits.
@smooth, how long do curator's get payment on posts? Just want to know if that figures into the analysis.
Until the first payout which is currently 24 hours or longer but is being changed to 12 hours or longer. In practice active posts stay open longer before the first payment (2 days or more is common), which is the reason the initial deadline is being cut. Only quite inactive posts will close after 12 hours.
Currently authors get new payouts daily (with same delay rules, but these are much less likely to be triggered for older posts with slower activity) for votes after the first payout, but curators do not. This is being changed to have a single 30 day period for authors to collect new votes after the first payout. Curators still won't get rewards after the first payout.
