I'm new and sorry if this has been asked before, however, I don't understand why it (currently) costs 1.24 BTC ($828 value) to purchase 221 "Steem Power" and the estimated value of 221SP in the wallet is only $221. I'm not looking to cash anything out; I like the platform and the idea, but I assume new users would feel that buying SP and it appearing to be devalued by almost 80% may be confused by this. Any insight into this would be greatly appreciated.
To calculate the dollar value in your wallet, it takes the number of Steem and Steem Power and multiplies them NOT by the current market price of Steem but rather by the AVERAGE market price of Steem over the last 7 days, which is currently about $1. There are a variety of reasons for this.
So, when markets are rising over the last seven days, the REAL value of your steem and steem power exceeds the amount in your wallet. And, when markets fall over the last seven days, the real value of your steem and steem power will be less than what's shown in your wallet.
Additionally, the dollar values that you seen for each post are also based on the average price of Steem over the last seven days and NOT the current market price. If it were based on the current market price the post value would constantly be bouncing around form minute to minute, which would be very confusing to people.
Got it! thanks so much for the detailed reply.
I believe the estimation is based on the median price of the last seven days. I. e. the price used for calculating the estimate does not yet take into account the latest price move. Wait a couple of days, and if the current steem price holds the estimate should adjust.
Thanks for the reply, that makes sense given the recent spike in the price of steem.