What to do with SBD?
Since I did enter the Steem blockchain the ratio between Steem and SBD was always between 0.9 and 1.1.
But now that Steem did break out and it appears that SBD is left behind, the ratio is increasing rapidly.
So what should we do with the SBD we are holding in out wallets!
Currently at the moment of writing this article, the ratio is 1.20. This means that if you want to sell your SBD on the internal market for steem, 1 steem will cost you 1.20 SBD.
The payout of a post
As we all know that $value of a post is pay-out in Steem Power and SBD. During periods in which the steem value is extremely low, also Steem Power can be added.
In normal circomstances, 50% is payed out in Steem Power and the other 50% is paid out in SBD.
The total value of the post is $1.66. So $0.83 is converted into Steem Power (equally to Steem). The other 50% is converted to SBD. So $0.83 is converted to 0.83 SBD.
Should we still convert the SBD to Steem?
It all depends what you do want to do with it.
In my case, because I am still a red fish, it is important to keep increasing my steem power. The easiest way to do this to convert my SBD to Steem and after that by powering up!
We have to remind ourselves that the initial value of SBD was pegged to USD. But because this is not the case anymore, it is still profitable to convert it. The 0.83 SBD represents namely:
We have to remind ourselves that SBD was originally pegged to USD. So every time the SBD is above $1, we are profiting from the situation!
Other things that you could do!
- Use voting bots. While I don’t want to advertise this, it is a possibilty. It will get you more visibility and for some strange reasons also more followers. And since the busy.pay post we know that this is also important!
- Saving up SBD and wait until the ratio is lower so that you will get more Steem for a SBD. But I don't see this happening very soon! Steem is namely listed on a lot more exchanges than SBD. So there is much more exposure and demand for Steem than for SBD.
- Bring it to the exchanges with does have SBD listed and swap it to other coins or fiat money!
What we certainly must not do!
It is still not wise to choose the option to have the pay-out of the post in 100% Steem Power.
Let's take a look at the example off above. With the 50% SP and 50% steem option, the total value is, 0.83SBD and 0.20SP. After conversion of the SBD into Steem, it is 0.888 Steem or Steem Power.
If we would go for the 100% SP payout, we only would have $1.66 converted to Steem, which would be around 0.4 Steem.
So although the ratio between Steem and SBD is rather high compared to the last months, it is still profitable to take the 50%/50% option.
The 100% Steem Power option should only be taken when the value of SBD is below $1.
What are you doing with your SBD?
I would like to know! But as long as you have plans to power up and need the Steem Power, I would still continue to bring them to the internal market!
If you do have enough steem power, that it is maybe better to save them up and wait until the ratio delivers more Steem, but be warned that the 1.2 ratio maybe isn't the bottom!
Keep the faith,
Peter
I am using all my SBD to tip bots. You still have to do that to promote your article...
Made a stupid error with this post! When taking the screenshot to show the payout options, I did forget to switch it back to 50/50.
I know you do. It is like investing in your account!
Very good post. You did a really good job writing this up. I think it is a good sign for the platform that SBD is lower than steem. Hopefully we have a another nice steem price rally in May.
Lets hope so! Why do you consider it a good sign?
Because it means people are more bullish on steem. I think steem should have a higher value than sbd. Steem is basically shares in the "company" whereas SBD's are "just" the currency. If steem every really takes off I think the SBD's will have to be way lower than steem. They will probably even need to be close to $1 in value whereas I think steem could potentially go to $1000 or higher.
Lets hope this does happen at one time! Would be glad with all the Steem I am saving :)
The only thing I would add is that SBD is supposed to be pegged to the USD, the idea was to provide a safe haven for users during volatility, but that peg seems to have been broken for some time.
Thx, added the info to the post!
I strongly believe SBD will eventually go back to around 1$, right now I see everything above as overpriced and but Steem every time I get some SBD which pretty much comes down to cost averaging. I'm not gambling and keep a lot of SBD in hope the price goes up.
I am on the same page. Do want to increase my steem power as much as possible. So powering up, all that I can!
Cheers Peter!
There is a variable % of curation rewards to knock off the total prior to the calculations above. 15-20% seems to work in many cases.
Personally, I'm powering up what I can and using the rest for bills. As the internal marker is free, it could be an idea to power up in stages - but if you think STEEM will continue to run away from SBD then asap is the choice!
Hi Asher,
I know but I did not want to make it to complicated.
I have no clue if Steem will keeps on running away but I guess it has more change to do so than that SBD will catch up!
How was the trip to England? Did it give you any answers? Hope it did!
Since I'm powering up constantly, I just convert it to steem and power up.
The numbers we are talking here are small and I don't really care about it. If I had some significant amount of sbd, I'd have to think hard about it. Will it go back to 0.9-1.1 or will it drift further apart... Wait or sell now? It's a though call to make.
Just like you I am trying to get as much SP as I can and as fast as I can!
This is a good time to increase steem power. I post, comment and invest SBD to promote my post using bots.
Steem is undervalued. It will go up soon as it gets more exposure day by day and SMT & hardfork 20 are on the way.
Thank you @fullcoverbetting for sharing this.
Followed you!
I send it to Binance and trade it for BTC to buy other cryptos.
So the steem payout stays at the blockchain and the SBD is sold?
That could work if I do reach minnow status.
It is better, for a long-term investment, to just use the internal market to turn the SBD into STEEM and then into Steem POWER. The mower Steem POWER you have, the bigger your upvote is and the better you can pay yourself.
However, the SBD iou is in your Wallet, so you are just selling the IOU to someone else. If the top witnesses did their job correctly, SBD would never get over $1 and they would put the convert option back on the Wallet. Since nobody is buying the SBD, I always assumed that the convert option would actually destroy the SBD iou.
I used my SBD to buy bots votes, thereby giving my content more exposure and gaining more followers gradually which is good for a longer term prospective. And also remember that when you buy votes using voting bots, you still earn steem power and steem dollar.
Which gradually increased your steem power SP and you still have SBD to invest in buying more votes. Your return on investment is limitless withSBD @fullcoverbetting
Thx @obest.
I did buy votes in the past but don’t do it that much anymore. Most of the time is has a negative ROI for me.
I've just been saving mine and letting it build. Got up around 35 SBD and found some things I wanted to do. I funded a friend some @steembasicincome shares, bought some silver, and powered up a bit. Now I'm going to resume the same plan. Eventually I'll start transferring and trading to other currencies as well, as I plan to get and start using a coinbase shift card.
SBD is definitely a fun digital asset to learn about. If it ever goes below $1, we'll be able to put it in savings and earn interest on it. What a notion!
Sound like a solid plan. Maybe I should start accumulating more. But first I wo want to reach 500SP! Everything on steem has to bow for this goal!
Yeah, it would be cool to be at the fvl. Perhaps I should adjust my goals. Spending this stuff and using it is just so cool to me.
I can understand because the ultimate reward of being on the steem blockchain is to be able to purchase some goodies! Nothing wrong with that!
Just commented on your post. Reminded me that you were on the first that I did sponsor with an SBI :)
Tyfys! It's a good program. Did I hear about it from you? I've quite forgotten who first introduced me to it. I owe them some shares.
Don't worry about it. It was a contest and you deserved the share back then :)
It was a price with no strings attached!