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RE: It's time to SELL SBD instead of powering up
thanks for the post @happyme. I was wondering why my 50/50 split looked good - until - payout .
I'm still learning. So there's the open market value of Steem, around $7 USD currently. then there's an internal market for Steem Power, worth $??? usd, where do I find that info?
and then there's SBD that's worth around $9 usd, is that an internal market valuation too, that is, it is only exchanged inside Steemit?
I can see that I still have lots to learn
Thanks for reading and responding to my article.
If you click the little arrow next to your SBD amount in your wallet, a menu pops out and there is a link that takes you to the internal market where you can see what SBD and Steem are trading for (and you can make trades there too). Steem and SP are essentially the same thing, so the price is the same. The difference is that Steem is liquid (available for use immediately) and will not add any value to your out-going votes. Steem Power is locked in (you have to power down to get your steem out over a year [I think that's the timeframe] in weekly increments) so you can't immediately access it and it does add value to your outgoing vote value.
Steem was supposed to be the actual token, whereas the SBD was intended to have a constant value of close to one US dollar so as to make it easy to use as a currency. (You don't want to be adjusting the price of your merchandise every hour or so.) However, the market is unpredictable and the SBD has become way more valuable than anticipated. Both SBD and Steem are traded on the open market.
The internal market is for trading between Steem and SBD and as far as I can tell is a bit slow to respond to fluctuations on the open market.
Steem and SP are simply the same token moved within your wallet. If you are ever hacked, you can lose your SBD and your liquid Steem, but it will take a week for the hacker to get the first bit of anything that is put into SP. That is a neat security feature! It gives you 7 days to reclaim your account.
The internal market doesn't require you to have anything other than your user account and your active key. The external market requires that you provide information about yourself and you need to open a new account with whomever you are using as an exchange. On the open market you can convert between the cryptocurrencies and fiat money using your bank. Having a hardware or software wallet is also a good idea for when you use the open market. It is not advised to leave your cryptocurrencies with the exchanges, so you need to have the appropriate wallet to store the type of cryptocurrency you plan to use. That's why I only have Steem; I don't need my own wallet. Steem makes it so simple to own a cryptocurrency. It's only when I want to withdraw my Steem to fiat that I would ever need to use an external exchange. I'm hoping that by the time I'm ready to pull anything out, Steem is a major currency and I can simply buy everything I need directly with Steem.
If I'm not mistaken, the price of Steem used to calculate your rewards is a 3-day average of the external market price.
wow! thanks for the info - for sure it will take me several reads to absorb all this - very much appreciated.
Many thanks for your good intentions with the drotto vote. According to my calculations it cost you 90 cents to send me 11 cents.
At $9/SBD, your 0.10 SBD is worth 90 cents. My upvote earned
11 cents, from which I will lose 25% to curation awards.
The only winner there is drotto! You would have made a much greater contribution by sending the tip to me directly. I don't understand why people use these nasty bots that just suck up the reward pool and leave less for everyone else. I and a lot of others think this platform would be a lot better off if people simply stopped using vote bots. Those bots are owned by those with lots of SP and they get richer while everyone else suffers.
Sorry for the rant, but it bothers me to see people getting ripped off like that.
thanks, I appreciate your rant. I was looking for a way to say 'thanks' for your very excellent information and thought I'd give Dr Otto a try, turns out, like you said, that did not turn out very well.
I studied for 3 weeks solid, 14 to 16 hours per day when I first started here. I made lots of mistakes that cost me, so I learned the hard way. I'm happy to help others not make the same mistakes I made. Things keep changing at each hard fork, so there will always be more to learn. Not to mention all the applications that are being written to run on top of Steemit.