Yesterday I wrote that I was trying to determine what to do about these SBDs and what is the best approach.
To be honest, I do not know what the answer is.
There are a lot of variables I pondered as to what the best approach is. Some lead me to believe it is best to hold onto SBDs while others make me lean towards powering up.
I just had a discussion about this with @pandorasbox. There were some valid points brought up, one being that one never goes wrong taking a profit. Getting 6 STEEM for each SBD should be considered a profit...one people take advantage of.
That said, for those who follow @haejin, I think he is the best analyst on this site. He is very good at his technical analysis yet he is not perfect. He got me really excited with his call of $31.45 on SBD. That is 5 times where the present price is. Of course, any gains are potentially offset by an increase in the price of STEEM.
Here is his analysis on SBD:
https://steemit.com/bitcoin/@haejin/steem-dollar-sbd-target-usd31-45
@cryptoctopus wrote an excellent article about greed earlier today. It focused upon the debate to hodl SBD or power up. In short, he says it is a decision to earn a stream of income versus speculation on a gain that is possible ,yet "ridiculous". For him, the decision is easy. The gain in SBD is a gift, a means to power up quicker to enhance his power on here.
Here is his article:
https://steemit.com/greed/@cryptoctopus/accumulate-steempower-or-sell-sbd-at-the-top
There is validity to that outlook. This also brings up a basic question:
How many of us came to this blockchain to speculate on the token? Was that our motivation for being here? Speaking in the first person, is that why I am here?
The answer is obviously no. I came to steemit to create content in hopes of growing and getting paid for it. I like the community and want to see it enhanced. For this to happen, I have a responsibility to make myself as strong as I can so that I can empower others. It seems the more I analyze this, the less we are able to deny the endless loop that we find on here. Help others to help ourselves.
Therefore, I decided that I am converting 50% of the SBD I get to SP and powering up.
To me, this gives me the best of both worlds. If SBD is a pump and the price does head lower, I am booking some profits by taking half of the SBD I have coming in and powering up. This leaves the other half to speculate with in case @haejin's call is correct. Of course, I am still free to power up with the rest if I see the price of SBD going south.
I just converted 15 SBD and received 104.272 STEEM (6.98 STEEM per 1 SBD). I used https://steemit.com/market and enter the amount of 15 SBD in the SBD box on the buy side. The rest was filled in and I hit "buy steem". Once the STEEM hit my account, I hit power up in the drop down arrow which transferred the STEEM to SP. My SP is now 104.272 greater than it was before.
So what was my true gain there?
1 SBD entitles me to $1 of STEEM by design. Therefore, 15 SBD entitles me to $15 worth of STEEM. Using the price of $1.70, I normally would get 8.823 STEEM ($15 divided by $1.70). I received 104.272 STEEM which is 11.818 times what I normally would get.
So while there is such a great premium on SBD, this will be my approach. As things change, I will update everyone as to what I am doing. Obviously, these are my personal decisions and should not be taken as financial advice in any way, shape, or form.
If you found this to be helpful, please give it an upvote and resteem.
Pictures by Google Images.
Great post - and I like you're compromise! I have been selling all my SBD and powering up but I might start to HODL a bit now.
Just want to add a correction that $31.45 is only about 2.6 times the current price of about $12 / SBD. You were looking at the conversion of SBD to STEEM at approximately 6 to 1 but STEEM is worth closer to $2 now.
Coinmarketcap has SBD at $6.73. There seems to be a great difference between the prices.
Going through the internal market on here, I got just under $7.
I see the pricing on coingecko but dont think we are getting that on here.
Coinmarketcap is excluding bittrex which has around 90% of the total volume of SBD trading. It's thinking it's an "outlier" but really it's the other exchanges that seem to fall in that category when you look at the volume
Also on the internal market you're getting just under 7 STEEM per SBD, not $7 USD - big difference there!
Yes that is what I mean...sorry typo.
I got like 6.98 STEEM
Right so at $1.72 / STEEM that comes to just about exactly $12 / SBD!
Damn long day @yabapmatt
You are correct. So I just got under $12 per SBD. Okay that makes sense since I got 104 STEEM which is about $180....
I use to be good at math too.
Sitting here waiting on my LTC I just bought to add some more STEEM...the "faster" network is at 46 minutes and counting. LOL
Ha no problem - although I'm as happy as everyone else about what's going on with SBDs, I do feel it's overall a bad thing for the Steem platform for precisely this reason.
They exist to make things simpler for people - no conversion math to do, 1 SBD = $1 USD. Without that it defeats the purpose of SBDs entirely.
But I guess I shouldn't look a gift horse in the mouth as the saying goes!
good decision bro taking steem n power up thanks for information lol.
Interesting post. I have been debating with myself how i should approach this. In some way i guess just selling everything for steem now would be the safest and risking not missing out on a good deal. In the other hand it could be wise to use the 50/50 method and sell half of what you earn on steem dollars and the other half you safe for bigger gains.
It's never a easy decision.
I'll just make sure to catch these great Steem/SBD ratios... we just cant get the very best (only with luck) so we better make sure to take the average!
I also got a nice premium for my SBD. I agree, it's a gift, best to use it to improve the platform in the long-term rather than speculate on random, unlikely price fluctuations. Thanks for sharing this 🙏🏽
I'm all in on Steem. I see SBD as just a means to an end... and that end is more Steem. I want this platform to grow, and I'd love to get to a point where maybe Steemit is my part-time job. I'll be converting all my SBD into Steem in order to grown in Steem Power and be more useful to my community. I've learnt from you that giving is the only way forward for us all!
Bravo
Thank you! I honestly can't wait until my account has a bit more oomph to help newbies and those providing quality.
Hard for me to argue with that attitude. It is wonderful when a circle of people get together and start to empower each other. It might take some time but in 90 days, each of us will have more SP than we have now. That will make the entire circle that much stronger and effective.
Thanks! People like you are the main reason I'm hitting this platform with everything I've got. Everyone has been so supportive and generous with their time, how could I not be passionate about this platform. I keep learning new things every day (I just found out about steembay and steemgigs and steem auctions... amazing.
Thank you for this explanation!
I wondered what had gone wrong with my recent conversion.... I wish I had known that the "convert to steem" option in the wallet next to my SBD in essence does just this:
Whereas if I had gone through the marketplace I would have gotten:
Lesson learned!
I think it's a great compromise. It's basically selling SBD and reinvesting it into crypto, in this case STEEM. I myself put it into Bitcoin for now, because I have too little of it in my portfolio currently, and I think it will continue to go up. STEEM may be pumped by the high SBD price though, so I am not so sure if the high price will remain if SBD doesn't stay this high. Which would indicate it could drop cheaper, and if Bitcoin goes higher, who knows how much more STEEM that could be. But it's all a gamble, obviously... @haejin says STEEM will go to $4.
All I know is that I am 95% in altcoins, and it's been terrible this current Bitcoin bullrun, so I am feeling the Bitcoin fomo and am glad to increase my stack in that (I suppose this is an indicator that the top has been reached and we'll be bearish from now on... Murphy's Law)
@haejin has BTC going to $25K so we both better hope he is right all around. LOL
Yeah @pandorasbox when I realized that the premium on SBD was 11 times the norm, too good to pass up.....I will monitor over the next few days and if SBD/STEEM ratio stays where it is, I will continue.
Since I have no idea if this pump was the prelude to a dump or someone actually doing something for a longer term (like you said, know something we dont) I am kind of swimming in no man's land.
So when you said take profits, framed like that, I am cashing in on some of the gift that is in front of me.
I've been contemplating for days whether to continue speculating on the SBD price, or convert to SP. I'm still hodl'ing through pure stubborness! But I do like your suggestion of powering up with half of it. Thanks!
Until about 30 minutes ago, @retiredinsamar, I was stubbornly hodl'ing too.
Now I am being stubborn with half LOL
Same here!
I mostly started this account thx to @shaungerow and I’m glad I can post things that my friends or family won’t say a damn word or give me their 2 cents which is really annoying .its nice to get SDB from writing about what your passionate about or just cuz you would like to be heard and not care about the money you can make
Welcome @patrickleclair.
We are glad you are here. You will find this place to be very freeing. There are no admin or moderators so you are free to post whatever moves you.
Plus you make can some coin in the process.
I actually did come here for speculation, it wasn't until the addictiveness took over that I became a convert (it even shook me out of the fiat daze I was having in other crypto). Im trading into steem as soon as my payouts hit.
Or you could just buy some delicious nuts for Christmas from a fellow Steemian with your SBD and forget about the price. ☺
https://steemit.com/christmas/@moeknows/use-your-steem-and-sbd-to-purchase-a-great-tasting-christmas-present
I'm still new here and accidentally put 5 SBD into conversion :( I just threw 30 STEEM in the drain.
Damn...that sucks.
Well we live and learn.
Use the internal market for that....
steemit.com/market
Will do, just figured it out thanks to your post
Good post and analysis! Since I’m quite new on this platform I will take advantage of this high price to get more SP like you did. I play in the long term: with more SP, I can get more revenue later on this platform.
Better even is to use Bittrex. Coingecko is ideal to check rates, SBD has been trading at much more than $6 recently, but not on every market.
To be honest, there isn’t much going on. Many professional traders invested in BTC for the free tokens with the 2X fork, BTC has since only grown and many have diverted back into alt coins. Several alt coins have found what were considered reasonable levels (again), while others are a perfect ground for traders to play the volatility, pump/dump game.
With only 3.6m tokens available, any larger traders or whale with some disposable liquidity can impact the SBD market, especially since SBD is daily cashed out by many thus always bringing new SBD to the game.
Goog morning, exellent post for morning coffee
@haeijn is great!
I have profited a lot because of him.
But I don't think SBD is going to be $30!
If it happens then it will be great great and great for steemit because both of it's currency will increase because of SBD and everybody will join to take some part of the profit!
@taskmaster4450 - Given the high price of SBD at the moment, it might make sense to simply cash in the SBD for BTC. I'm not convinced SBD will stay this high for too long. You can transfer SBD to bittrex and sell it there..
That is a good option also... Trade for any crypto! But Steem is probably a good safe bet.