¡Steemnomics 101! Yeah! a few loose tidbits before a contest I'll launch in short after this post.

in newsteem •  2 months ago  (edited)

¿Wanna play the role of a Math Clairvoyant?

SMTs

¿Did you know once upon a time when The Steem Blockchain boasted more actual transactions a day than Bitcoin and Ethereum combined?

Are you looking for some investment insight that is just as likely to lead you to financial freedom as if you called that number scribbled on your local public toilet stall door and asked for trading tips?

¿Yes? Ok, then start READING!!

"SMTs are coming so you'll do better if you keep STEEM. Since SMTs can be bought with no other currency than Steem"

Therefore, we basically only need one platform adopting SMTs to skyrocket up the popularity charts to succeed, so with the single currency Steem, you're really already hedging your bets.

What is the difference between STEEM, Steem Power, and Steem Dollars?

  • STEEM - STEEM is the base liquid currency token in the platform. STEEM can be powered up into Steem Power, traded for Steem Dollars, or transferred to other accounts. It is a cryptocurrency token, similar to bitcoin.
  • Steem Power - Steem Power (abbreviated SP) is a measurement of how much influence an user has in the Steem network. The more Steem Power an user holds, the more they can influence the value of their votes on posts and comments. Steem Power is less liquid. If an user wishes to “Power Down” SP, they will receive equal distributions of the STEEM weekly, over a 13 weeks period. For instance, Powering Down is a process of withdrawing your Steem Power from the vesting storage to your liquid storage, in 13 equal weekly payments. So if you have 13,000 Steem Power and start powering down, you will get, each week, into your Steem wallet, 1000 Steem, for 13 weeks in a row.
  • Steem Dollars - Steem Dollars (commonly abbreviated SBD) are liquid stable-value currency tokens designed to be pegged to $1 USD. Steem Dollars can be traded with STEEM, and transferred to other accounts for commerce or exchange. Steem Dollars may also be converted into STEEM via a process that takes 3.5 days.

Ok, let focus on SBDs from now on. ¿Can we?

Creation of SBD:
The 'only' and unique way to create more SBDs is through the content creation. The only source of SBDs is Author Rewards. The authors receive their payments in STEEM Power (SP) and Steem Dollar (SBD), and they can select the percentage of each one, with 50% of steem power as the minimum. The first payouts were made on July 4th, 2016.

When SBD is created for author rewards, it does not create 'actual' STEEM. It creates 'virtual' STEEM, which means that it is STEEM that will be created at some point in the future (when an user converts it to STEEM).

But has this always been the case? Uhm, keep reading!!

Remember the term "supply and demand" from economics 101?
That term refers to the principle that prices aren't chosen arbitrarily; rather, they are set by two entities and quantities called "supply" and "demand." The more supply there is of something, the lower its price; at the same time, the more demand there is of something, the higher its price.

"That is: supply, demand, and price are three inter-dependent variables"

If the supply of SBD is too "small", its price could be easily manipulated by powerful players, with unexpected results.

There was a time when a korean exchange who all of the sudden listed Steem and SBD in their exchange and bought a lot of SBD created a massive pump. It has been heard it was this Korean Exchange which last time bumped the price to $15,00 in one fell swoop... Currently, they'll prolly require double the capital they used last time to pull off that same feat!

And then, a few organized groups of whales online in the cryptoverse, for instance FairPumps & Skymoonsignal, did their fair bit too. Instantly, basically in a period of 24hrs, we got a $22,34 USD ATH SBD.

CMC

Today Oct. 19, 2019. SBD has a market cap of barely $5.081.656 USD ~ 630 BTC. So, it can be piss easy that even a single individual with deep pockets can double it up overnight if he/she chooses to put in a shitload of money into SBD. But as the number of SBDs grow, you'll need more and more capital to bump the price!

Increasing SBD also increases the debt-to-ownership ratio. SBD is not backed by real USD dollars, but by what's supposed to be "$1,00 USD worth of STEEM".
Steem Dollars is the digital asset that was supposed to be tied to the US dollar by algorithm-based interventions, which makes the understanding of this whole mechanism a bit difficult.

Ugh, uhm, well, alright, ok. then...

¿Were Does The Money Come From?

Oh! no worries chum. Just limber up your index finger and...

Click & Crunch The Numbers NOW!!

Calculus

Because after the almighty EIP. And in view that along these last days we all are starting to see how so many whales & big STEEM stakeholders are yapping about remove or drastically reduce the global rewards pool, get rid of our neaty SBDs to try to stop 'Tha Inflation' and/or add a passive inflation source for stakeholders instead.

I'm gonna left this post until here so you can arrive to some conclusions by yourself on what is going on right now backstage.

LaST but not LeaST...

"Steem Dollar (SBD) Pump Explanation"

I just hope that after having READ and 'CURATED' this post carefully and thoroughly this far. You may have now a few nuts & bolts to screw around in your head in order to win the interesting "Math Clairvoyant Contest" I'm gonna launch in the next days. }:)

Steem On!! 'Curators'...

Note: As usual, doing click on all the pictures in this post will lead you to complementary info.

Leave a comment. Share your experiences and feedback. ¡Be part of the conversation!

«««-$-»»»

"Follows, Comments, Resteems & Upvotes will be highly appreciated"

Cranky Gandalf

Cheers!!

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fckign bots!

Great post. Interesting tidbits about SBD.

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