Coin Market Cap - Finding The Data You Need
I searched far and wide for the Circulation Supply on SBD and could not find a site that supply this information. Digging into Coin Market Cap gave a part of what's required to determine it and with a bit of number crunching, low and behold. Below is a part of the information you want to look at when buying or holding on to SBD.
Need I Say More?
Cycle One
We can clearly see the first cycle of SBD during which a price increase (*due to an increase in demand, hence increased market capitalization) leads to an increase in circulation.
Looking at the blown up graph of the above highlighted timeline it is clear what an increase in circulation supply does to the price. The price settles around US$1 after circulation supply average out at approximately 3.5 million coins. From the initial circulation supply of around 1.0 million coins this is a 350% increase in the circulation supply of SBD coins to pull down the price.
Second Cycle
We are currently in the second cycle as highlighted in the below graph. It is clear that we are at a record high in SBD coins in circulation.
Blowing up the timeline highlighted in the above graph shows the trend. Circulation supply continues to increase as the price of SBD is forced to US$1. Currently circulation supply is almost 13.0 million coins which is a 1300% increase in coins since the start of the first cycle.
Additional Information
SBD Coin Market Cap Data
When I looked at data on Coin Market Cap for SBD the first time, I was confused as to why there is no Total Supply Data. This gives an indication on how much the coin will be devalued over a specific period (refer to below image).
For Steem this information is provided as seen below.
It is clear that the Circulation Supply for SBD provided by Coin Market Cap, is the current coins in circulation, with no total indicated. This can be monitored for an indication in the increase in coins in circulation. Circulation supply for SBD that was indicated on Coin Market Cap at the start of the first cycle (as explained above) was approximately 1.0 million coins.
Calculating SBD Circulation Supply
- Step 1 - See https://coinmarketcap.com/currencies/steem-dollars/historical-data/
- Step 2 - Select All Time Data as seen below
- Step 3 - Copy data to excel, average out "High" and "Low" SBD Price
- Step 4 - Determine Circulation Supply & Sketch Price and Circulation Supply
Steem Circulation Supply
@booster916 was kind enough to provide the following explanation on Steem Circulation Supply Increase:
"The rate that new tokens are generated was set to 9.5% per year starting in December 2016, and decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. The inflation will continue decreasing at this rate until it reaches 0.95%, after a period of approximately 20.5 years."
Conclusion
Although SBD is being devalued at a very high rate there is still a small amount of SBD coins in Circulation and a small change in the market can lead to price surges as witnessed in December 2017. This might be different in the future because of the extreme rate at which coins are being printed. SBD at US$1 seems to be the best time during which to buy and hold for a potential profit as witnessed during December 2017 when the price jumped from US$1 to more than US$15. Another advantage of buying at US$1 is that it cannot fall to much lower than US$1 because SBD will always be exchangeable for steem at US$1.
Image/Data Source
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Really helpful info, make me understand SBD better. Do you know what are the usages of SBD? What drive the demand?
Hi @wf9877
If you don't have a lot of Steem available and you have converted it all to Steem Power you can use SBD for bid bots and as far as I am aware that is the best way to spend your SBD. I would however avoid holding on to SBD for to long if the price of the coin is high (US$3 - US$15) because SBD is being printed at a very high rate. This means that if you have SBD in your wallet, it is being devalued at a very high rate and you are losing value.
There is however not a lot of SBD coins in circulation and a small influx into the Steemit ecosystem can lead to a considerable increase in the value of SBD and also have good potential for profit (if you hold SBD).
It is a decision you have to make because you are gambling on the possibility of the Steemit platform drawing more attention whilst your SBDs are devaluing at a very high rate.
Thanks very much!
I wonder how the supply of SBD went down?
I’m really curious how the supply of SBD goes down. Is it just an artifact of how the data is compiled or is SBD being burned somehow?
I think it is burnt when demand falls to a point where the price falls below US$1 because at that time you can exchange 1SBD for US$1 worth of Steem.
It is pretty darn annoying that there's no historical SBD supply anywhere. I've seen a few people in the past chart its history. Hopefully we can aggregate all of this somewhere and make a nice chart of it.
BTW, what does circulating supply mean? Is it just what's available on all known exchanges? Or on actual trade volume?
All good man
I also battled to get hold of the info. Realized that they pull one over on you if you hold on to SBD if SBD is higher than US$2 or so. I don't hold on to it because the increase in supply devalue your SBD at an extreme rate.
I've written 3 posts on it showing and discussing all the pro's and con's.
Check them put if ypu have the time. It is helpful if you want to avoid losing value.
I've used the data to generate a slightly different graph that demonstrates that the supply increase is driven pretty much entirely by the STEEM price, feel free to check it out. Thanks again for the way of pulling that historical data!
Love it!
On the money! Great to be able to compare. Some people get mad about what I've posted but I'm not trying to smeer SBD. It's just that they're trying to get it back to US$1 because that is what it is ment to be.
My conclusion was that you can hold on to SBD if you'd like but you have to know that you are gambling on the steemit platform attracting more traffic which will lead to an increase in price due to the low circulation supply vs. SBD being devalued at an extreme rate to get it back to US$1.
Thanks for the link.
Oh nevermind, I read it too fast the first time, it sounds like the computation you do is revealing the circulating supply = total SBD supply at that time. I've always wondered how to pull the whole history, thanks for that :)
Great data, @dpl! With no more steem payouts for several weeks now it seems clear they are attempting to push SBD back down to $1 USD parity. Maybe it's part of a strategy to try and prop up steem, given probably the majority of steem is invested long term in SP.
I was convinced from the very beginning that it was a big mistake on their part to have ever even created SBD to begin with. It seems to only add unnecessary additional confusion to the already very confusing steemit system to begin with for newbies to figure out. It would have made far more sense to just deal with steem and SP (steem power), which in and of itself seems overly complex.
I remember when I first started getting active here about 2 months ago that when I was telling my family and friends of steemit, one of the first questions that was asked after seeing $ dollar figures was if steemit actually pays in USD. When I said no, even though I said it's worth more, that confusion still threw them all for enough of a loop to never join.
Saludos, agradezco su información, interesante publicación.
Hi @Geivanny1000
Me alegra que hayas encontrado valor en la información. Gracias por los comentarios.
Sweet presentation. But 20.5years is not close at all, except if one has an aradite/stingy lifestyle. So that one can effectively invest for such a long term value. Thanks for enlightening me this weekend.
Hi @topfreeser
The 20 years from now is the time period it will take Steem to reach an inflation rate of close to 0%. After this period they will not print any additional coins and the Steem in circulation is all that would be left.
As for SBD (Steem Based Dollars) they always print more coins to force the price of SBD back to US$1. As ssen in the post, they have printed 1300% more coins from the time that there had been 1.0 million coins in circulation.
Right now I am looking for a good moment to change my SBD into STEEM.
Right now the ratio is becoming a little bit better but I am sure that in the mid and long term we will see SBD trying to go back to 1$
Agree with you @booster916
You can see the similarities in the First Cycle to that of the Second Cycle.
Another thing to keep in mind is that out of the close to 580 days for which data is available on Coin Market Cap the price has been close to or less than US$1 for 343 days (search was done on SBD smaller than US$1.15). This is a ratio of 60% at or < US$1.15 and 40% > US$1.15 as seen below.
Thank you for a very clear explanation on sbd.
Only a pleasure @clearbluecrypto
What is your position on SBD and Steem? Which do you like to hold onto?
I like steem just for the simple fact its easier to find on the exchange I use binance. It appears to have a higher value to sbd. Also I from the information you just gave in detail I don't like that steemit will try to keep the price of sbd down by flooding the market with it at certain times.
In your opinion what do you like to hold?
Hi @clearbluecrypto
If SBD is higher than US$1 it always tend to go back to US$1 or a bit lower. I hate holding SBD for to long during such times because you are losing a lot of value.
When SBD is US$1 and lower it is the perfect time to hold some because if there is a price surge you stand to benefit. If you time it right like December last your. You could have bought for US$1 and sold for 10 to 15 times more than that.
Coins mentioned in post:
It will pick up again!
saludos. : ¿( Steem.
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As the price drops we get more sp per dollar.
10sbd payout pays 5sbd and 50sp at .1usd steem.
10sbd payout pays 5sbd and 5sp at 1usd steem.
10sbd payout pays 5sbd and .5sp at 10usd steem.
Does the payout change linearly with the price of steem, or does a lower price mean having more sp as a ratio to payout?