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.
time to do that you are very right its going to be more beneficial
This is fucking horrible. I never ever sbd would come this far :(
What is horrible? Now is when you make money.
hey thanks for information i just switch after reading this thanks again
You are right with that advice, switching to 100% power Up should be the best these days cos no One would want to sell off the SBD in low price but once voting power is high, it shall be gained later, it would just be like investment
I am new to the steemit community and it is very demotivating right now to see the price of SBD falling... so badly
Though I am hoping that its a bear phase in the complete market which will probably soon subside..
But having said that I'm in favor of this down the road if steemit can substantially grow its user base and thus the marketcap to the point where SBD can actually serve it's function as a stable asset... we definitely need more stability in cryptos for them to be used against fiat....
Also, have a question..? Is it a good time to buy STEEM DOLLAR ?
Following your suggestion @broncnutz of 100% power up for the time being.. Thank you
I would never buy SBD....just earn them. It’s a great time to buy Steem though which is the actual token that powers the blockchain.
Thank you :))
last few days it gets horrible.the rate is too low.sometime bit confusing, what will be the right step.lets see how far the drama goes..
tnx man for post.
I have been watching and monitoring this situation closely as SBD has continued to fall. That $1 mark is a crucial moment when you have to change things up. Don’t fear change people just make sure you are making the right decisions to maximize your efforts. This might be a fantastic time to swipe up some of these tokens as well. I don’t see Steem sitting this low forever and you’ll have a smile on your face later if you dig your heels in and grab some more. Sunday Bloody Sunday can’t last.
Actually, 50/50 and 100% power up are about equal right now. Personally, I am still doing 50/50 in case the witnesses increase the interest rate.
Now that SBD has come to cca 1 $ at least we know that there will not be any radical change anymore downhill.
Or not?
Thanks for this great information
We all need to power up now and watch the price for the next move
@broncnutz can i purchase power to improve my profile????
Yes!best place to do it is probably binance or bitrex
Every new investor now is heart broken because of the falling prices. Every new user is REKT. If they had invested 1000$, now they are left with only 200$. To even get the invested amount back the value must now increase 4 to 5 times which is now gonna take a lot of time.
Dont worry too much about the bigger picture - concentrate on gaining your ether or BTC or whatever you choose as your trading pair for now i think, we will have plenty of time to worry about overall market prices when we need to cash out to fiat again.
Make sure you do not invest anything you cannot afford and you wont be forced to cash out at a bad price, but instead wait until the ETH or BTC you have gained is at a price that YOU are happy with. Just my 2 cents :)
Thanks! I noticed that SBD dropped below a dollar. The only problem I see is that it may not last long and since payouts are not paid for 7 days I'm betting that SBD is going over a dollar before the payout comes through. If it becomes clear that its gonna stay depressed for a while I will switch to full power up. I do want the most steem power possible but I also want to play the SBD market to try to grab more steem power. Been struggling almost a year now and probably gonna give it up if I can't make headway before my anniversary date rolls around next month.
Well it sure was expected and as for the post payouts will select few to see out the results !
Well like you said no one knows how long will it stay this way !
Lets hope for the best !
Thanks for the information. I have been seeing a few other people contemplating about changing over to straight steem. i think it's time too.
Very sad and unpredictable news. I cant imagine the sbd value like this.
Much respect for this... Days are dim but we are still thriving! Good info sir... Resteemed
Yes, it is better to have the 100% option, except if you want to have some ready cash available.
Thx sir for the info
Thanks. Some valid points here
Great idea sir,thanks for letting us know but is it really tough for sbd now to reach 5$ what are your suggestions.
Thanks for your Information. Now I am seeing Steem Dollars price for today is $1.0205.
Steemit is a blogging and social networking platform. Those who are new, this time will be profitable to buy SBD for her. and on the other side Those who sell SBD he will be harmed.
Thanks for sharing sir actually its not a bad idea to power up now.
How low can it go , pennies ? micro pennies IDGF units ? https://steemit.com/steemit/@vaerospace/steemit-is-tanking
Sir should i change to 100% power up.
How did Steemit feel like a drug like a drug?
OG @broncnutz hello! So much I need to learn about Steemit, but first, I need to post something to even try this 100% power up. Thank you for the enlightenment on this matter OG, much appreciated!
Have a good one!
hi @broncnutz
you've wrote:
"you always have the choice to split your payouts 50/50 between Steem & SBD OR choose the 100% power up option when posting"
I always used to have that option but I dont see it any more. Are you sure it's not disabled already?
Great post. upvoted big time
Piotr
I just found out that you actually answered my question at the bottom of your post @broncnutz
Great job!
Thanks
It's good tips for steemit users
hi paedeep how r u ... i m newable on steemit .. help me
Ohh... nice information for me ... waiting for next knowledgeable post...
Thanks for sharing .... best of luck sir