Vlog 340: Things you should have in place before living of the blockchain.
A lot of people are living of the blockchain.
Myself included and it's a dream to live of digital tokens that somehow have value :)
But I took a very well calculated decision though before deciding to do this.
So, before you decide to live of the STEEM blockchain and quit your job I can give some advice and tips you should have in place before you take this step. (I'm a person that doesn't like risk. That what this is based on.)
Make sure you can live of whatever your steempower can generate. How much you need I don't know but make sure you have total control over it. Don't rely on votes from others for your income or delegation. If you can't generate what you need by yourself it is too great a risk to live of the blockchain.
If you can generate enough at this moment to live of make sure it is also enough for when the price goes lower. (or use tip 6).
If you need to power down to live of the blockchain you are not ready. If you could live of the blockchain before when prices were high but now find yourself powering down to pay for bills you are in BIG trouble. Start looking for other sources of income if you solely relied on STEEM for an income.
Make sure that your Steempower grows with inflation every year so you can keep generating a similar amount. A.k.a part of your STEEM earnings you must power up. (currently 9.5% a year of what you have in Steempower).
Having other investments in crypto is smart. Don't rely just on STEEM.
Make sure you have a buffer somewhere else outside of crypto.
I talk about it more in my vlog.
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Mark @exyle I am not there yet but I know if you add to your STEEM it is like a Snowball it just gets Bigger and Bigger............
If STEEM's price keep decreasing or steady, one will need more SP to generate similar amount of VP for selfvote and curation. Since more STEEM are powering up everyday and STEEM's inflation rate is decreasing, rewardpool is a getting smaller. One needs more SP to sustain similar earning which is not sustainable.
However, buffer for 6 months income can help since it is long enough for STEEM to up or down 3X. Sell some at high, consume some, and buy some STEEM back when it is down. Its easier to say but hard to implement.
Other income such as Masternodes, crypto-trading, mining can diversify the risk too.
Great information. I am lucky enough to have a decent job that I can do Steemit as something on the side. If I had to rely on this for my sole source of income, I would be screwed. As nice as that would be, I think it is a long way off though. Point 3 is a really good one. I always cringe a little when someone says they are powering down to pay this bill or that one.
I will say that it is a much needed video. Maybe not the most fun video as you say but probably one of the more important ones.
Thanks!
I can tell you are giving advise based on your experience. Even though I don’t rely on steemit when it comes to income, I agree with all your points. Especially the one I copied above. I can see many steemiens struggling now, powering down, mostly those who have been living or have been paying their bills thanks to steemit. I guess they were not ready for that. It’s like a stress test for all of us, this bear market. Only the strongest can survive. I don’t believe the pain is over just yet.
Right now STEEM is a learning process for me, I´m going to study 2 more years (Master degree) and prepare myself for the job market. So STEEM is an investment that if it succeed I'll, at least, pay my next 2 years, if it doesn't succeed I'm already preparing my future improving my knowledge and qualifications.
Obviously everybody dreams with a job that allows us to be free, and working hard like you made it possible for you!
Don't powerdown EVER, that's the best advice, if you have to do it to be able to live from STEEM you shouldn't be living of it. Your safe amount on FIAT is the right move, in 2 years you will be able to find a job in case of failure of STEEM.
Another great post. Thank you my friend. I am thinking about when to make the move to living off the blockchain and you gave me some stuff to ponder.
I know it is not easy and I agree....it is not wise to power down to live off (unless it is unavoidable). SP is precious; like oxygen. Need to protect it.
Excellent video and very nice information too, i agree with your thoughts and depending solo on steem to earn livings is not a wise decision at all cause the earning here is not fixed and not guaranteed, the prices fluctuate every day and it's hard for everyone to generate equal amount of income every day, so we all need to have second authentic source of income ready all the time. thanks for sharing your nice thoughts with us and wish you all the best in all of your future endeavors! Stay blessed
Pretty good tips, i've made some calculations myself and the sweet spots for me to live off Steem @ current prices would be around 8 to 10k SP! Its that low because i don't live in a really expensive country but i'm moving to a better country soon and those numbers are for that country... Those calculations where made considering Steem price to be @ 1.5$ so a little more if we maintain current prices or a little less if we go beyong 1.5$!
Can I ask where you live or going to live? I checked your profile and Second star to the right is not helping :)
What do you mean second star to the right doesn't help!? lol
I'm currently in Venezuela and will be leaving for Peru somewhere between October and November.
I need to earn around 8$ a day to live a decent life in Peru off the blockchain but i'm pretty sure that won't be happening anytime soon and i would probably end up working anyways because i'm going hard at Javascript right now because i want to help out with Steem coding.
and Straight on 'til morning!
I think it could well be possible in the future. But right now it's a little to early days indeed.
I agree maybe 2 years away or even 1 year if i manage to hit a few gold mines here and there or if Steem goes to 100$ :^) We can dream lol
We only need a slight boost to fuel so much growth. Even a tiny 5x rise would create massive difference for people.
Great advice. I was living off STEEM for 6 months until the prices reached a low that we haven't seen in a long time. Currently looking for a job due to that but it has been a great lesson and experience while it lasted :)
Really believe in guidelines #1 and #2
Why don't you create a digital job? :D
What did you have in mind? :)
I have tried doing online businesses and some other things but I feel like it's just not me. Living off STEEM for those 6 months was the dream though :)