Switch your posts to 100% power up! SBD price now in the gutter.
They say you wanna buy any asset when there is “blood in the streets” and today the Steem back dollar has officially reached the bloody stage we all knew was coming some day. For those not in the know on Steemit.com, you always have the choice to split your payouts 50/50 between Steem & SBD OR choose the 100% power up option when posting. Many of you are confused on what is the right choice for optimal account growth here and today things have changed and the best thing you can do is make adjustments to your posting payouts to stay in front of the herd.
The algorithm written for the Steem blockchain says the SBD price should be closely pegged to $1 USD but many of us had seen it balloon upto and well over 10.00 at some point. This phenomenon gave authors on Steemit a larger payout for posts because after getting paid with the SBD you could buy more Steem tokens than the post what designed to earn. The 50/50 option is what an author would want to choose anytime the SBD is valued over $1 because it allowed you to buy the most amount of Steem which is actually the token that powers the Steem blockchain. As of today this is no longer the case and your posting parameters should now be switched to 100% power up to maximize posting value because SBD are now under $1. This ratio is always changing but recently the delvelopers and witnesses have regulated the Cryptocurrency to force the price back down to where it was designed to be. Is this a good thing? Well it depends on how you look at it. Personally I would like to see free un centralized blockchains where the market will dictate price discovery. I do however think the SBD at $1 is more healthy for the longevity of Steem and Steemit.com because posts making lots of money from upvotes are able to pick up enormous amounts of Steem when swapping the currencies after the post payouts.
This price drop may be short lived and it may stay this way forever. The important take away from this post is understanding how this blockchain was designed and what is the best move for you as an author to achieve maximum results for your posting efforts. Don’t let this get you down, it may not last forever but even if it does you need to know the right play to get the best returns for your investment. Switch your posts to 100% power up for now and closely watch the price of SBD to ensure you make the most money for your content. The switch can be done by changing the option of post payout under the settings tab. There used to be a box you could check on the posting page but it has since been removed and now it can only be found under the settings tab.
Good luck and Steem on Suckas!
Nice! The peg is working!
Just saw this post. I think this is the best one you have done to help people position themselves. Thanks.
In a bear market SBD is much more valuable than steem who knows steem could all way go to 0.5 or 0.6 should BTc hit 4k or below. But at the same time considering a 7 days payout it is always good to switch for 100% power up.
Thanks for the info....it does give us information to make an informed decision. I'm still new to this and have small goals set. Once I get past - minnow (Plankton) - I will be able to prosper from your recommendations. Cheers GUNGA
if sbd drops to below $1 like $0.70 or less how is the price "pushed" back up to $1?
I also agree that the free market should decide the price instead of placed mechanisms to force the price peg. But I understand how it can quickly become unsustainable to have sbd at high prices.
The whole reason sbd spiked was because after the tether fud rumors started people flooded to sbd which they thought was also a tether style dollar coin
If the price drops below $1 then the witnesses will set an interest rate for held SBD. This encourages people to hold rather than sell, decreasing the SBD on the market. Lower supply puts upward pressure on the price.
You can always convert an SBD for $1 worth of STEEM (function in the blockchain). So when STEEM is 10 cent you can convert an SBD to 10 STEEM (over 7 days). This works even though an SBD might trade for 50 cent on the markets. This is how the peg is maintained on the underside.
Yea you are right, I always do that too
Exactly. That way - SBD is a lot more valuable in a bear market in comparison to STEEM.
EDIT: I did some extra research. I think I found some limitations in the whitepaper. I wrote about it in my blog.
Thanks for sharing nice tips with your followers. It reveals you care your followers very much. Keep sharing @broncnutz
Your posts are very interesting especially for me who is
still a beginner and I have to learn more do you want to be a
teacher for me.
Im powering up 100 percent all the time. Im glad it benefits me right now.
This is very much confused situation for new steemit users. So it is better to leave the settings as default for at least one month. So after one month the new users are more familiar with steemit and they can decide what they should do. For new users I would recommend them to focuss only in creating new post, Upvote if they like the post and write useful and good comments.
@ trending2018 .what you recommend for older steemit family members who still could not earn and make enough reputation ,regards
Does this work well,hope market will recover soon.