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.
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.
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!
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.
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
It is an extremely big issue for a lot of us. You were smart to build that big of of a buffer and have a couple of years you could live off of. That would be ideal but some of us are faced with staying in this space and getting a strong hold and not checking out while others get into better positions to live a life of absolute freedom.
It is a tough thing because suddenly with these swings we can see $50,000 just blow away in the wind and then suddenly one week we feel good and then the next week we are feeling like they payout situation and what everything is worth is so far in the dumps that we are even going to get pressed out.
I agree in general with everything you have said and it seems like you have really set yourself up good. My situation is more of one where I almost have my primary residence paid off so there is light at the end of the tunnel so it is a race of paying it off and not having the crypto become worthless or have to sell out of too much of it.
This kind of advice more down to earth from someone who's actually doing it is really needed. Too many think they struck gold and act as such.