Wow! I made a Newbie Mistake

in #sbd6 years ago

I'm still learning how to properly use Steemit and I've just realised I've made a newbie mistake.

I chose 100% Steem Power payout for many of my posts because I'm more interested in building my position on the platform with interesting quality content than generating short term returns.

However I see that because a Steem Dollar (SBD) is worth way more than a $1 (over $3) then its better to choose the default rewards.

Reading more about it I see that SBD has been way above $US1 for 5 months.

What is the Steem Community doing about this?

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Nothing needs to be done about it. Free markets will decide the value of SBD and trying to control it isn't healthy IMO. Law of unintended consequences will come into play anytime you try to mess with the free markets.

Just leave it 50/50 and then use your SBD to power up. In the end you get just as much powering up this way as if it was the other way around. The lower SP portion just offsets the higher SBD value and makes it so you gain the same total amount. Nothing is lost.

Thanks @darkhorse for your explanation and also your upvotes to $0.03. Its nice to not have good content be dust.
I agree that there is no point in trying to interfere in the free market but the Steem Dollar is obviously not serving its intended purpose as a Tether like coin.
One thing I didn't understand from your comment above is you seem to be saying that it I didn't make a mistake to pick 100%. But when I check the value of my earlier 50/50 payouts I'm getting a lot more overall value on the SBD side.
Wouldn't it be better to trade that SBD to STEEM on the open market and then move it back into wallet to power up?

No pick 50/50 for sure.

At 50/50 the system is just making sure you aren't getting to many rewards from the intended amount due to the higher SBD value. If SBD was $1 then your SP would be higher but the fiat value of the total rewards would be the same. You only loose if you choose 100% SP so never click this option.

I saw your other post about cryptocurrencies and was just about to mention the fact that you were using 100% powerup. Happy you figured it out. Unfortunately, there are many people still not aware of this and missing out big time in profits. With SBD at the current levels, the overall profit is around 100% better with 50/50.

On Steemit they could potentially remove this option and only allow two options, payout, or no payout. They disabled a conversion function a few months back which was equally disadvantageous for the users, so they could do the same here.

Thanks Daniel. I'm going to just did write a post about newbie mistakes to avoid, having made a few of them :-)

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