STEEM and SBD are coming down... Hint: its a good thing for us newbies

in #steemit7 years ago (edited)

This is just a quick note to explain to the people that don't fully understand the economics behind steemit, that contrary to what you might think, STEEM and SBD prices coming down is what you want. Quote link here

If you already have millions of $US worth of these currencies, then you might not be as happy. But If you are just starting out here, then this is the greatest gift you could get. The reason is you get more STEEM for each post as the price of STEEM goes lower. Right now we get almost double the amount of STEEM on each post than we were getting just a week ago.

And since the name of the game is to end up with lots of STEEM to have power and make your votes count, this is actually a great thing and you should be happy if it goes even lower.

You should plan on being here for the long run if you want to seriously make money here, so picking up more STEEM is always better. I hope it goes under a US$1, I'd get to be a whale in no time if that happened.

Just my quick thoughts and a message to the newbies that may not understand how it works yet. Sometimes knowing what to root for makes all the difference in your attitude. I'm pumped and this is the second greatest thing to happen this week (right after the #newbieresteemday launch by @mudcat36) ;)

Have a wonderful day and lets keep having fun and as we are growing every day (together)!!!

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I'm in full agreement that the price of Steem coming down is a good thing for newer people. Except when you already bought some at $5.75 USD, and then you turn around and buy more at $5.00. :)

Now, I'm wanting to get in on $3.05 Steem, but I'm up against Coinbase's buying limits. Any suggestions on a reputable exchange that will accept me right away? I've tried Bittrex, Poloniex and OpenLedger (the first two weren't taking new accounts or had a huge line, while the latter didn't instill much confidence upon first, second and third glance.

Thanks for the pep talk.

I understand how that feels, been in the financial business now 33 years.. lol... The averaging down is always a challenge because you never know when the selling runs out. I always fade in real life and when it goes lower I try to take the urge to jump all in at once and channel it into getting some more $ to get my dry powder bin higher. I'm currently doing that with silver. I'd love to be all in on it, but I am aware they can take it anywhere they want (in the short run) ..... And on here, since I'm still learning it, my investment has only been my time, so that is something that recharges every 24 hours and my dry powder is back ;)

I haven't gotten as far as you have on opening the accounts... I did send in application for poloniex and coinbase but had no luck getting past the guards at the gate. Hopefully we get a larger more experienced person to give you some answers. And if they aren't on this thread, come back and tell me :)

I will get some $ put in because I do think this has a chance. The market cap scared me at first, but the more I get involved the more I realize its potential... I actually hope the bubble pops on bitcoin soon which should clean out the "hot money" and give us a good base with which to enter.

Always good to hear from you my friend. Love your sense of humor, its right up my alley!

And i think this one explain further. ThanKs to you @glenalbrethsen. Thanks as well @davemccoy for the article.

yes @leebaong Glen is really sharp and good to listen to. Keep an eye out for him.

Yep. For that, i followed @glenalbrethsen too. This gonna be a wonderful journey with you guys.

Hi Dave, could you please explain what you mean by "getting almost double the amount of STEEM on each post"?

Can you give an example? Thanks!

The amount next to your post or comment is not the exact amount you get. To make things easiest to explain; lets assume that the comment you posted goes to 13.00. You get 75% of that back for being author. 13*.75=9.75 in payouts that belong to you. Next we divide that in half. So you would get 4.87 in SBD and 4.87 to allot to Steem. When the system rewards you in steem it does it at market price. So you would get 1.0xx Steem for your 4.87 at current market price(4.06 USD per steem). If the price of steem goes down to 2USD per steem then you would get 2 Steem for the same payout. If steem goes to 8 USD you would only get .5 Steem for same content. Us new folks benefit from low steem and high SBD. Hope this helps clarify.

Excelente explicación. Gracias, Albert. Pero, sigo como un poco tapado.

ok cool, thanx for the explanation.

It was my understanding that you were paid the SBD in amount pegged to $1. So if the author reward was $1, you would get 1 SBD even if the price of SBD were $5.

Is there a place where this information is listed?

They split the author reward 50/50. 50% you get at as a 1:1 exchange for SBD. 50% is allocated in steem which is purchased at market price. Steem.supply/@yourusername gives the current price of both. So @themanwithnoname in your example of 1$ you would get 0.50 SBD and around .125 SP at current price of steem.

Brain fart. Yes, I knew that half was paid out in SBD and half was SP. I didn't know why the SP amount wasn't .5. It's because that part is based on the current price of Steem. You're getting $0.50 worth of Steem.

The cool thing is that you still get 0.50 SBD which at today's rates is actually 1+ Steem if you exchange it. That is why it doesn't make sense to have "powered up" articles right now.

yes... exactly... and why it also makes sense to use the services like @bumper @earthnation-bot and @lila-wish-genie... they guarantee a return of your money by being 3x or higher which means after curation you will get your SBD back, plus extra steem and sbd for your effort... the only issue that can hurt you is if STEEM and SBD drop a lot in a short period (but since that is what you want for the long haul its something to cheer).

I had a couple of bad days a few days ago, but it really got good the 3 days after that.

I fill my limit of 3 x 0.50 on bumper every day
0.20 on lila-wish-genie
0.05 on earthnation-bot

all are no brainers to me

thanks for the help... jump in anytime.. I can't always get to it quickly and you have it down cold! :)

@royaleagle has this down... did you understand? Essentially it a tough concept to initially get your head around, but when you do then you realize you want 2 things to happen... 1 STEEM to go lower and 2 SBD to STEEM RATIO to wide (higher SBD to lower STEEM is the best)...

I will be writing an article about it soon...but royaleagle has it right

Did you understand @royaleagle's answer or would you like me to explain it further?... He is right btw.

All clear, thanks Dave!

awesome... it took me longer than you to get it, so good job ;)

The best time to buy in actually. Post good content so you can start gaining some good traction. Once it stabilizes it should be worth more in the end. Since you earning STEEM and not dollar, if I'm not mistaken.

Ah, I see. Thanks for the explanation @royaleagle. Have an upvote from me :).

Eso creo que lo puedo entender, pero dónde puedo corroborar u observar eso?

not entirely sure what you mean but create good content. I'm trying different things to sharpen my skills, i'm not a writer, though I can listen and talk...which is why I started podcasting and start curating where it goes in every episodes. As for observing, just deliver something of value I suppose. Like this post from @davemccoy, an idea I would have loved to talk about but I wouldn't need to... this seems good enough and I wouldn't improve it.

keep making comments like this in the other authors posts and you will go very far. Its exactly what you need to do. "listen and talk"... the more you do it, the more people you will connect with. I'm now connected to you simply because I can tell you are genuine. I try to make a minimum of 50 genuine comments a day. That is how you get to know people and (in my opinion) how you get traction here on steemit... Its a long term platform and the relatonships are real.

Thanks for reply to @zullusex, he's a great guy who is just trying to figure this out... I've tried to help him, but I don't speak much spanish so I think I have a language barrier to helping him.

Thanx for the kind words. Figuring things out is my specialty. 50 post a day is insane though. Here I think, type, rethink, go for a two day walk, come back retype... it’s a process. Though I’m making progress.

As for the language barrier, since we online, there’s google translate. I only speak and understand English and Afrikaans (Dutch derivative) but will try my best to translate and understand what people are talking about in their native language. You never know, you might just find it interested it interesting enough that you’d be hooked in translating most of the posts and comments since most of what I’ve seen sofar are something of substance.

lol not 50 posts, but 50 comments. much different.. But I'm talking like your comment here. Its not one sentence long, but it certainly didn't take you hours either... :)

And I think that is a great point about google translate, I even browse sometimes from chrome just so I can have it auto translate for me on steemit... very cool... I have made friends in korea and russia by doing this.

Oh right, sorry, morning brain. Awake now doing my ritual. I'm not a writer so I'm starting with that notion but... doesn't mean I can't convey a message although at times it feels so. I mean I'm not a podcaster or youtuber but I certainly am working hard towards it for the last two weeks. And as for making friends, yeah I try and do the same.

Steemit is a great social media tool although it's a bit tough getting into navigating around and keeping track. I'm not spending too much time here which is what I should be doing. instead Im learning voice enhancing skills and editing skills for when I do the podcasts.

Coincido contigo, hermano. Sé que Dave es excelente maestro y tiene mucho que dar. Particularmente yo tengo mucho que agradecerle.

gracias my friend... I didn't understand much, but I do recognize its a compliment :)

This post has received a 3.45 % upvote, thanks to: @davemccoy.

I totally agree with you Dave! Keep up the good work, you are really kicking some butt on here and helping us out. Can’t thank you enough.

You are right. I think we must be a lot of us with too much to thank to Dave.

I'm very happy to see you @zullusex, I thought you might've gotten discouraged.. I hope you don't because you will get it. It might take a little time, but I'm positive its something you can do... I've been to your portfolio several times checking on you and read through your personal stories and once people get to know you and your family, you will continue to grow your base.

I also notice you are picking up your followers too. So just keep going at it one by one, you will see it takes time but each day builds on the next... also make sure to use this initiative it will help you get more views on you posts while you build your following.

Again nice to see you and have an awesome day

Thank you very much, my brother. You have been everything to me in Steemit. Of course I will continue growig and learning. I keep on doing everything you told me. You are not only a good man, but an excellent teacher. I can see that not only me havelearnt a lot from you. It makes you a real good person.

thank you todd... I appreciate the encouragement.. some days its really nice to hear! I'm glad that we connected, you are always positive and uplifting!

Something else that helps growth is having the price of SBD higher than Steem.

Actually my Steem is under 0. Is it good?

Do you mean that you have 0 Steem token right now?

I was referring to the exchange rate of SBD to Steem. If SBD is worth $1 and Steem is $5, then you need 5 SBD to get 1 Steem. The price of SBD is higher than the price of Steem right now, so you get more Steem for your SBD.

You're steem isn't under 0 and it is growing little by little... I looked at your pending payouts and you have made far more from your comments that you have on any posts... that is good... Keep it up and also go to more author's posts too, the more sincere comments you can make the more you will both learn and earn.

ps... the tool to see your feed is on the steemworld.org site I showed you above.

Si es muy cierto amigo gracias por compartir, en ocaciones nos impacientamos y pensamos que todo es malo, pero no siempre es así, y aun con el precio bajo, también ganamos.

No hablo español bien, así que esto se traduce con google. gracias por su comentario y está en lo correcto, la paciencia es parte de lo que nos hace exitosos aquí.

Hi, Dave. Sorry for not writing anymore. I am very happy with your orientation. And this one is also another good one, but I do not understand much what you want to mean with that. Please. Could you give us an example.

I explained it the article I sent you about what's in your wallet... you can find the steem and sbd prices in US dollars on the trading exchanges...

Here are the links:

https://www.coingecko.com/en/coins/steem

https://www.coingecko.com/en/coins/steem-dollars

what does it meanDave, there are some moments that I upvote and It appears something like this in the left side of my screen: ...unidentify and some other words in red that I can not understand. What does it mean?

that is just a glitch in the computer screen and means what you are trying to do didn't work... Usually just retry what it was and it usually goes through the 2nd or 3rd time... it just started happening the last few day, but it is nothing wrong you are doing.

Yes, thanks Go. I was worry because I thought that I was loosing Steems or something else for wrong posts I had written . Well, I feel better now. Thank you for telling me.

Good news to start with more spirit. Thank you very much Mr.

thank u very much julies :) and welcome to steemit... let me know if I can ever help you and make sure to keep sending in your posts to #newbieresteemday ... and keep an eye out for many new things coming... its going to be fun

Thank you again Mr. Dave. This is good news from you. So far so good. Thanks for your hands. Togetherness will bring the victory near. Newbieresteemday is useful to me and other newbie. Great work. Thanks

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