Quick Thought On SBD vs STEEM
How Do You Play It?
SBD stands for Steem Blockchain Dollars and is similar to convertible debt. The actual "game" value of 1 SBD = 1 USD.
The SBDs also carry a "market" value where people are speculating that they will continue to rise, as well as use for advertising money, among other things. It is my opinion that going through bad times econimically for the community, the SBD would likely fall lower than Steem itself. But in times of abundance, the SBD will soar to higher heights than Steem.
So...it would likely make sense to be selling the SBD you're earning through post payouts to purchase Steem Power when the price of SBD is above Steem. This will give you a generous conversion into steem power.
The other logical solution when SBD is higher then Steem, is to be cashing out of and into your current fiat to pay some bills, or to invest in other crypto currencies such as Bitcoin!
When the SBD price is lower than Steem, you should use that as an opportunity to purchase some discounted SBDs if you continue to believe in the long-term growth of the community!
How do you plan to play SBD vs Steem as the prices continue to swing one on top of the other?
Thanks for reading and let me know what you think!
I am going to be holding onto my SBD for now. I also use a lot of it to bid on upvotes through voting bots. I find this is a very great way to add value to your posts and often double up on your SBD while adding to your SP. I use @upme, @buildawwhale and @randowhale (when he's not sleeping). Also the @resteem.bot is a great use of SBD.
Do you think you can break it down more when it comes to using bid bots in order to increase your vote rewards and getting more SBD from your investment? I am still having a little trouble with wrapping my head around that!
Well it is pretty simple, you just send some SBD to the bot with the URL of the post you want upvoted in the memo. Usually the upvote the bot gives you is worth twice as much as the SBD you sent it. It is however a little bit of a gamble as sometimes it only returns about the same amount of value.
I appreciate the replies guys! The biggest thing I have a concern about or see is that it seems majority of the bid bots, your always gonna lose unless someone doesn't come in and bid with a lot of SBD. I see the ROI% always for the last round and its always negative. I understand for the exposure, but seems like it can drain your wallet, if you did this primarily? Or am I just not knowing the best tips and tricks for using these bots!
@brettcalloway @elite.skeete
@clasicktk Yes most are losing some percentage each round. Based on what I’m seeing, you would have to spend larger amounts, like 50-200 SBD to try and get an actual ROI when you hit the trending tab and pick up some organic support! You’re article would have to be great and you have to pick the bid bots with the highest vote amount. The small votes 0.1-1 SBD are getting burned without much hope of a return. Kinda like go big or go home!! Too much risk for me at this point considering my articles aren’t that great and I don’t have that kind of SBD laying around. I would say just sell 50% of your SBD each week for Bitcoin then take 25% in fiat and the last 25% to be invested in Steem Power if SBD price higher than STEEM. If SBD price lower than STEEM then just hold that portion of your SBD until higher than STEEM. This is my personal strategy. Definitely not going to be using bid bots until I’m ready to drop a 200 SBD bomb!!
Most of the time the Bots that I am using return my SBD and also leave me with a little SP bonus to go with it. Though sometimes I only break even give or take. There are some times when I clearly get a vote worth more than my investment, sometimes doubling my SBD investment with a Steem bonus as well.
Hey @clasicktv Check https://steembottracker.com/ This site will give you a bit bot market tracking info. It's pretty cool. You can see the bets go down live. Some do catch a return, but a lot of them take a lose off the top and you have to regain by getting some organic votes as well. Interesting to watch for sure!
I've always thought SBD meant Steem Backed Dollar :)
Hey @jlordc That's what I thought as well until I reread the Whitepaper. You can check it out here: https://steem.io/SteemWhitePaper.pdf or check the screen shot below.
First sentence, last paragraph. I've heard both ways, I just went with the whitepaper.
It does :)
Thanks for the advice. Will implement!
I will hodl my SBD! By the way i just did a post were i covered the pros and cons of hodling and trading. Please check it out!
Cool brother! How long do you hold it? Are you planning to seek it for anything in the future? Thanks, I’ll check out the post. You should drop the link to make it easier for people to see it. Maybe get a few more eyeballs!
Steem power – Also known as SP in short, is basically a token symbolizing how much influence you have inside the Steemit platform. If you have a lot of SP your upvotes will count more and will award different authors SP and Steem dollars as well.