How much money have I made from buying, selling, and promoting the cryptocurrency Steem? If you want answers to that, will you please watch this video below and leave a like if you enjoy any part of it because you will feel good knowing you are helping other people find it?
I’m as interested to know these answers as you are. I don’t know how much money I’ve made because while I’ve worked on all the individual parts of this, I’ve never even once so far looked at the entire big picture and added all the numbers up.
STEEM How Much Money Have I Made on My Biggest Cryptocurrency Investment?
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I’m grateful for the adventure, for all the earnings on Steem. At the same time, I felt an attraction to gaming. I felt the pull away from Steem.
I’m no longer actively promoting or doing anything on Steem besides selling the Steem I earned, selling most of the Steem I bought, and posting to my blog on Steem with the intention to get people reading on Steem over onto my website, Facebook, Youtube, and Twitch. That’s where we are at with this today after seeing a year of the ups and downs.
I am grateful for all of these earnings I’m about to present.
At the same time, I’ve thought a lot about how I earned it. I’ve earned this money on Steem because I’ve sold Steem to other people I don’t know, who have bought it often at a price higher than I bought it.
I’m seeing for me personally, I’m being attracted to do more with very personal investing where I actually know and have accountability with a person.
Therefore, let’s get into how much money I have actually made on Steem.
Now, this is complicated for even me to understand. I will do my best to present it in simple terms. There are two basic ways I’ve earned money with Steem.
First is buying it, and then selling it.
In the USA, this is called “capital gains,” where you buy something at one price, and then you sell it for a different price, and the money you make is called “capital gains” doing that, the money you lose is called “capital losses.”
I’ve bought a total of 46,000 plus 22,000, because how long you hold it has an impact on the tax you pay.
Long story short, I bought a total of 68,500 Steem.
The average price was around a dollar or so.
Yes, it is lower than when I bought it a year ago.
Of course, I’ve sold that. The total price I paid in Bitcoin to US dollars, the total price I paid for 68,000 Steem, I actually paid less than a dollar on it. I didn’t count. I actually paid less than a dollar for it because when I bought the Bitcoin for it, it was lower.
I paid out of my bank account about $48,000 or so. I put from my savings and sold all my other investments to buy into this. I put in $48,000 in 2017, and for capital gains, I’ve sold so far for 61,000 plus 26,000 at different rates based on how long I held it.
I bought about 47,000 I bought in, and I sold for about 26,000 plus 61,000.
So we will put this in the calculator to get the net profit assessed at today’s current market value.
We will put this, and I’m not going to actually count this Steem because I’m still holding it, but I have that much more to sell.
So we are just going to put all of it in there and see what the number comes out to. We need to do the profit first. What I sold it for, we are going to start with that, 61,536.35 plus 26,873.23.
All right, that’s 88,000 total sold price.
Now what we need to do is minus what I paid for it.
Minus is 24,643.
I need to stop using decimal places to it. I’m just going to truncate that.
That, and then we need to minus one more, minus 23,486.
That’s a $40,000 net gain on what I bought versus what I sold.
A great deal, considering I put in 47,000, sold at a profit of 40,000. That’s a great deal for most any investment.
That’s just what I bought versus what I sold.
Now, what we need to do is look at all the rest I’ve sold as straight earnings. What I bought versus what I’ve sold is capital gains.
The rest of this is what I’ve earned.
Essentially, you can look at it as mining. I’ve earned this by being a witness and author, curator, my voting bar. All of these earnings combined into the total earnings.
For this and my QuickBooks for all the time, we have got $147,072.
So we are going to put that in.
There are some expenses related to it, but we are going to add this in 147,000, that’s a total of 187,000 when you include all of the earnings. These earnings are a bunch of different earnings from author rewards to witness.
These are all the earnings just lumped into QuickBooks combined.
Wow, this number is coming out higher than I thought it’d be, $187,000.
Now, if you do the tax on this, there is a lot of tax on this. The IRS is going to be earning, and already has earned a lot. The IRS will be getting about $50,000 or so of these earnings.
The US Government will be earning $50,000 plus on the Steem that I earned. That’s a nice little system they have gotten set up, haven’t they?
This includes everything, all the stuff thrown in there.
Now, there is another big thing I need to subtract, though.
The amount I just showed includes $65,000 I got that I sold specifically for ads.
Now, this number is going to take a big drop.
We minus $65,408.
Now, down to $121,000 after subtracting.
That’s money that I cashed out Steem that I earned in exchange for paying for ads on Facebook and Google. So, I spent $65,000 advertising Steem on Facebook and Youtube. That’s a straight-up expense.
In other words, I sold Steem, and then used the money I sold the Steem to pay Facebook and Google for the ad budget.
Now, the remaining things we add in are the current value of my Steem account.
I can’t actually sell my Steem right now in this account.
This is my main Jerry Banfield account with one of the largest numbers of followers on Steem, and all I do on my blog now is trying to get people off Steem.
Isn’t that beautiful?
Now, this is all the Steem Power I actually have. These other amounts are voting bots in and out. Those go in and out every day. This is my actual part of the Steem, technically I power down curation rewards every week.
What we can do, for simplicity we are just going to put this value in right here. This is the estimated account value based on the three days or so average of the Steem price.
Now, this can go up and down drastically, and it takes me 13 weeks to actually be able to sell all of that. If the Steem price goes to zero, this is zero. If the Steem price goes way up, it may go way up.
This is the true number that I’ve cashed out in total. I’ve actually got all that money out of Steem, out of Bitcoin, all of that is in US dollars in my bank account.
Well, technically I’ve already paid the IRS tens of thousands of dollars of tax on that amount as well.
This is the net profit that I’ve actually cashed out, which I’m very grateful for, this has built me a shed that I’m doing my videos in, which cost about ten thousand dollars.
It has helped me upgrade my setup, and get a new camera. This paid the down payment on my house, this paid off the car I bought before. This has paid tons of student loan interest. This has paid my bills basically for 10 months or for a year or so. I’m very grateful for that.
“What can I say except you’re welcome?”
Is that what you are thinking?
Now, that is the kind of hard earnings.
All of these other earnings, and this is subject to anything with cryptocurrencies, these other earnings could disappear completely. I could get my account stolen and never signed into them again. These could go up 10 times. The Steem price could suddenly blow up 10X and this could be suddenly worth $500,000 instead of $49,000.
Therefore, $121,944 is the real number that I’ve actually gotten at the bank. Now, what we will do is combine this with the theoretical market value of what I’ve got today.
This technically includes some of which that could be sold at capital gains, but for simplicity, we are just going to put it all together.
Now, what we are going to do is add $49,000.
All right, $171,424 and that’s theoretically based on what my account is worth, assuming I powered it down and was able to sell all of it at today’s market rate.
Now, I have one more account that’s also got some Steem in it.
I’ve got another account that has $7,800 worth of Steem in it, and I could sell almost all of it immediately.
This is kind of my hot sell account. I’m keeping this, and if there is a price pump, I got a notification. If it goes up to $2, I’m unloading all of this immediately.
I’m sure there is probably 500,000 other Steem set to unload immediately if the price goes up that much as well.
Therefore, I’ve got this account to also consider. This account is mostly liquid, I can sell all of this right away.
We are going to put that in, plus 7,822.
There is the combination of all the earnings I’ve actually got, which is $179,246, including about $120,000, plus all the earnings I theoretically could cash out at today’s market rate.
All of that is subject to change.
Therefore, two thirds of this is set in stone already in the accounting, and then a third of this is up for debate. It could disappear and go to zero, it could go up 10 to 20 times, who knows?
I’ve sold most of my Steem already, the two thirds of it, because when I’ve got all these student loan debts and I’ve got a family to feed each week, it’s insane to be holding that much money all in a cryptocurrency that could easily disappear.
I’m holding most of the rest of this in my voting bot because the voting bot pays out a little bit every day.
The voting bot is paying me out and anyone that buys Steem can set this up. The voting bot is paying out about $20 a day in Steem for me to just hold this basically.
If it paid out $20 a day the rest of the year, I guess that would be like $7,000 or something. That’s pretty sweet, that’s true passive income. I don’t need to do anything except just cash the income out.
What I learned with my Dash, if I could have sold all of my Steem at once, I would have dumped all of my Steem at $2. I started selling large amounts of Steem at $2. If I could dump all my Steem at once, I would.
That said, I also learned a lesson.
I dumped all of my Dash when Dash was $87. Then, Dash went up to $1,400, half of that assisted by the promotion I did for Dash.
Therefore, I’ve decided not to unload all of my Steem at once, lest my own promotional efforts from things I did in the past, like videos, blog posts, et cetera, lest my own promotional efforts and the innovations from people still trying to make something out of Steem, lest those actually add up to something good and the price ever goes up in the future.
I’m grateful for all of these earnings, but at the same time, from an ethical standpoint I’ve been thinking, “Is this a good way to earn money?”
If you just calculate everything I’m holding today, $180,000 for a year and a few months of service almost every day devoting my primary attention to Steem, that looks like a good return.
That said, what I’m wondering now is how much money I’ve lost doing Steem for the things I did not do.
For example, I didn’t hardly put any new courses on my website on the University of Jerry Banfield for a year because of doing Steem.
If I had just put more courses and filmed more courses the whole time — unless Steem goes up 10x and I’m still holding 50,000 of it and I unload it — I bet overall, if I just stuck to filming video courses, YouTube videos and interacting better with my audience, I would have actually earned more not even doing Steem in the first place, just holding some of my Bitcoin from the Dash Masternode.
The biggest consideration is, how did I make this money?
Other people bought hundreds of thousands of dollars of Steem that I either earned completely or often paid less for, and then I sold it to them.
I tell you what, I’m not a big fan of being on the receiving end of that because I’m going to sell my Steem now, and I bought it for three times in Bitcoin what it is today. I bought it for more US dollars. I bought 30,000 or 40,000 of it for Steem, for more US dollars than it is today.
I’m not a big fan of being on the receiving end of paying more for something, and then it goes down.
I’ve been thinking about these things and I don’t want to promote something either where there is no accountability in it. With the Steem I’ve got, I can do a whole lot of things with it. I’ve got a voting bot running right now that just gives me passive income every day. It doesn’t matter whether it’s ethical or not, because I can do it. As long as I’m okay with it, then it’s hard for anyone to stop me.
There is a whole lot of earning like that on Steem. I’ve seen a lot of the ugly side of cryptocurrencies earning this money myself because in making all this money with Steem, I got in with the other people who are making the big money on Steem too.
I see that just like almost everything else, you have the 1% of people, actually a tenth of a percent of people on Steem including me, earning a fortune off of Steem while the majority make almost nothing, or actually pay out the big earners. This seems to be unanimous across all the cryptocurrencies I’ve seen.
In every one, you have got a small group of people who earn a fortune, and then almost everyone else is desperately grabbing trying to make a little bit of money, trying to promote it and get a little bit, and relative to the 1% making almost nothing.
I think the solution of this is a very personalized investing approach and accountability. I can do whatever I want with the Steem. While that sounds good on the surface, what happens when I want to do bad things with it?
What happens when I want to steal someone else’s Steem?
If someone steals, it would be very easy to steal my Steem, or anyone else’s Steem and completely get away with it. That’s a big risk, especially holding as much as I’ve still got today.
That was a factor to cash out.
I’ve seen where every time the price pumps on Steem what happens is the 1% who have a lot of Steem just unload it like crazy and drive the price back down. Therefore, everyone who gets excited and buys in, then the top 1% earning a bunch just dump and knock the price back down to where it is now.
Basically, the ordinary person buying in and hoping to make some money pays out, often, people who have just earned their Steem for free, who didn’t even have to buy it.
This is not unique to Steem, this is almost every cryptocurrency I’ve seen.
Guess who makes the most money in Bitcoin?
The people who have all the mining set up, the people who have been in for a long time, the people who earned the Bitcoin when it hardly was anything and have just held on to it. Almost all these cryptocurrencies, there is no accountability. It’s a free from.
What I see is that if we want a world without money problems, either we don’t need to use money and have money anymore, or we need to be accountable on a personal level with our money.
Just having no accountability, no rules, total anarchy, it’s not fun when you are on the receiving end of a scam.
When you get ripped off, it’s no fun anymore.
When you buy something and the price plummets, several of my business partners were all hyped up from my hype and bought Steem from me.
I sold it to them at $3 and now it’s 92 cents.
I don’t feel good about that.
That’s not a good thing for a relationship for anyone.
I’m grateful for these earnings and it’s got me thinking a lot about you, about everyone else involved, about what’s good for all of us on earth.
I’ve made $180,000.
When I die I don’t get to take any of that with me.
What about you?
What about the people who have helped me make this money?
I don’t even know who has helped me make this money. I don’t even know who to thank for all this money. I can thank lots of upvoters, the people who voted for me for witness, and yet there is a lot of power and control that’s come along with making this money.
I could have made a whole lot more than this if I had just given in and said, “Sure I’ll just be one of the top tenth of a percent. I’ll earn a fortune on Steem, I’ll keep my mouth shut about how most of the people on it are getting exploited, and I’ll just take my income and keep cashing in and out every day.”
I did that for quite a while and then I finally spoke up about the things I felt were wrong on Steem.
You got all these people trying so hard to make almost nothing, you have got people who never even bought any Steem, who just had it given to them going around taking money away on some crusade.
Then, those people are acting holier than thou and they are sending massive transactions over selling hundreds of thousands of dollars of Steem every time the price pumps based on everyone else’s work that they contributed almost nothing to.
Then, it doesn’t even impact their ability to continue holding power and influence on Steem.
It’s insane. It’s hell. It is hell.
I’m grateful today I’ve sold most of my Steem. I’m still holding some just in case. I think Steem’s got a good shot of just going totally down the drain.
If you look, most of the altcoins that have been successful have gone up in Bitcoin value over time. Even since I bought Steem, it’s lost like 60% of its value in Bitcoin since I bought in a year ago. A lot of the other cryptocurrencies have done the opposite.
Steem was way higher in Bitcoin at some point. Every time the price pumps you get the 1% just cash out so hard it goes right back down.
I don’t have much faith in the future of Steem actually. Whenever the price does go up some more, or maybe if I get a little lower in my checking account, I will just sell some more Steem at whatever the price is today.
This has been uncomfortable for me to present because there has been a lot of learning, a lot of pain, a lot of challenges in this. You might think it’s success, “Well, Jerry, you’ve earned $180,000 minus at least $30,000 the IRS is taking out of this for their cut.”
Technically I haven’t gotten paid the $60,000 yet from the amounts I’m just holding.
While you might look at this and say, “Well, this is success. You’ve earned all this money,” in a lot of ways I look at this as failure that I could have done better things with my time over the last year, that I contributed to making an environment of fear and oppression on Steem.
I contributed to promoting something that wasn’t good to buy into. I’ve looked at some of the guys that promoted things that completely collapsed and I see a very uncomfortably small amount of difference between me and them.
I see, what if they just got as excited and as enthusiastic as I was about Steem?
What if they just honestly thought this was a great thing, they were happy they were making money and shared it, like I did with Steem only to wind up here at 92 cents?
Despite how all the great things that I’m for cryptocurrencies over the last year and a half, despite all the innovation, despite all the people that contributed to Steem, the price is lower and the main people who have made money, almost all the money made on Steem was made by the people at the top.
The very top holders of Steem collectively sold tens, if not twenty or fifty million dollars’ worth of Steem when the price went up. Most of that Steem that was sold, they did not buy, they were given that Steem.
This is why I’m not into cryptocurrencies anymore.
Here’s an interesting thing.
These ideas in our minds that we think, “We’re going to make this money, it’s going to make us happy,” it doesn’t make me happy to look at how much money I’ve made on Steem and to think about how I made it.
Now, when I sell video courses, when I put videos up that help people and are useful, that I feel good about. I feel good someone has watched a video of mine on YouTube and got some ad revenue.
I’ve realized that’s not great either, that I’m making money off of thousands of people showing me and showing ads from advertisers for products that I don’t want to watch ads for those.
The whole moneymaking system, when we look at it a little bit more, it’s like, “Wow, why do we even need this?”
I’ve gone on my soapbox here.
I hope sharing some of these ideas is helpful.
I am grateful for a beautiful comfortable life with all this money from Steem. I intend to from here just keep selling. Any time the price goes up a bit, I will sell. Maybe even if the price stays the same just keep selling more, so I can get the actual number I have in the bank to match the number I’ve given you here today.
I love you.
You are awesome, I appreciate you reading this.
If you have enjoyed the video at the top of this post, if you appreciate the honesty here, will you please leave a like on it because you will feel good helping other people find it?
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I was going to say I will see you on Steem, but I won’t.
I will see you on my website.
I will see you on my University of Jerry Banfield.
I will see you on my blog.
I will see you in my books.
I won’t see you on Steem anymore.
Edits from video transcript by Michel Gerard at www.michelgerardonline.com.