What to do about current STEEM and SBD price? POWER UP!steemCreated with Sketch.

in #steem7 years ago (edited)

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It's confusing when both the cryptocurrencies powering the Steemit platform have considerable rises in recent months. Coupled with the current volatility of the Steem and SBD pair, it can be difficult to make a decisions. Namely: to power up or power down?

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On the one side you have the liquid-based Steem Dollars (SBD) that is currently maintaining a 800% gain in the past 3-months even after a 50% correction from the incredible highs of $16 this month.

Steem Dollars (SBD) - 1 month

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Steem Dollars (SBD) - 3 month

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On the other, the better known semi-liquid Steem (STEEM) is holding onto a 400% gain in the same period since starting a correction in the past three days, so far shaving off 30% of it's profit.

Steem (STEEM) - 1 month

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Steem (STEEM) - 3 month

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So what should you do?

When making a choice, remember the vast gap in the market caps between Steem and it's much saller counter-part Steem Dollars. The ratio is currently sitting at 1:36, which is enormous to say the least.

To put this into the wider crypto context, Steem's market cap is approximately $1.5 billion while Steem Dollars totals only around $40 million. The latter is ranked 297th largest crytpocurrencies, while the former is currently placed in 34th.

The underlying factor here to consider is the true value of the Steemit platform is in STEEM. Even though the charts in the short-term, at least in my opinion, presently favour SBD - in the longer-term - based on the current ratio, over 95% of the value of Steemit will be represented in Steem, not it's dollars.

It's time to start seeing Steem as shares of the platform with Steem Dollars as it's income that feeds Steemit's value.

If in doubt: HODL that Steem Power!

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PS -To avoid hypocrisy, this post reward is set to 100% Power Up
PPS - I also powered up with my remaining SBD.
Now your turn!

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definitely power up and hold Steem dollar. You rigth, ratio is currently sitting at 1:36 and it was at 3-4 some week ago. Steem dollar is undervalued right now

I think both are very undervalued!

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You have to imagine that powering up now is like what happens in the superhero picture, but over the course of months or years instead :p

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