Steem & SBD reaching Parity
Although Steem and SBD are reaching a 1:1 ratio, SBD is still considered overvalued by 5.75x, at least in my opinion. Others may have different thought on SBD valuations, but I see Steem Dollars to only have a value of $1 due to the inner mechanics of the token.
- Feel free to comment your view on SBD
SBD Phenomenon
Basically I have been bearish on overpriced SBD as I expect the value to go back $1 any day, in a sudden and violent - car flying off cliff and exploding moment. Then again, I have been expecting this for well over a month now and It just hasn't happened soo....
Anyways, even though I see it as a phenomenon, I don't want it to end. I would love to have SBD stay at $5 or even better lets have this rally to $100! This high SBD price is great for posting rewards, but even better, building up SteemPower.
Unfortunately, as Steem gets closer to parity with SBD the building up of SteemPower becomes more difficult. The posting rewards are still more than what the posting shows so the rewards are still great but 3 weeks ago, 1 SBD = 5 Steem and today it is nearly 1:1. One could really gain a lot of power around here if they were powering up all there SBD posting rewards!
Example
A posting shows a payout of $10 after curators
(This is 10.68, lets just pretend it is an even $10)
That payout is an approximate dollar value split up between the 2 tokens: Steem/SBD
- $5 in steem - directly powered up = 0.86 SP
- $5 SBD - valued at $1 = 5 SBD
At today's ratio of 1:1, the total SteemPower you could get from this post after converting the SBD comes to ~5.86 SP.
At the ratio of 1:5 about 3 weeks ago, the total SteemPower you could get after converting becomes a huge 25.86SP!
In both scenerios the posting is valued much more than what is shown, but as you can see there is a 5x difference in potential SteemPower.
If SBD goes back down to $1 - then we will see a ratio of 6SBD : 1 Steem. Using the same above example, a $10 payout would then give less than 2 SteemPower after convertion!
The bottom line boils down to:
Unless your prepared to make a significant outside investment, it will become increasingly difficult to build up SteemPower with posting rewards alone.
If your confident in the future of Steemit, now would be the time to be powering up those posting rewards before it's too late!
What are your thoughts on the current situation with Steem/SBD?
~Keep on - Steemin' on
@generation.easy
Bitcoin & Silver Fanatic
I’ve been overly enjoying SBD being overvalue for so long. It’s like finding out you got an unexpected bonus on your paycheck! I did not expect it to last this long.
For whatever reason people keep 100% powering up their posts as SBD price drops and SP increases. We need such a drop in SBD price before that is even a thing!
Will feel rather depressing once its back at its $1 peg lol.
Going back to $1 would be sad...
Im happy with the bonus, hopefully it never ends.
There are some people trying it crash it back to $1 the system was never made for it to be valued over.
So while I hope it never ends I could see them wanting to creation systems to push it back down eventually if it does not happen by people selling it.. Unless there going be something major that will use SBD itself which would make all of us look like fools for selling it so cheap!
I really dont understand the problem with it being overvalued tho.
The printing of SBD isnt effected, and niether is the steem rate.
The relative debt from sbd is still the same even if its valued at $1000. Its just the inner mechanics will only give $1 valuation if you decide to convert to steem with internal methods...
I almost think the original idea was to have very minnimal sbd circulating because everyone would convert internally to steem.
Anyways, i dont get it being over value, but I sure do love it. I would like to see steem prices take a step back for awhile tho.
I’m going word it like this.
Overvalued SBD allows certain people to amass massive amounts of Steem cheaply by exchanging it and granting them more then they would normally be able to afforded. This changes the power struggle/ political dynamics of Steemit overtime.
Naturally, this makes some people unhappy.
Me personally I benefit greatly from it so I hope it lasts forever!
Here's hoping it does fall and does have another huge bump, but it was certainly good while it lasted.
Id be happy with another nice bump in SBD ;)
I've been trying to power up all my rewards at the moment converting all my SBD to Steem since in the long run I believe it will definitely be worth it.
Let's see how long this 1:1 ratio will last since I'm going to try and maximise the worst of my SBD as much as I can haha
I wish i would have stuck to that same plan last year... just power up everything!
Was much easier to get a large stack of SP back then... gets tougher each move up
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