Are you looking to grow your account? Maybe even to power up some more Steem to grow your vote value? Then I hope you have already seen that SBD is once again trading above Steem at a ratio of about 1.1 Steem / SBD.
To be precise the price of the two tokens at the very moment of this post are $3.96 / Steem and $4.55 / SBD respectively according to the values shown on busy.org:
That being said I´m definitely taking the chance to convert as many SBD as possible to Steem in order to be able to grow my account towards the Dolphin level and you should do the same as SBD will sooner or later fall back on a value of $1 USD. That´s no speculation but the truth as it´s first meant to be traded at that value and secondly the massive increase in supply will sooner rather than later bring down the price anyways.
There´s at least in my opinion no reason to hold on to your SBD at those high levels in case you don´t use them for Voting Bots or payments for other services. The risk of falling prices is just ways higher than the chance on higher ones.
Nonetheless I´m very interested in your opinions on this topic. Are you converting your SBD to Steem, spending them on Voting Bots or doing sth. else with them? Tell me about it in the comments!
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I'm waiting for it to be over $10.00 again, which will probably be during our next bull-run!
For those wondering why SBD will fall back to 1USD, the basic gist is this:
Let us always be in the foreground 👍
Thankz alot....really helpful post
Very. I just made some money😎👍🥇
I have liked and resteemed to my 520+ followers.
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
mehn exactly what i do with my sbd ,convert to steem to power up but also sometimes its been used to pay bills . but sbd falling to 1usd will be disastrous and have not really gotten your reason for sbd to fall. it as already fall to 2usd before ,so i guess next correction would not pass the 2usd
The short version is that the system is designed for SBD to sit at $1USD, and so at the moment tons and tons of SBD is being created to adjust for the price. Ultimately supply will out-strip demand and the price will come down.
I'll take your advice. That's what I'm trying to do now :)
Make sure you use the internal market or you lose money on every sbd/steem!
The "Convert to Steem" option in your wallet is gone now, btw. I gave the same advice to a newbie the other day and they were super confused :D
actually I still do not understand the issues you explain about our attitude towards sbd and change it, I am still a beginner here, but this article can be my first reference in stepping in steemit, I always waiting for your posting about other related explanation sbd, thank you
Great post. I m trying to but looks like I ll have to pay double commission. Poloniex Steem wallets still not working. Only thing I can figure out to do next is sell Steem to Bitcoin and then use Blocktrades here to transfer. I hope whatever we need to do here on Steemit gets done. I want to build my profile here and I need to transfer some Steem to do so.
I had been waiting for weeks for sbd to be higher than steem, luckily yesterday I finally did the exchange at 0.89.
I did not feel comfortable doing the exchange with steem at a higher price.
Let's hope sbd remain higher!
Cheers.
You got a 100.00% upvote from @edensgarden courtesy of @steembusiness!