First of all, please excuse the clickbait, I couldn't refrain myself. Second, this post is really about a financial indicator from the steem.supply website, and third, yes, under certain circumstances, closely paying attention to it can significantly increase your Return of Investment (ROI) from this platform. And by investment I understand mainly writing.
What Is The "Potential Growth" Indicator?
In top left corner of the Steem.supply website, there as a short piece of text about the total worth of an account and, next to it, another one about potential growth.
Total worth of an account means everything that the user holds in his 3 "drawers": liquid Steem, Steem Backed Dollars (SBD) and Steem Power.
The potential growth means how much the account will grow, in percentages, after the user receives the rewards. Please be aware that we're talking about potential growth, as well as about potential rewards. There's nothing sure about those rewards, until the blockchain actually distributes them.
So, why is this so important? Let's do some use cases.
A Minnow Use Case
I have to tell you that @teodora, who's info is pictured in the screenshot below, gave me the idea for this post, after telling me the other day how addictive is the app, but how it also lacks in "tidbits". So I thought to write a post (or maybe a series of posts) to clarify the importance of the data in steem.supply, in human language.
As you can see, @teodora, as a minnow, has a total worth value of $361 and a potential growth of 1.24%. This percent is per week, by the way.
Let's do a few calculations:
53 (weeks) x 0.0124 = 0.6572. Or, put in percentages: 6.572%.
That's @teodora per annum return (or APR). It's very hard to find a bank with this potential interest, most banks are giving between 2% and 3% interest at your deposits. And be aware you have to block those deposits in order to get that interest.
In layman terms, it means that @teodora can have, at the end of the year:
$385.52
(for all te compound calculations I'm using this site: thecalculatorsite.com)
Not bad. Anyway, much, much better than keeping that amount in a bank.
A Reasonably Large Dolphin Use Case
Let's move a bit upward. @timcliff is a reasonable large dolphin, meaning his account value is in the tens of thousands. By the way, @timcliff is also a witness and a very active community member, many usability improvements of the platform are coming from his pull requests on Github.
Tim has an account worth of $37,605 and a potential growth of 6.06% per week.
Let's see how this is per year:
53 (weeks) x 0.0606 = 3.2118. Or, in percentages: 32.118%. Ups.
Let's see with how much Tim will end up after one year:
$51,840.71
Double ups. Not bad. Not bad at all.
A Whale Use Case
The third use case it's a whale, or an account measured in hundreds of thousands. @good-karma is one of the most active Steemit members, the author and maintainer of the mobile app, eSteem, and a long time top 19 witness.
@good-karma has a an account worth of $142,577 and a potential growth of 4.35%.
Let's do the math again:
53 (weeks) x 0.0435 = 2.3055. Or, in percentages: 23.055%. Interesting.
Let's see how much this will be in one year, if the potential growth indicator remains the same:
$179,533.07
I rest my case.
Please be aware that, in case of big dolphins and whales, most of the time there are significant expenses involved. If we're talking about a top 19 witness, there's quite a special infrastructure needed (at least one backup witness and very good machines / internet connections) and if we're talking about developing and maintaining large apps, like the mobile app, then we're talking about top coders, special testing infrastructure and so on.
These accounts are pretty much full time jobs / small startups.
Also, this doesn't take into account any variation of the STEEM currency price.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
https://steemit.com/~witnesses