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!
Congratulations @papa-pepper!
Your post was mentioned in my hit parade in the following categories:
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.
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.
You Right @papa-pepper
wow this exactly what I do, thank you for sharing
Glad to hear it! Every little bit helps!
50/50 it is! Thank you sir
Glad to hear it!
True observation
Thank you!
Interesting. Resteemed ;)
I really want to understand this, and I hope I can get some help even though this post is about a month old.
Would using the internal market be just as good as using an external market?
I checked the internal market. Should I leave the default price that comes up as is, or adjust it?
Currently I have $2.597 SBD, and Coin Market Cap is showing prices right now of $1.26 for SBD, and $1.86 for Steem.
If I plug 2.597 into the Total field in the internal market's Buy Steem section, it shows that I should get 1.708 Steem at a price of 1.520811.
Is this the way to do it? Can somebody help me understand how all this works, and why the numbers are what they are?
Also, 1 Steem is worth 1 SP, correct?
Thanks!
Thanks for sharing! Much appreciated.
yes that's right, should use 50/50, I was emptied. :(
50/50
I believe you are correct! I noticed this too. Good advice in my opinion!
Good Evening papa-pepper nice post..greets from germany..you are welcome to visit my post friend
huh
I've been thinking about that
If you take %100 of your author rewards in SteemPower
wouldn't that be automagically the same thing as doing what you said?
then power down a little bit later
(take some..... 1/13th I think is what you get in weekly payments)
when you need some money?
then turn off the power down..
and leave the rest of it
in the SteemBank
...growing.
Not quite, because of the high price of SBD right now. Check the math above, you get extra $$$ because the system treats SBD as if it is worth $1 each regardless of the price. That extra $$$ is currently just over double, so that is twice as much, which can then be used to purchase STEEM and power it up.
So @papa-pepper how do I change it?? I am so low on steam its crazy and can't work out how to get try voting power back!!! :\
If I'm reading @papa-pepper right (and I'm still new, so there's a good chance I'm not), when posting something you should leave the post set at 50/50% (Bottom right of the post box) rather than changing it to 100% to get more SP.
I honestly wondered what that was! I couldn't work out why I could post last night, turns out I was out of steem and auto upvoted my post..... I am brand new here to and am just trying to get the hang on the process! <3
Yes.
When creating an article, simply pick 50/50 instead of 100% Powerup. For articles that are published already, you cannot change your payout structure.
Thank you! <3 @triverse
Well I have some changes to make, let me get to it
You can go back and edit payout %?
You can go back and edit payout settings?
OK thank you
You lost me as soon as math was involved, lol! Damn, i wish i had your problem. I'm just over here counting my sheckles in pennies. Hahaha. But thanks for the heads up. I JUST realized, about 2 days ago, that I shouldn't have been converting my SBD by transferring it to steem power, but rather exchanging it on the market for better rates. I'm still new to this platform and trying to learn as much as I can, as FAST as i can!
Whoa, my upvote gave you like $9.50. How'd that happen?
Believe it or not, he probably already had much of that before you actually clicked the upvote button, at which point the total refreshed for you and showed you the higher amount. Happens all the time with popular posters like @papa-pepper. People flock to his posts.
That makes more sense! Haha. Had me do a doubletake for a second. I know i dont have THAT much voting power!
They really do, don't they @winstonwolfe?
thank you for heads up...never realized this
1/3rds anyone?
I fully agree with you and believe that your calculation is perfect
Thank you. I thought so, but I leave room for error. No one is perfect!
Legit
The numbers say you're right and thank you for explaining a better strategy.
I am glad to hear it! Hopefully it helps some people.
Really very informative, I will apply what you have said @papa-papper
At the moment, you're absolutely right!
I have been watching this, as well... and it seems that whenever the markets are "hot" on high volume the SBD to dollar peg goes off kilter. When trading volume drops and the markets are quiet (like they were earlier this week) SBD seems to drop back towards parity with dollars.
Earlier this week when things were "quiet" SBD dropped to about $1.30... last time we had a price spike in Steem, it ran up to $2.12; at the moment we have high volume and strong Steem pricing... and SBD is back near $2.00.
RESPECT (fist bump) @papa-pepper
You have been PROMOTED FREE for using the "help" TAG (hashtag)
https://steemit.com/promoted/help
Cool, thanks. I thought that this would help people not miss out on potential rewards. Every little bit helps!
I hear you @papa-pepper
I have my own set of rules...
33% STEEM
33% SP
33% SBD
I prefer balanced instead of power or profits. That way I sleep easier. :)
Much RESPECT (fist bump) for sharing and caring!
Enjoy your weekend brother...
You too! STEEM ON!
Dang, didn't realize that. I've been 100% powered up the last week or so
Good thing I said something!
I have wondered too, I did a similar post. Thanks for sharing your thoughts on this.
Glad to hear it. I missed yours, but it is good to know that the word is getting out there.
Newbie always open to advice. Not sure which way to go. Just went 100% thinking it would get me the most steem power in the long run.
Same thoughts here. Arghhh... got a lot to learn in here. 😅😅
At least you are learning now!
It's right that I noticed those last days that it's very advantageous to trade SBD with STEEM in the internal market ! I power up directly after all my steems ! Thank you mister Pepper !
interesting.
I'll keep that in mind, thanks for the info @papa-pepper !
Still on my first week but will surely keep this in mind .. in case!
I did realise this, but sadly too late... I had 2 power-up posts that are doing fairly well.
You're still getting Steem Power for them, so you're doing alright, it just happens to be a little less than it could have been.
At this point, I do not mind. I do not mind the POWER!!
cool definitely taking this into consideration. Hope it works out for all the best! Thank you so much for sharing ^_^
Thanks for the info!
From what I read 1 steam power is traded in for 1 steem so its not $1 but perhaps I misunderstood as I was reading for the details?
If that was true, then this transaction would have been impossible:
Sounds like you are correct. Thank you. I just tried the 100% option on my last post. Died after 27 cents and twenty minutes or so. I'll go back to 50/50 for that reason alone. Haha
Sry for beginner question :-) but where is the option to do 100% or 50/50%?
When you are about to post a blog the option should be on the right. But you can also select none and upvote it later if you want. I'm a newbie too. :-)
Ahh I see, you can set it when you are posting not in the wallet, thanks
Thank you 😄
Brilliant !!!
=]
a friend of mine noticed my rewards actually
our wallets are public
and I also asked a friend here how come that was o
and found out I was calculating it wrong
anyhow .. 100% power up or not I'd say do whatever suits you
if I were a minnow specially a beginner here I'd do the 100% power up
To get paid in extra SBD is way better right now, whether they are being powered up, sold, or just held.
Interesting. Too much to track too little time to do it.
Thank you for pointing this out @papa-pepper
I have tried all kinds of diffrent blogs and have only earned a few dollars at most. What am I doing wrong? Ps following you