INCREASE AND DECREASE IN AMOUNT OF AUTHOR'S PAYOUT; WHAT CAUSES IT

Am back again with another session of steemit tutorials this beautiful day. I was pondering on what aspect of steemit to put light into for those that are novices and for those who want to know, then I thought about the increase and decrease in amount of payout before cashing it out.

A newbie once asked me what causes it and the simple answer is STEEM

The steemit blockchain was built around two cryptocurrencies and they are

SBD
STEEM

Steem was made in such a way that it should be higher than SBD on a good day, but what we have most times is the reverse case; that is SBD soaring higher than Steem.

Your Steem can be converted into what is known as STEEM POWER and the steempower is what determines the amount you give to any post you upvote.

So indirectly, the decrease in the price of Steem affects the payout to be received as it affects the Vote worth of one's steempower.

Let me explain using a car. We all know that a car that uses fuel must function properly with fuel and if the duel is not in the car, such a car will not work. We also know that cars have air-conditioning system or what we call a cooling system which works also by burning fuel in the car. Now it means the fuel is serving two duties, ensuring that the car works and ensuring that the A. C. of the car works. Now let us assume a situation where there is fuel scarcity and you have a little fuel to use for your car, automatically you will have to let go the use of A. C. that is the cooling system of the car and use the fuel mainly for the car to move.

Using the above analogy, Steem is the fuel which can be in abundance in the car sometimes and might be low sometimes, the car is Steemit that can only function with the availability of steem and the A. C. is your payout which is always affected by the availability of fuel.

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