Powerdown Statistics #5 - February 17th - March 2nd
Every two weeks or so I like to compare the current power down statistics and see how we stand.
Here they are:
17 February 2019
| STEEM | Amount |
|---|---|
| STEEMPOWER | 200,3 million |
| LIQUID STEEM | 99,9 million |
| SBD | 10 Million |
2 March 2019
| STEEM | Amount |
|---|---|
| STEEMPOWER | 200,2 million (-0,1 million) |
| LIQUID STEEM | 102,4 million (+2,5 million) |
| SBD | 9,5 million (-0.5 million) |
I was wrong two weeks ago when I thought SBD conversion would be happening less because the optimum conversion rate has passed (now that STEEM gone up in price).
It actually has increased by 0.1 million compared to two weeks ago. There are now 'only' 9,5 million SBD left.
We are slowly but steadily burning down that pile of SBD we accumulated in the insane price increase from the beginning of last year.
STEEMPOWER has been very stable even though there are still some very big accounts currently powering down. I guess they are either spreading it out over new accounts or someone else is offsetting by buying and powering up.
Either way. Good news.
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I'm still stupid here after almost two years. Is the sbd I get now in post rewards "new" sbd or part of the old pile? So confused...
Thank for this update @exyle. Noting this ...
... I wondered, given your Steem expertise, if you have ever written any detailed post about what formula or ?...? you use to determine the "optimum?"
In other words, how do you determine, with your SBD, when you would execute a conversion?
Just hoping you can "point" us in the right direction. Thanks in advance for your response!
Posted using Partiko Android
Tim Cliff wrote about it here: https://steemit.com/sbd/@timcliff/sbd-explained
And I wrote about it here (the comment section gives the most info) https://steemit.com/steem/@exyle/steem-s-inflation-is-too-high-in-2018-is-the-outstanding-sbd-becoming-a-danger-to-the-steem-supply
Thank you @exyle. I appreciate it!
You are welcome.
One thing I think the design of SBD did not account for, only clear in retrospect, is that it's more profitable to do conversions during a bear market than a bull market. In a bear market the price of SBD is irrationally low, giving more room for profit via conversions. In a bull market, the price is irrationally high so almost no conversions happen, even though this is when we as stakeholders should prefer to pay off the debt, when it would result in less inflation.
Yes I agree 100%. It makes more sense to accumulate SBD until STEEM comes down again in a bull market or to just plain sell it on the market/exchange than to convert it.
And another thing I think that wasn't taken into account when the system was made was the insane price movement STEEM went through creating massive amounts of SBD in a short time that later needed to be covered by a very low priced STEEM token.
I continue to opt for 100% Steem Power for my posts but given the printing and SBD price, I guees it may be best to go back to the 50/50! Your thoughts as I am always conflicted?
Posted using Partiko iOS
I always do 50/50. It gives me the most flexibility. Most of the time I buy STEEM with it, but at times also a Steem Monster Card or Drug wars building.
I'm just buying and giving away steem and steem accounts. When people say ahhh no I don't want it I just convert it now to a smartsteem delegation because of the 100% and let it grow for them. I will make special envelopes with a contract sort of paper with the account details on them so when they want it and lost the passwords I give them that special envelope. One of the last accounts I gave away was someone who worked hard and gotten his hours worked more revoked. So I made an account worth those hours. Also a drugwars account with some already invested so this will grow. My guts tell me that steem wil reach 10 dollar again and will surpass that so at the 10 dollar mark this account wil be worth 40 times as much without that 20% annual income it generates.
Also I bought in into drugwars like others and that will pump up the steem.
When the app of drugwars is coming out I believe this will be like a cathalist because this will be reachable by the masses (webbased games stays seperated like you have to search for it) and if there will be a in-game dollar/euro Google PayPal/creditcard/ideal option this will get lifted even more (I don't know if there are legal issues with that) you get an easy fiat/steem converter because drugwars is steembased.
In short I'm one of the ones who makes smaller accounts. 🤣😂🤣😂🤣
Posted using Partiko Android
As always thanks for this information. I feel like there are some new accounts that have popped up recently with a lot of SP so maybe you are right that the big accounts are spreading it out a little more. To what end, who knows...
The determining factor for SBD conversions is the difference between the market price and the collateral-derived price (how much you will sell the converted Steem for while accounting for risk, usually about $1 under normal circumstances). Any time there's enough of a difference to compensate for risk, rational arbitrage agents will do conversions because they are profitable.
That's also why the 'haircut' threshold only slows down inflation a bit, the market price ends up adjusting and compensating for the haircut, and conversions still happen and the threshold is pushed down. As an analogy it's like how sand bags can slow a flood but not really stop one.
Hopefully we have come to the end of the bear market and these issues will only matter now for the next one.
Liquid steem may be rising because of listing on new exchange may be
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