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RE: Crypto crunch
The common mistake folks make is thinking that as long as SBD is worth more than Steem they should 50/50. Actually, it doesn’t matter what the price of Steem is, it only matters if SBD is over or under a dollar. Over a dollar =50/50 better. Under a dollar = 100% SP better.
no shit? ok, if that's true, best explanation I heard
Yeah, it’s a common misconception. For a bit more depth... the key is that Steem calculates payments based off the current market rates of Steem, but always values 1 SBD as $1 regardless of the market.
For example, if Steem is $.50 and a post has a 50/50 $10 payout you’ll get 10 Steem and 5 SBD. (leaving out curation for simplicity!)
Now if SBD fell to .75 you’d still get the same amounts because the blockchain always sees SBD as $1. So you’d lose $1.25 of value. By contrast if SBD were at $1.25 on the markets in this situation, 50/50 would gain $1.25 of value by immediately trading that SBD for more Steem. If you wait & just hold SBD at an elevated price, you’re risking losing those gains as it has the tendency to trend back to $1.