Hmmmm...this is where I get confused.
Is there going to be a sharp increase in the number of SBD on the market, or is it always a gradual increase?
From my [very limited] experience, SBD performs better than STEEM as far as price goes, and I believe SBD has traded much higher than STEEM in the not-too-distant past. It's also outperformed STEEM in the bounce back from the recent dip.
So, when I had the opportunity to invest some money into STEEM, I split my investment between SP (which I know is vital to growing on Steemit) and SBD.
I did this with the intention of using my SBD to use upvote bots, in the hope of making back my investment (per transaction), but gaining exposure and attracting followers. Now that I've looked into upvote bots a little closer, I think it's hard to even break even, in real terms.
So what do I do? I think SBD will rise faster than STEEM, which means I could hang on until there's a bigger gap and get more SP for my SBD, but the longer I wait, the longer I don't have the SP. Aaaaarggghhhh!
Basically when you get a post payout, more SBD is created. The mechanism to destroy SBD ("Convert to Steem" in your wallet) was removed while the SBD value was so high.
I believe Steem has a fixed inflation rate in terms of how much is created each day, but SBD is in hyperinflation now... so tons of it is being created on a daily basis, and none of it being destroyed. If you think about basic supply and demand, you can see the problem.
I came to the same conclusion. I think the potential exposure is rather minimal, and you run the risk of people flagging you for using bots. All up, not a fun time.
I've found I get way better traction, and more engaged followers, just by actually engaging with people in a meaningful way.
Thanks for the reply, and the explanation re: STEEM/SBD inflation. And I know the platform was designed with SBD being pegged at USD$1, and @ned has said he's perplexed about the rising value of SBD...but, it does keep outperforming STEEM.
I can't see SBD ever going back down to $1 though.
I am trying to engage with other users - this is a social platform after all, and not just using throw-away "great post" comments.
But, the reality is, as a new user, I could spend 100 hours creating the best post ever made, and it would never even be seen. At least by using upvote bots, it can get into the trending posts and get an audience - from there, the quality of the post defines its/my success.
I think this chart from @sevenseal's post explains why it'll go back to $1
The supply of coin has almost tripled in the last ~6 weeks. Eventually the supply will out-strip the demand.. as long as the price is above $1, more coin will be created until it balances out. So even if there's no massive sell off, eventually the price will correct downwards.
thanks for sharing this