RE: STEEM Now Worth More Than SBD... Should I Buy SBD?
I don't fully know the intricacies of all this.
But given that the design of Steemit was that SBD should be backed by the dollar, and should be worth about $1, I understand the movers and shakers here WANT SBD to go back down to $1. While they want Steem to rise. So as long as SBD is worth more than $1, it's worthwhile doing 50 / 50 then converting to Steem Power (if your aim is to grow your SP). But if SBD goes back to $1, there will be no benefit in that.
However, if you have liquid Steem and want to play with it, buying SBD would be banking on it going back to being worth more than Steem. Which it may do, but it's not in Steemit's interests for it to do that. I think.
Personally, now that it's lower than Steem, I'm still taking 50/50 but getting it converted to SP regularly. I don't think I would like to bet on it going back higher than Steem.
Not sure if that even makes sense, let alone answers your question, but that's my uneducated thoughts on it. :-)
Hi, Deb,
Thanks for your thorough and thoughtful comments.
That's probably my biggest problem, namely, even though I have heard that to be true, I don't really understand the mechanisms that would drive things that way, and I've seen it go wildly in the other direction.
My aim is to grow the total value of my account, and yes, especially Steem Power. But watching the relative value of STEEM and SBD waffle back and forth (while not really understanding why) has caused me to wonder about the possibility of trading back and forth between the two, thus sort of "climbing the ladder" as I see one or the other relatively up or down.
Thanks alot for sharing your thoughts! :D
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Hey @creatr. the way I understand it, one mechanism is the creation of SBD. The witnesses have been issuing more SBD than Steem on the payout in order to drive the cost down, but this hasn't really had the effect that they thought it would (or maybe it has).
One other aspect to consider is the use of your SteemPower while you wait for the wave to increase. I mean it probably won't be much, but still.
Hi, Moe!
Thanks for the added insights. :D
I have so many things going on in my life these days, it's hard to keep track of them all and still learn about the practical ins and outs of using and trading crypto! :O
Hope you're doing well. I also hope to get around to more poetry one of these days, and I want you to know that (despite my "absence") I appreciate your encouragement in that realm. ;)
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I actually wrote on another comment with one of your fans that you've helped to encourage me in the past, so I'm happy to repay the favor. I was actually on a role for little bit, posting at least once a day for a while, but I hit a roadblock on one piece and haven't been able to get past it. It's been a bit of a blur honestly, and I'll probably be going back over those pieces to see what the hell I wrote, because I was a bit surprised by an excerpt that I didn't remember writing, LOL.
I think it's in my nature to analyze things that interest me. So I try to pick things up as I browse Steemit. In fact, I recently learned the actual code for reputation and the fact that the top 20 witnesses are making around 200-500k annually according to current prices (according to @riverhead). I hope you have success in whatever you decide to do.
Could you point me in the direction of that reputation code? I've often wondered exactly how that works, and why my reputation seems to be utterly stuck at 69 while my peers' reputations climb... ;)
Thanks, Moe. :D
Yep, I was going to, but it took me a while to find out where I saw it. Here is the link to the actual code. I found it via a post from @arcange where he lays it out in layman's terms. I plan on doing a post about the myths of the reputation.
Thanks a lot, Moe.
I guess I need to hang out with some high-rep whales...
But I guess I've never really been one for toadying up to get things?
Hmmm, quite a dilemma. ;)
Nope. Just whales in general. The rep only matters when they downvote you. All upvotes matter from anyone as long as their rep isn't negative. The effect of the upvote on reputation is proportional to the amount of SP behind the upvote.
For example, if I had 3,000,000 SP, an upvote from me (rep 54) would have a greater effect on your rep than an upvote from @papa-pepper (rep 77) with approx. 15k SP.
Hahaha that was me.... I'm more of a fan of @creatr in real life... Lol
His posts are great but his hugs are better 😊