Are bloggers earning 400% more due to SBD pumping to $6.8? Here is the explanation!
Crypto-market is not never meant to be ideal or rational. It is full of speculation, PnD (Pump and Dump), FUD and ponzi schemes. However, it is also hot-bed of innovations, entrepreneurship (job creation) and opportunity.
Steem backed Dollar (SBD) is pitched as stable currency that is designed to closely follow 1 USD, therefore the reward of a post supposed to closely match USD equivalent of reward (therefore $$$ sign is used, but it is actually SBD).
This is an interesting scenario: pumping of SBD has created huge opportunity to earn more by bloggers.
Here is the explanations.....
For example, if a blogger received $100 after curation from a post, he/she is supposed to receive $100 equivalent of SP (if 100% payment in SP selected), or $100 equivalent of 50% in SBD and 50% in SP. One will receive 50 SBD and 36 (50/1.39=36) STEEM. Market price of STEEM is set by the witnesses is $1.39.
Interestingly, market price is much higher for SBD currently. For example, according to CoinMarketCap one SBD is traded at $6.8 and one STEEM is traded at $1.6. Therefore, the $100 post will earn $400 (50x$6.8+36x1.6), that four time earning than as usual if SBD is simple 1 USD.
Since people can get more STEEM per SBD, they hypothetically should convert SBD to STEEM. Therefore, STEEM's demand against SBD should rise. On the other hand, STEEM's supply in the market should decrease. And finally, STEEM's price should increase.
However, SBD is denying any gravity or logic and getting higher which is creating HUGE profits for bloggers and some confusion too. This time confusion is better!
Thanks for reading.
@riseofth
Cryptominer since 2013, occasional trader and blogger
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www.kedjom-keku.com
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