Why SBD payouts are reduced and waiting for the markets to turn around.
You might have noticed that the amount of SBD you get for a post has reduced drastically.
I have.
I get about 2-3 SBD per post and a lot more liquid STEEM instead.
The reason for this is pretty simple and the system is working as intended.
All SBD's that are created need to me covered by $1 worth of STEEM.
In the good times (High STEEM price) a lot of SBD's were printed because the payouts were higher.
So, a $2000 post would create roughly around 750 SBD back then.
Easily covered by the high STEEM price. (at $5 dollar STEEM, 750SBD can be covered by 150 STEEM).
Now with the price of STEEM coming down the blockchain realises there is not enough STEEM to cover all the SBD's that were created in the past. (at $1,15 STEEM 750SBD needs to be covered by 652 STEEM).
So the blockchain creates more STEEM and less SBD's until balance is restored.
The mechanisms behind it are more complex but this is how it works in a nutshell.
It's not that it really matters for me.
I'm powering up everything I earn anyway and then some more that I buy with my own money.
STEEM price worries are probably on a lot of peoples minds.
I'm not immune to it.
I sure as hell feel it.
But you can't let it affect you.
This is the time to work extra hard and accumulate what you can.
The rule is pretty simple, accumulate in bad times and sell in good times.
Prices eventually will turn around and the more you have acquired now the better of you will be.
Just make sure you have enough time to sit it out.
Again it takes patience and believe that this blockchain will grow bigger in size than it is today.
I have been waiting for 2 years and a bit now.
I expect to wait some more.
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thanx
Very good information thanks
whats happening here lol 😂
Accumulate when things are low and sell when things are high...
It’s amazing that we all know that’s how to play the game but very few follow suit.
Sad because right now is the time to get as much STEEM as you can and power that stuff up!!! Good times ahead!!
Posted using Partiko iOS
100% truth
As my Granny always used to say..."Patience is a virtue." It's also a great time to buy a little steem along with working steemit to earn.
Where exactly does the Steem blockchain get the price from? I would be curious to know... Thanks!
from the witness price feeds, and they get them from a mix of differenct exchanges where steem is listed.
that is one of the reasons to vote for a witness like @blockbrothers (witness team with @exyle) or @swisswitness (where I am part of)
you are voting for @blockbrothers already (which is a good choice) but you are voting for quite a few dead witnesses as well
Thanks!
I really need to update my witness list one of the next days...
I didn't realize it worked that way! Thank you for explaining it in simple terms. I've been on here for so long, I find it funny that I still don't fully understand everything yet. I know the price will recover eventually so it's great to be patient.
Hi @exyle your words make me reflect. Every day I want to dedicate a bit of my time to steemit, I find it a bit difficult with the situation I live in Venezuela, but I'm still betting on steemit. I'm still waiting. I liked your post Thanks for the motivation.
Dear friend @exyle, I have been on this platform for almost 1 year, I think there is not a day that does not publish any story, food, contest and stop counting, I've been here stuck to my computer, as you do not have an idea, and I really do not know, if my posts are not of great value, but what I do know is that I have been here, faithfully publishing, I have come to the reputation I have, by God's mercy, but I have stayed, I see the publications of other people, who earn a lot and have been my guides, like you, who are an example, but also know that reaching the level that you have, you will have to spend many years.
I just think that with just a little help from insentient, one can run the best race, but being here every day and not being seen is hard, but this situation drives me not to faint and keep going, every day of my life, because I have a lot to thank this platform, just that it has not been easy, to get here.
If it is true what you say, that the prices have gone down and gone up, I do not know much about this, nor am I very knowledgeable about the subject, but I do see the changes.
You can not let this race go by, but if you continue, (you can not let it affect you). There is nothing that can be lost, just focus on the objective of the race, call the attention of someone of great importance and ask God to do a miracle, so that you can be seen, that you can get where you have not been and that It makes me very happy, for me you are someone important and very generous, I thank you every little contribution to a comment, I bless you my friend and I hope your success continues, thank you for your support and teachings, I want to follow your steps, although a thousand years later more, hahaha, Happy day dear friend.
Thanks for the info man. I totally agree with you. Steemit and all the decentralized applications based on it are the future.
So, for now- Buy... buy... buy!
Beleive in the blockchain
n just chill :)
I completely get the point you are making. The system is protecting SBD not to fall much below $1.00. However, if Steem goes much lower than $1.00, then I think it may take price of SBD down as well. Just the way it took price of SBD well above $1.00 In the past. That’s why I don’t believe Steem price goes much lower. I’m still waiting for Steem to get to $1.00 to pull the trigger. If we don’t get there, I’m fine with it.
You’ve been here longer than most of us. Does this crypto bear market feel the same as it did in past?
Good morning @exyle. I have my coffee as well. Woke up from a series of bad dreams so I just stayed up instead of laying back down.
I was just talking the other day about the SBD amounts being lower per post. Glad to gain a clear understanding of why it is happening. I am perfectly OK with getting more Steem instead of SBD.
Lately I’ve been using my SBD to buy Steem Monsters booster packs which has been fun. Enjoy the day buddy ☀️ Grateful to be a follower of yours.
-Ken (Cleveland, OH, USA)
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