DON'T 100% POWER-UP - I THINK YOU CAN MAKE MORE STEEM POWER BY NOT POWERING UP 100%
If I am right about this, you may be missing out big time!
A few hours ago I received this payout:
227.359 SBD, and 97.163 STEEM POWER for papa-pepper/the-gift-that-hopefully-keeps-on-giving
I'm thinking that although steemit takes the fluctuating price of STEEM into consideration when paying out STEEM and STEEM POWER, it may be a different issue when SBD is involved. As our wallets say, SBDs are "Tokens worth about $1.00 of STEEM." Last I knew, they are pegged to be worth about $1 USD.
At the moment, STEEM is worth about $2.63 USD and SBD is worth about $2.03. I do not think that this would cause the payout of STEEM POWER for my post to be 2.3X less than the SBD payout (97.163 SP vs. 227.359 SBD). The total payout for the post was $513.67 of which $454.72 was my portion as the author.
I just took that 227.359 SBD and went to the market in my wallet, where I purchased 174.74 STEEM for it and powered it up.
Now, that post got me a total of 271.903 STEEM POWER. If 50% of the post payout was worth 97.163 SP, how could the other 50% be worth 174.74 SP?
If my calculations are correct, you can get a lot more Steem Power by not using the 100% Power Up option.
Does anyone know if I have reasoned through this accurately?
Until next time…
Don’t waste your time online, invest it with steemit.com
As long as an SBD is trading for more than a dollar, you should take the 50/50 payout and then trade the SBD on Bittrex or wherever, then you get $2 for every SBD as opposed to 1. You then buy more Steem with proceeds from the SBD sale.
Which should add more sell pressure and help lower it back to peg levels but people just keep buying the damn thing for more than a dollar. I suspect they have no clue what they are buying and are just speculating on cryptos in general and playing the charts.
I had that exact same thought about people not knowing what they were actually buying. It had occurred to me while I was reading the whitepages SBD section that I remembered seeing that symbol trading higher when I first started paying attention to crypto.
Agreed! Feels good to be a gangster!
This is actually really smart tactical economical genius
Well, I didn't like the 50/50 option at first until I realised that the "convert to Steem" button takes a 45 premium... Which sucks...
As long as SBD is above the $1 mark, you will lose money when using the Convert to Steem button. Back when it was less than a $1 converting to Steem was a profitable trade. Now the profitable trade is to sell your SBD on external markets. I use Bittrex.
Thanks, but why is it trading above 1 USD? This just makes no sense to me...
There are mechanisms that are supposed to keep it near $1. Earlier you would have gotten 10% on a Steem Dollar if you held it. That kept the demand up. And for a long time, payouts were in Steem and Steem Power. Now payouts are in Steem Dollars in hopes that there will be selling pressure on them. But it seems speculators are doing a lot of buying. But in the meantime, if people are doing the math, SBD can be very profitable if you know which direction to trade them.
And currently RIGHT NOW, the most profitable thing to do is to sell them on an outside exchange.
When the price goes back down, the strategy will change.
I'd suggest to do a post on this, but, I don't know, it's nice to have the edge on the market, too ;)
supported!
True
Right, SBD has been rifing high for a while now. I just don't 100% power up, so I didn't think of this until now, figured I should share.
Good thing we have observant steemians. I'd have missed it otherwise.
Shock! Amazing finding. I just told by other people, they told me to use 100% steem power to each post as it is better. And I followed them. I was so so regret on it. Thank for your action and proof, it is very useful for a newbie like me!
Live and learn, and apply what you learn.
Nobody wants to vote up 100% powered up posts. That's why I believe 70/30 proposal is the best option to be added on Steemit in the future. It's a fair contribution to the author and the curators.
If the author chooses 100% power up, it is only for their portion. The curators still get a cut.
Can you explain why nobody wants this? I'm new to this and still learning.
I do not believe that statement was accurate.
u sire, u a genius
Thanks all, I know what I'll be doing now.
Glad to hear it @carface!
You right! As long as SBD > USD, it is profitable to buy Steem for SBD, cos SBD generated as if they worth 1$!
Absolutely!
Brilliant... Great strategy. I've been wanting to get my SP up to 5000 and it always seems that I get more SBD than SP for posts. So, if I convert my SBD, it'll be quicker! AND (I hope you don't get sick of hearing it) Thank you so much for your help!!!
Glad to be a help. You're welcome @richq11.
This is actually why I stopped 100% power up posting. The SBD price seems to be 50% of the payout value and the power up price is based off the USD price of steem. When the SBD is worth more than the peg you are getting more value out of SBD than steem for the time being. When it's worth less it works the other way. It's a counter inflationary measure from my understanding.
I never did power up much, so I hadn't thought about it until I was talking to @bluerthangreen.
I stopped powering up 100% when I realized SBD was no longer pegged to the Dollar, for the same reasons you gave.
Good idea! You are @wiser!
Good point! Thanks for this!
I'm interested to see someone more knowledgable than me answer this.
I've been taking every 0.089 & 0.045 SBD payment and converting it to STEEM with the intention of gettin me some mo power up.
Always go to the market with your SBD it will give you more!
At the risk of sounding like a complete dumb-ass, what exactly do you mean by "go to the market with your SBD"?
One such market is the Internal Market:
https://steemit.com/market
Click on Steem Back Dollars in your wallet and in the drop down menu one of the choices is market. It is an exchange with people selling their steem for steem dollars a little cheaper. But, this is only with steem dollars
So the roughly $12.00 SD I've put into conversion to Steem over the last few days would have been better put to use just going to the market & buying SP?
Yes
OK, live and learn.
It's not like I flushed it down the toilet.
I can still use the Steem once it's converted (after 3.5 days) to buy SP, I just won't get it at as good of an exchange as if I'd gone straight to the "Market" tab?
Reminds me of when I bought silver at $29/oz.
Now you know! That is all that matters! Good Luck to you!
You can sell your SBD for steem there is a market option in your wallet that tells you what the price they are selling at there and that's also where you sell and buy between the two. I only found it recently so don't worry about it.
That works! - but it takes longer and the market is better.