If you looked up the price of both Steem and SBD, you'll have noticed they are virtually the same now... what does this mean?
I was minding my own business and checking my upcoming rewards in Steem Supply when I found this:
So... it happened!
Steem Backed Dollars finally stopped being worth more than STEEM. I was expecting this, powering up like crazy while a lot of people were holding on to their SBDs waiting for what technical analysts pointed as a correction for a HUGE SKYROCKETING of the price.
Well, I don't regret it one bit, the numbers are on my side and now Powering Up will be tougher.
Through this article I'm going to discuss the relation between Steem Backed Dollars and STEEM - the Blockchain's Flagship token.
I Was Warning Everyone to Take Advantage of Powering UP:
I know I'm only 1 month old, but as I am quite active I made a lot of friends here already. I was advising them to power up as much as they could, because you could buy more than 1 Steem per SBD and that was a ratio I didn't expect would stick.
Some considered my words, others shared the same view, but most people referred to technical analysis and claimed that SBD would skyrocket, hitting $30 soon.
Well, SBD has all the reasons in the world to go down, not up, and being a fundamental analysis fan myself, I kept powering up... I'm glad I did, and even if SBD would rise substantially as they say... I wouldn't regret it.
The trend is down for SBD, and let me tell you why.
SBD May Recover: But THIS is the Trend!
So, continuing with my line of thought, Steem Backed Dollars have all the reasons in the world to go down, not up.
These reasons are:
- It was initially meant to be pegged to 1 USD;
- SBD Quantities are Perpetually Rising at a Fast Rate;
- SBD is a currency that gets sold more than bought - people use it to buy STEEM or Cash Out!
- There's no reason to keep SBD other than to pay for Bots;
- @grumpycat and some others are trying to decrease the price by printing more SBDs.
Among other things.
If you understand the market, you'll see that speculation is what keeps SBD up... that and the Fear of Missing Out.
If SBD increases in value and gets back up, it won't be because of a reason that is inherent to the market, but one emotional one inherent to humans instead.
There's no fundamental reason on why SBD shouldn't continue its decline.
STEEM is Now Capable of Constant Rising: Room for Growth
On the other hand, STEEM has all the reasons in the world to go up.
Some of those reasons are:
- You are Incentivized Not to Sell it Through Steem Power;
- You have liquidity restrictions such as savings and, again, Steem Power;
- The platform is growing and developing;
- The token is getting more attention lately;
Among others.
Now, with SBD not higher than STEEM, people will need more rewards in order to buy STEEM Power, and as such they will have to spend more and more to get it.
It becomes rarer, so supply and demand. It will grow. The harder it is to get Steem Power, the higher the price will go.
As such, this marks the beggining of the growth for STEEM, in my honest opinion, though I'm far from an expert.
Only time will tell.
Did You Stock Enough SP? I Sure Didn't!
If SBD keeps going down, it will be harder to get SP... so the question is, did you power up enough? Did you manage to get enough SP?
Well, I certainly wish I could have gotten more when I could buy 2 Steem per 1 SBD, that one is a sure thing.
I'll conclude the article by telling you that, if you're a newbie, you should still power up all you can, because the difference will only become larger with time, and there will be a time in which 1 SBD can only buy 0.01 Steem and so on... so grab it now while it is still a great bargain.
This is my advice, but I'm not responsible for your decisions, and it is only my opinion - again, I know nothing, if I did I would be rich, and I'm certainly not.
Just consider these words and think about them on your own.
Cheers!
- Start Mining from your PC or Mobile
- Claim Free Litecoin
- Get more Steem Votes
- All Images Copyrights Free From Pixabay
I haven't powered up with SBD. I've been using my SBD to cash out and buy other alts on Bittrex and I use a few to pay bots. I'll just hold the Steem I have now and "earn" new Steem. I like diversifying and SBD has allowed me to diversify.
Well, you have a lot of Steem by now so the rules don't apply to you :p I wrote this mostly for newbies.
With steem overtaking sbd in price, would it be advantageous taking 100% steem payout instead of 50/50?
NOPE... I am making a post NOW that explains this, but in short, you get SBD like it was $1 U$D, and in amounts that "equalize" with STEEM. If Steem is $6, you will get 6 SBD with a 50/50 reward. You can then use this 6 SBD to grab 6 steem. If you use 100% payouts to power-up, you will get 2 steem. The system sees 1 steem @ $6 as equal to 6 SBD, regardless of SBD prices. It was REALLY CRAZY when I was getting 10 SP for 1 SBD, I Loved It! My article comes out tomorrow... I will link Max's article here, and resteem.
I'm hoping Max will resteem and link back for me, once I have a link LOL ;)
Here it is: https://steemit.com/steem/@underground/we-have-reached-parity-and-passed-it-so-do-i-keep-powering-up
Hi @underground, QUESTION: I have post payout set at 50/50. On my latest post I got $94.42 in author rewards. This was split SBD 47.21 and only 8.22 Steem. If they are in parity, why is the STEEM payout 6x less than the SBD payout? Why am i not getting SBD 47.21 and only 47.21 Steem?
the system sees STEEM as worth $5.74 so it awards 8.22 steem (8.22x5.743309) so the numbers work, 8.22 steem = $47.21... The system also stills awards 47.21 SBD because it is presumably pegged to the U$D, so you get an "Equal Payout" in SBD... but wait! SBD went a lot higher, so this is a temporary "BONUS" or rather, a Glitch in the system. I bet they "fix" this in HF 20, and SBD rewards will be adjustable according to market value. So Take Advantage of it while you can! HF 20 is still being worked on as far as I know. Good Q, Colin!
Wow, I have looking for answers on Steemit all day. That explains it very well. Thank you, thank you, thank you
it giving more sbd in this case isn't much of a glitch in my opinion, it just provides a way to stabalize the share prices into higher trading values afaik its not pegged down to a dollar its only pegged to not drop under a dollar, its only a way to measure a relative value of capital and shares, and it does that quite accurately even considering rewards, since shares are now handed out in a higher degree of scarecity when while they were worth 3 times less than sbd it brought the reward quantities closer together, and as that drifts apart the value drifts together, bringing steem up and sbd down and permanently making both relative sides of the market worth more to the outside world, creating that rising trend in combined value we see now.
hi
@underground Got it. Looked into payouts again and how quickly I forget. I've figured it out (again). Here's an example: say the payout that shows is $12. 75% goes to the author and 25% goes to the curators, so the split is $9 and $3, respectively. The $9 payout to the author is split 50/50 in SP and SBD, $4.50 each.
Since the SBD was originally pegged to $1USD, you receive 4.50 SBD and $4.50 worth of SP. Assuming the avg price of STEEM was trading at $6 during the earning period of your post, you would get 0.75 SP (4.50/6). So the final payout you would receive from the post is 4.50 SBD + 0.75 SP. I think there are other factors that go into the final payout numbers, but this is general idea of the payout structure from my research.
@colinbrazendale If SBD was trading at $1USD as it was intended to be, you would have received 8.22 SBD and 8.22 STEEM, but since SBD is trading around $6 you are actually making more in USD than originally intended. Assuming a $6 price in SBD and STEEM, your approximate payout for the post in USD is around (47.21 * $6) + (8.22 * $6) = $332.58.
I have been watching this too and expect SBD to go down to $1 USD. I wasn't sure what the effect on Steem would be but I hope you're right!
Great post and very wise words, it was good while it lasted. Thanks for sharing.
Agree... that price difference will be missed!
Thanks for this well written and insightful article. This is info that I haven't found on any other blog or channel. Are there any tools you can recommend to us that allow one to gain more insight into what Steem is doing?
I don't see any tools that enable you to see what the market is doing, you can hear what fundamental analysis like me think or technical analysts like @haejin say.
@nzfxtrader If you're looking for tracking price action, I'd recommend tradingview.com
YES, I've been following your (and of course there were some others...) advise and have, without checking rates, bought SP for my SBD! I wasn't even having SBD when you still could by 2 STEEM for 1 SBD, so I was late to the game anyway, but I have bought SP while it was still a bargain (and will keep on doing so...)
Thanks for writing clear pieces, you're definitely part of the reason why I at least have been able to build 'some' SP while I still could :-)
That means a lot, the fact that I'm helping :)
I'm glad to see you again here in my comments section and that you liked the piece.
Will see you around! Cheers!
Here goes @spiritualmax again!! Super stuff my guy, as always, enjoy reading and learning from your posts... stocking up that SP while we can bc, like you said, it's only going to get tougher from here on out
Yeap... in a year or so people will have a tough job even getting 50 SP without investment, so the more you can get now the better!
@spiritualmax your energy here in gaining perspective and sharing it is very much appreciated. I am one of those you advised and immediate took action to correct my previous choice. I am grateful for your influence on this community with sharing what you are passionate about, for we are expanding into this "newness" together!
This is great content here and it is helping me tremendously, very blessed for us to be connected. Just like you said in the article, you have met many on here and that speaks volumes to who you are!
Happy New Moon my friend and hope we physically can connect one day too!
Thank you for taking the time to comment and I'm glad you feel that way my friend.
Who knows what life has in store for us, maybe one day we'll cross paths.
Glad to see you around here!
Cheers
Another great read. I noticed the 1 = 1 myself. Today I was finally able to reach the 500 SP, which is worth a little celebration. Let's see how things turn out over the next couple of months, but I feel like there's a lot of truth in what you're saying here.
Saludos,
Vince
I still couldn't reach 500 SP, but my goal is 1000 to complete the 1KSP program.
It is getting harder and harder to build up, but once it is done with Steem prices climbing we'll both be well off :D
Cheers Vince!
You're doing great buddy.
I'm not that goal oriented, but I try to enjoy the process as much as possible.
Have a great day!
your bro from another mo
You were smart to power up! I did half and half, I had JUST gotten s crypto wallet to start collecting some crypto so I kind of went nuts.
I do hope that SMT release will pump sbd up again, and hopefully before Steem rises more but we will have to see. I may hold on to my sbd in anticipation for this but only if its low enough to justify not buying crypto. Once my crypto goes up, I’ll be back to power up!
Yeah, only time will tell... just the market being the market here.
I'm currently taking a little slice out of the SBDs to purchase EOS.
I'm a little over a month old too! When i first got on sbd to steem was 1:5.... ah, now 1:1!!! over 500 sp thank god... but i want to have more sp too! i plan on working my sbd in the crypto markets then trading to steem and POWERING UP!nice article. following you now ;D
You lucky dawg! When I got here it was already just 1 SBD = 2.9 Steem
Hence I only have 350 SP... sigh
Thanks for the follow mate. Hope to see you around-.
Cheers
I took your advice awhile back as well, and got as much steem with sbd as possible, so thanks for that. :-) I keep a few sbd's on hand, just cause... but getting steem whenever ya can is the way to go. Have a great evening.
Maybe it will skyrocket as technical Analysts say, and you can get a good price for your SBDs.
Cheers man, good luck!
It definitely makes it harder for new Steemians to get a jump start- having the high value SBD was certainly good for me in my first introduction post (that did remarkably well). I was able to increase my SP right from the get go. Anyways I think Powering Up is probably smart.
Yeap, it generates interest to offset inflation and that is a win-win in itself.
Thank you for the comment!
I’m really impressed by your ethic on here @spiritualmax. You put out awesome content and respond to your readers. You got a follow from me today, and I am going to go back and read all your posts- seems like I could learn a thing or two.
Wow thanks! And thank you for the follow!
Yes I always answer any questions people may be having and cater to my readers... after all my growth is thanks to them.
THanks
We’re on the same page my friend. Nothing but gratitude for the people of the Steemit community..
looking forward to your future material for sure!
Thanks for sharing :)
Thanks!
I forsee them pulling apart and coming together again, each time bringing steem higher. Powerdowns and large sales caused the prices to initially pull apart in my opinion.
Thanks for the comment! Glad to see you around Kettle!
Damn, was it really only a month ago you could buy 2 STEEM with 1 SBD? I knew things were changing, but having only recently gotten my first SBD's I was unaware of what was going on before hand.
Yeah, and Steem was 0.30 not too long ago... lol... Wish I was here in those days.
Jesus! Me too!
you're right, I'm sure that the trend will continue. Now this is the fact that the STEEM will grow further and I will also spend some of my SBD to increase my voice even at the rate of 2 SBD at 1 STEEM. But my opinion is that there will be no sharp fall in the SBD - it is simply not beneficial to the majority. The fact is that it is rewards in the SBD - an engine for many newcomers and a chance to earn something. If the rate is very low - people with will lose the motivation to be on the platform - and this again - is not profitable.
But this is my opinion
Good article)
Yes, but how will you keep the prices up? .
You mean SBD?
Yes, how will SBDs be kept up with all of the pressures bringing it down?
most likely they will be as volatile as they are now, but have a lower cost. That is, they are not quoted on external plafformov and exchanges as a STEEM. I read the opinions of different people - it all converges on the fact that STEEM will grow and I agree with this opinion. But opinions about the SBD are divided. What is your opinion?
The one I say in the article, that SBD has no reason to rise, all market laws pull it down. The only thing putting it up is speculation.
I traded stocks for a long time and studied technical analysis. One thing I can say with certainty is that the Crypto-currency is more speculative. Therefore, to say that the SBD is growing due to speculation - and therefore because of the interest of some individuals - these are obvious things.
But I support your idea. They have the truth
I was pretty lucky that I was able to listen to your advice which I managed to power up as soon as possible although that I have few resources. Great job on the article!
Thanks man, glad to see you around here again :)
Indeed although that I was wondering that is it possible that other whales were able to print more SBD via up voting their own comments?
Yes, some do that already.
Well yes, it is something to take into account always raise the power to vote whenever possible, but I do not think that this is now an irreversible trend, that will take time to happen. This crypto world is very volatile, who knows what can happen. Greeting and great post!
Exactly, nobody knows, but the trend is down so even if it raises, it's going to ultimately be lower than STEEM.
Thank you for the advice and real reasons why it changes, I really have no idea how currency prices or anything like that work, so this insight is very valuable!
Arigato!
No problem, I know many don't know about this, and that's partially why SBD goes up so much, people don't see it is nailed down. On the other hand, speculation also helps it rise from time to time, but there will be a time in which SBD will never again be higher than Steem, and Steem will rise in price.
Cheers!
hmm I guess we will see in the future how it all plays out? Although it is all great as the Steemit blockchain grows, it may effect people like I who eat food paid for with Steem! Luckily we can sell Steem too though.
I don´t think this is a biggie - especially not for us newbies. As you said, I only use SBD for bots. The question only is, if it´s now the time to switch from 50/50 to 100%SP posting option....
I still have to study when that is worth it or not. Will let you guys know when I reach a conclusion.
You may be right but this is artificial suppression by printing more. If it doesn’t work for Fiat, how long I’ll it work for here.
There is too much sell pressure on SBD, and if you will believe me there are no buyers. See my last 2 posts and you will understand. Selling SBD or attempting to is the wrong thing right now.
SBD will always be printed more and more as people get in.
Okay then please explain the recent spike in price. It has been brought down artificially now. In a real market it wouldn’t be true. Are you saying that steemit is manipulating crypto?
Nope, the market spike was speculation and FOMO... and the artificial part only sped up the downtrend, the fact stands that the market pulls SBD down through all of the incentives to spend it and the permanent inflation etc etc... now explain to me, what does the market give SBD to make it go up? What mechanism is there for it to value if it gets printed increasingly more with adoption and all of that.
Okay so your explanation is FOMO and now grumpycat is being blamed for manipulating the market.
Whatever the explanation, free markets are not at work and if by any measure your assumptions are true then this is a platform where one person and some factors can manipulate the markets.
I must take a break from this. This to me is centralized indecency. Thanks for pointing it out. Hope you are wrong.
Will be back on steemit when it’s all sorted out.
I've only been on here a few weeks but i'm glad I powered up with the majority of my earnings ^_^ Thankyou for this well written post!
No problem mate, any time.
Cheers
how much time did you spend for this post my friend?
Its realy nice
You got a 0.50% upvote from @upme requested by: @spiritualmax.
Send at least 2.5 SBD to @upme with a post link in the memo field to receive upvote next round.
To support our activity, please vote for my master @suggeelson, as a STEEM Witness
monkey