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RE: SAY A PRAYER FOR SBD!!! - A WAKE UP CALL FOR MEMBERS OF THE NEWBIE RESTEEM INITIATIVE
Very good @ossyjay! That's the way to get the word out!!! Perfect, simply perfect :)
ps... I understand your point about SBD going down, but have no worries we actually benefit by it going down because we increase our power relative to others faster when that happens. I will explain if you like, but trust me I hope it goes down to $1... Some amazing things happen if that happens, have faith ;)
Thanks! @davemccoy
Yeah I heard something about decrease in SBD means increase in steem power
I would appreciate an explanation if you could and thanks for the resteem! :D
Ok, I will be happy to. It is complicated to explain so I will do it in steps.
The calculation for how we earn SP is based on the price of steem. The lower it goes in price, the more of it you get with each $1.00 of upvote. To give you an example of how the calculation works (simplified):
a $1.00 upvote will payout the following to you as the "author"
1.00 x 75% = 0.75 then divide by 2 for sbd and
divide by 2 and then also by the price of STEEM for the amount of SP
so here's the math:
1.00 x .75 = 0.75 /2 = 0.375 SBD
1.00 x .75 = 0.75/2 = 0.375/4.21 (current price of steem) = 0.089 SP
Before I explain anything further... Do you understand this? If so, then tell me how much you would get (in both SBD and STEEM) for the same $1.00 upvote if the price of STEEM went to $2.00
Yes I do! I see now that the lower the price of steem, the more the steem power that comes to you. So for STEEM price of $2.00, we would have:
1.00 x .75 = 0.75/2 = 0.375SBD
BUT FOR STEEM POWER, it would be:
1.00 x .75 = 0.75/2 = 0.375/2 = 0.1875 approx 0.188 SP!
Good perfect ossyjay...
Now what would you get if the price of STEEM plunged all the way down to $0.50? And if you would be so lucky as for that to happen, how much faster would you grow when you compare the $4.21 to the hypothetical $0.50 price of STEEM?
You're almost there... ;)
okay... if STEEM was at $0.50, I would get 0.75 SP on a $1.00 post. Now, comparing that with a 0.089 SP outcome when STEEM price was at $4.21, growth rate equals...
calculating...
wow... a whooping 842.7% increase in growth rate!
Tell me I'm right
$4.21 price of STEEM = 0.089 SP
1.00 x .75 = 0.75 /2 = 0.375 SBD
1.00 x .75 = 0.75/2 = 0.375/4.21 (current price of steem) = 0.089 SP
$0.50 price of STEEM = 0.75 SP
1.00 x .75 = 0.75 /2 = 0.375 SBD
1.00 x .75 = 0.75/2 = 0.375/0.50 (0.50 price of steem) = 0.75 SP
Yes you are exactly right.
Now would you like the price to go higher or lower?
Aww yes!.....definitely lower haha!
so when you are worth millions of dollars of steem then maybe you will want it to go up. but until then, you will want to get as much as possible so you always get more if it is lower.
did I help you understand that?