(EN/ES) Steemit Crypto Academy Contest Season 9 Week 4 - "Blockchain Steem: Debt Vs Ownership"
Hello everyone, I hope you all are doing well and enjoying your happy life. I am here to share my participation in the steemit engagement challenge season 9 week 4 in the steemit crypto academy. Today is another knowledgeable topic through which I have learned something new and informative.
Steem is a decentralized social media platform that has a debt & ownership ratio relationship from the beginning. The debt & ownership ratio plays an important role in the Steem ecosystem. The change in the value of Steem can make changes in the debt-ownership relationship. Debt is that which is owned by someone or a company.
Ownership means any equity in a company or on a platform. Ownerships shouldn't exceed more than the debt ratio. Debt ratio plays an important role in the investment process, if there is more debt ratio then investors are not interested to invest their money & time but if the debt ratio is less than the ownership ratio then investors, invest.
For calculating the indebtedness ratio we are using this formula:
Debt ratio = Total indebtedness (debts, loans) / (Ownership)Equity
For example, if the product price is,1000, and price for production is 250 and taken debt from anyone else is 750 then the calculated debt ratio is
Debt ratio = Total indebtedness (debts, loans) / (Ownership)Equity
Debt Ratio = 750/250
Debt ratio = 3
So, according to these calculations, the ownership ratio is too low like 25% and the debt ratio is 75% or 3 times more than the ownership ratio which means that we have less than the ownership ratio than the debt ratio & debt ratio is too high that we are the owner of only 25% products which is not good.
The difference between the centralized fiat world and the Steem network is that Steem is a decentralized blockchain and its reward distribution system. The centralized fiat world managed the debt-ownership ratio by its centralized 3rd parties like the government which stabilizes its value in the market while Steem is a decentralized platform where transactions are P2P & debt-ownership ratio is controlled by a mechanism to never exceed 10%.
On steem we are getting SBDs as debt and Steem or Steem power is our ownership. But the Steem ecosystem has control & maintains the debt:ownership ratio from exceeding too much that will affect their ownership. They control the ratio that ownership remains in the Steem ecosystem owners.
2 market conditions affect the debt-ownership ratio and here we have to discuss if the debt-ownership ratio of SBD/Steem is high. So, according to this, in these conditions market condition is bearish which means that SBD/Steem or debt-ownership ratio is high and conversely, there is a low Steem price.
Because when SBD/Steem ratio is 10% or more than 10% so there will be a stop in the printing of SBD. So, to calculate the payout percentage we have to use the following formula & calculations:
SBD print rate = 100% * (10 - debt ratio)
If the debt ratio is 9.8% then the calculated SBD print rate is
SBD print rate = 100% * (10-9.8)
SBD print rate = 100% * 0.2
SBD print rate = 20%
According to these calculations that if the debt ratio is 9.8 then the post payout will be 30% printed as an SBD and 70% payout as Steem and the same will be Steem Power. So, an increase or decrease in the debt ratio will affect SBD/Steem ratio or debt-ownership ratio.
To find the mechanism of Steem Blockchain used to control debt-ownership ratio by calculations and using given formulas.
For calculating the Steem market cap we have to find the virtual supply value by opening steemdb.io and Steem price through coinmarketcap.com. Here we have to add values in the given formula.
virtual_supply = 482053799.885
Steem market cap= Virtual supply * price
Steem market cap= 482053799.885 * $0.1944
Steem market cap = 93,711,258.698
For calculating the SBD market cap we have to the take value of the current SBD supply from steemdb.io and the SBD price will be $1, it doesn't exceed above $1 as SBD never depends on the external market price. Here we have to add values in the given formula:
Current SBD supply = 12152827.54
SBD Market cap= 12152827.54 * $1
SBD Market cap= 12152827.54
After calculating the values of Steem & SBD's market cap, now we have to find their current debt-ownership ratio by the given formula and put the values calculated above. If the debt ratio is equal to or greater than 10% then SBD will not print out and ultimately Steem price decreases.
Current Debt-to-ownership ratio = SBD Market Cap / Steem Market Cap
Current Debt-to-ownership ratio = 12152827.54/96,121,527.697
Current Debt-to-ownership ratio = 0.1297
According to the calculations the debt ratio is around 13 % or 12.9% which is more than 10% and SBD printing rate is 0% at that point. So, the 0% reward on steemit is given in SBD and 100% is given in Steem and same as Steem power. If the debt-ownership ratio remains 10% or more than 10% then there will no print out of SBD, it will if debt ratio become less than 10%.
It's the easiest thing for me which I learned on steemit a few months back. We have to follow a few steps to convert SBD into Steem. First, you have to log in to your steemit wallet by using the login key.
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Then click on the SBD which is present in your steemit wallet. There will be more options on click the SBD icon, we have to click on the market option.
There will be open a new page on the market option. For converting SBD into Steem, we have to click on the buy Steem option, where we have to put the current Steem price and add the amount of SBD we want to convert into Steem.
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It will automatically calculate the buy Steem amount and click on the buy Steem option. It will proceed with your order. It will take sometimes a few seconds to complete the order or a few minutes. Check your wallet and Steem will be added.
Yes, I can. Just like SBD conversion into Steem same, we have to follow some steps to convert Steem into SBD but there is some difference. So, for converting Steem into SBD first there should be some Steem in your wallet.
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First login to your wallet by putting your steemit login key then click on the Steem icon which will show you on the top of the steemit wallet. It will show you further options again you have to click on the market option.
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On the market option, it will open a new page where is an option either to buy Steem or sell Steem. This time we want to sell Steem and get some SBD. So, we have to add the current price of Steem. Then add the amount of Steem you want to convert into SBD. Click on the Sell Steem option and it will confirm your order.
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Here I will add 0.5 Steem to convert into SBD. This will take sometimes a few seconds to fill the order or a few minutes, so don't worry about your orders. I received 0.039 SBD in my wallet within a few seconds. These were all steps to follow for Steem to SBD conversion. I hope it will be easy for you to convert SBD into Steem or Steem into SBD after following these steps.
You have explained each and everything with in detail. Your post is very informative to know the SBD print ratio. I have gone through your post.
You have an example of product in which you have mentioned that your ownership is 250 and you have to borrow 750. It's mean that 750 is your debt. You have clearly told about debt ownership ratio.
Wow...I didn't aware about the payouts in SBDs. After reading my own post , I researched on this topic. Then I came to know that Payout in the form of SBDS is only possible when SBD print rate is more than 50 or equal to 50. And debt ratio must be low than 10 percent. Becuse on 10 percent there will be no SBD printing. In other term SBD printing will be stop. As we facing now a days. Thank you for this beautiful and informative post. Good luck for the contest. If you have time then visit my post as well.
Thank you, friend!
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I appreciate you dear friend for taking out time to participate in this contest. Your entry is well written and you have added good efforts in explaining the various terms. You have also shown with clear screenshots how to convert Steem to SBD and SBD to Steem. Good luck to you.
Thank you so much for your kind words and appreciation. I am glad that you like my post and share your valuable comment. I wish you success for your participation too.
Alright, well done.
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This post has been upvoted through steemcurator07. We support quality posts anywhere and with any tags. Curated by: @chant
Thank you so much for your support.
Hi dear sister,
You have explained the topic very well, you have given a brief knowledge about the debit and ownership. Then you have explained difference between debit and ownership and how it effect on steem price you have clearly describe the trend of debt on steem and sbd, then you describe all the steps which are needed to convert steem into Sbd and Sbd into steem over all you very beautifully described all the parts of questions and it was really helpful for the new comers and for whom who get good knowledge of debit and ownership.
I wish you good luck
Thank you so much dear for your kind words & appreciation. I wish new users will get guide through this post and try to learn new things about crypto world. I wish you success for your post too.
You are welcome siso, yeah people may get knowledge from these posts to improve their information about debt and ownership.
Hi @ashkhan
You explained well about debt and ownership ratio in your post and how they effect on the price of Steem. What mechanism is going on at steemit to control the SBD printing for market and for rewards at steemit is explained in detail and effective manner. Best of luck for the contest
Thank you so much for your kind words and appreciation. I am glad that you like and I try to explain these questions in a simple and easy way that users can easily understand it.
Hi, @ashkhan
You have explained a very well about indebtedness and ownership in the steem network. And i gone through your post. It's really informative and helpful for me and i gain a lot of knowledge ans information through this post. You mentioned very easy formulas to control the debt/ownership relationship in steem blockchain. I really appreciate your mechanism that you do for this.
You also write a very simple about that how you change your sbd into steem and how you sell your steem by using your steemit wallet. It's really simple to understood from your post. Thank you so much for sharing another beautiful post with us. I wish you success dear on this contest.
Regards,
Faran Nabeel 🙏❤️
Thank you so much Faran for your valuable comment. I am glad that you gain some knowledge through my post even you also have a great knowledge about crypto world. I feel blessed that the reason of my posting has been completed as some users get knowledge through this and it was easy to understand by everyone. Success for your participation too.
It's my pleasure, 😊