Why I Powered Up
I Powered up. Thanks to the over valued Steem dollar, or the undervalued Steem token I came into some Steem. Dumping my dollars as the price came down, I was expecting it to come down to about one dollar each but no cigar.
The Steem dollar, which is supposed to be worth a dollar of Steem, went up from $2 USD to $14 USD and came back down to $10.50 USD and right now it is trading at $11 USD. We are lacking mechanisms of keeping the Steem dollar down. There really is no mechanism for keeping the Steem dollar when it is over a dollar. I don't really mind if I buy steem dollars at 1 USD each and then find they are 11 USD each. However, I am concerned if the reverse shall happen. Suppose, I have these tokens that are worth this much today, and they go back down to the same value.
Some of you might be thinking, apply the same argument to Bitcoin, or Ethereum. And well, that's right, but until I have seen Steem dollars at this level for three months, I have to assume there will be a correction happening soon. Besides, Steem dollars are meant to be the value of a U.S. dollar or some developers might decide we should correct the Steem dollar and introduce some mechanism to bring it back down to the level of a U.S. dollar.
So, I decided to dump all of my Steem dollars. I dumped them around 7 Steem / Dollar and with a Steem trading at 1.71 USD on Bittrex. Maybe I got less than $14/Dollar that way, but I didn't need to go through Bitcoin in order to get into Steem. I used the internal market and I figured that was close enough. I got out of dollars completely and bought Steem.
So I had some Steem and my 100% vote was worht about two cents. It was fun because of the old saying of putting in my "two cents" worth. I took the Steem I got from the trade and I powered up. Now my 100% voting power is worth six cents. But these are in Steem Dollars, so in reality a full power 100% vote rewarded should be 0.30 USD. Click here for why.
Dash XjzjT4mr4f7T3E8G9jQQzozTgA2J1ehMkV
LTC LLXj1ZPQPaBA1LFtoU1Gkvu5ZrxYzeLGKt
BitcoinCash 1KVqnW7wZwn2cWbrXmSxsrzqYVC5Wj836u
Bitcoin 1Q1WX5gVPKxJKoQXF6pNNZmstWLR87ityw (too expensive to use for tips)
I liked what you had to say about Powering Up... I'm still a little confused about Steem Power and Steem Dollar... the Steem Power is worth $1.71 and the Steem Dollar is worth about $11.00...??? So, I take it, you're afraid that the Steem Dollar will fall, and if so, it will have no effect on the Steem Power...???
@pocketechange
Yes. I am afraid the dollar will fall and yes Steem will go down as well but whereas Sfeem has doubled in price the Steem dollar has quintupled in price. I am expecting a harder correction in the dollar. Of course it is prudent to trade some for nubits or bitUSD. I should do that next week.
Why do you think the Steem Power only Doubled...???
@pocketechange
Well I remember painfully buying when it was around a dollar and then fell below that recently. Now it's around two. It is not going to fall by a factor of five to 40¢ now. If it does I have some nubits to give myself a 1000 SP
I recently powered up, also. Being new here, I had to read up a little bit to understand the mechanics behind doing so, but I think I'll catch on in a few weeks. I have been doing a little better with content and it looks like it may actually pay off soon. I am hoping to see Steemit become increasingly valuable and help build this community! I am excited to see what the future brings.
I'm learning every day about steemit....post like yours help!
I did it too! I am at my greatest steem power ever now so I can earn the maximum amount of return on my steem. The change in prices are nice, move a decimal point to the right on your payouts for the real price now :)
It makes one realize how deflated our real world currency actually is if it so easily tradable for our digital content.
Actually Steem dollars are valued at $1 US of Steem when they split the reward. So, say your payout is supposedly $11.70, 15% of that, about 1.70, goes to curators, $5 is converted to Steem Power at the rate of 1 USD to 1 SBD and another 5 SBD goes to you without conversion. So, you get about 5 Usd worth of Steem and $5 Steem dollars. So your rewardjs about 6x, not 10x.
Thanks for the most detailed calculation of this I have read so far. I was estimating but you are right on the money.
That is so neat. steam dollars is a mutant lol.