Never Hold on to SBD! They Are Being Devalued At 583.8% Annually (48.65% Per Month).
The Price of a Coin
The price of a coin is determined very simply through the following equation.
For this post we will consider the price, market capitalization and inflation of Steem and Steem Based Dollars (SBD) and for clarity I will calculate the current price for both using the above equation.
Steem
Based on the market capitalization and circulation supply given by Coin Market Cap (CMC) the price can be calculated as seen below.
SBD
Based on the market capitalization and circulation supply given by Coin Market Cap (CMC) the price can be calculated as seen below.
My Concern
For a comparison the annual inflation rate for Steem is determined first after which the inflation rate for SBD is calculated.
Steem Inflation Rate
If we consider the market data for Steem from Mid December 2017 and only look at the price for a market capitalization of US$800mil (follow the US$800mil line in the graphs below) we can determine the increase in circulation supply and the inflation on the coin per annum.
The points selected are as follows (Courtesy of Coin Market Cap):
Point 1
Point 2
Point 3
Point 4
Point 5
Summary of Steem From Mid December 2017 to Date.
The annual inflation rate for Steem can then be determined as seen in the below table which equates to 10.0%.
SBD Inflation Rate
In order to determine the inflation rate of SBD the same methodology as above is followed but here we consider the market capitalization of US$40mil (follow the US$40mil line in the graphs below) we can determine the increase in circulation supply and the inflation on the coin per annum.
The points selected are as follows (Courtesy of Coin Market Cap):
Point 1
Point 2
Point 3
Point 4
Point 5
Point 6
Summary of SBD From Mid December 2017 to Date.
The annual inflation on SBD can then be determined as seen in the below table which equates to 583.8%. This is a monthly inflation rate of 48.65%.
Conclusion
Never hold on to SBD as the inflation on your SBD's in your wallet is 4 times higher PER MONTH than steem for an entire year. If you are holding on to SBD's it is being devalued at an incredible rate!
Source
Consider donating should this post have been of value:
BTC - 18atWSWrN2bDxNWeoc3Q68coQBEk69FvUY
ETH - 0x71844057eec156843af64b2b8021daf3615b0e06
LTC - LPji8igXQ1cqjhZDFZUYgEWvVshGVi4AA1
edit: After our exchange I read it more carefully and found a glaring error in your calculation of monthly inflation rate.
Assuming correctness of your 583.8% annual inflation rate which I doubt, partially because of the revelation I am about to show, and partially because at times Steem is created instead of SBD which skews both quantities far more towards a relative scarcity of SBD,
You concluded this:
By dividing annual inflation rate by 12, which is at best is an unwitting mathematical error, because a 583.8% rate in percentages is a 6.838 annual ratio of which you should have taken the 12th root (raise by 1/12 exponent) and get to slightly above 1.17 which means slightly over 17% monthly inflation rate which is still a lot, bot nowhere near your advertised result.
My original comment which I still do not regret was:
The demand for SBD grows with the quantity of people needing it, and it grows exponentially too, assuming growth rate of STEEM population equal to growth rate of world population.
STEEM is still young, and its growth is actually faster.
It does not mean that SBD should be hoarded, but it helps explain the contradiction between reality and your expectations.
Hi @stimialiti
Comparing it to the world population is a bit extreme but I agree with you. The value of SBD will increase as the interest in the Steem platform increases and the circulation supply of SBD is not that much.
But it is like @vimukthi says in the comments below. There is not a lot of SBD coins in circulation and a small influx into the Steemit ecosystem can lead to a considerable increase in the value of SBD.
It is however a decision you have to make because you are gambling on the possibility of the Steemit platform exploding whilst your SBDs are devaluing at a very high rate.
Not only it is not extreme, it is too conservative an estimation for a young platform which grows much faster than world's population.
I am just trying to explain to myself and to others the fact that SBD rose despite of what you wrote.
I agree. SBD is just volatile and risky. But one think I know for sure is that unless SBD is worth at least 2.5 STEEM, i'm not even going to think about trading any SBD for STEEM. I would do the opposite.
But on the other hand I wouldn't advise anybody to bet huge on SBD ether. Just look at the TA ad if it looks like a bottom, go put some money on it. that's my advise.
What do you mean?
You think that currently SBD is worth more than STEEM? (which is how I am positioned)
I thought you believe that SBD is supposed to plunge due to its rate of creation.
After all you resteemed this thread.
Now you went extreme the opposite way.
Unlike you, I will start exchanging SBD for STEEM way before it gets to 2.5 STEEM, others will do the same, and hence its chances of ever reaching 2.5 STEEM are slim.
A realistic scenario which can lead to it is a cryptocurrency doomsday which takes STEEM to far below 1$.
Not even a STEEM doomsday, because in this scenario, SBD will plunge below 1$ too.
You got a 14.29% upvote from @ubot courtesy of @stimialiti! Send 0.05 Steem or SBD to @ubot for an upvote with link of post in memo.
Every post gets Resteemed (follow us to get your post more exposure)!
98% of earnings paid daily to delegators! Go to www.ubot.ws for details.
You got a 16.00% upvote from @luckyvotes courtesy of @stimialiti!
Congratulations! Your submission earned you 0.008 SBD from this bounty. You have received 0.000 SBD from the creator of the bounty and 0.008 SBD from the community!
Thank you for helping to educate people. I think steem should be a lot higher and SBD closer to $1. If steem ever moons the SBD inflation rate would be astronomical unless SBD is right around $1 maybe even below.
Hi @myseachisover
It would be interesting to see what the inflation can reach in such circumstances but even at current rate it is insanely high. Buying into SBD last year December to hold your coins would have been devalued by more than 200% and this is only looking at the increase in circulation supply.
It is however a very good investment to buy in at $1 because when it moons you have a potential for high profits. There is not a lot of coins in circulation.
Great reply! You don't upvote yourself? My solo upvotes don't count because of the .02 earnings threshold. I hope steem really goes up this year and things start working better. If sbd goes to around $1 I would still probably use it all for bots.
Running a bit low on voting power. This post has been keeping me busy.
There is great potential in SBD at $1 and the plus side is if you buy in at $1 you cannot lose. The guys that had SBD before the platform took off made some good profits.
I agree with you. I will always use it on promotion because 50% will be paid back as SBD. To me it is just not worth it holding on whilst an inflation rate of 580% is eating away at it. What do you accomplish doing this? The platform always aim to get it back to $1 so why the hell would you hang on to it?
I also hope this platform sort out its internal fights because it has great potential but for now, whilst the fights last, I will be on my toes.
65% isn't too bad. I'm usually under 25%. lol
I think we would be better off if the users were more bullish on the platform. I agree with you and think more users should convert their sbd into steem. I think it would help the price of steem out which would be good for the platform.
Congratulations! Your submission earned you 0.011 SBD from this bounty. You have received 0.007 SBD from the creator of the bounty and 0.005 SBD from the community!
You might have gotten me hooked on the steem bounty thing. lol
You deserve some accolade bro. Thanks for shedding this light. Just the perfect time I needed this info.
Same for me @el-morenza
I just started out on Steemit and this will definitely help me going forward on this platform.
Can't wait to see you at the top bro.
Hi @el-morenza
Only trying to help people as I have also made the same mistake. Can you imagine buying SBD last year December for $10 only to find that it is worth barely more than $3 today?
If only one could see the future
Congratulations! Your submission earned you 0.009 SBD from this bounty. You have received 0.007 SBD from the creator of the bounty and 0.003 SBD from the community!
Thank you I appreciate
It is interesting what you say, and the perspective you raise, although I must mention this. The SBD is not currently having inflation, it is having deflation. Inflation is not only the increase in the money supply, but also the decrease in demand, and the SBD, although it has increased in supply, it has also increased, and in a bigger way, in demands, that is why we see that the price goes up to more than 4 dollars.
The formula that you give on the market capitalization is inverse, since the price is not calculated by dividing the market capitalization with the circulating supply, but rather, that the market capitalization is calculated by multiplying the price of the coin for the circulating supply.
In this way, it is not the market capitalization that dictates the price, but the reverse. This is important because when you go to the market, you dont make a formula to choose the price in which to sell your coins, you only sell it at the price you want, and based on that, some people can calculate the market capitalization.
If the SBD supply continues to increase, but at the same time, the demand increases to larger steps, then the SBD will continue to rise in price. And even though we can calculate the supply based on the Steemit rewards, it is impossible to calculate the demand, so the SBD instead of going down may be going up continuously for a long time.
The smartest thing we can do now is divide 50/50 our rewards, and if we want to then we change that SBD by Steem. This way we will be in a certain way mocking the system and earning more than what Steemit gives us.
I personally would not recommend doing HODL with a currency as volatile and speculative as the SBD, since its supposed value is one dollar, so there is no reason for it to rise, however, if you are skilled enough in the market, you can earn a lot from here.
I always enjoy your perspective @vieira.
You bring your explanations back to reality (real life) and it difficult for "educated" people to follow because they were taught that everything fit inside an equation.
One thing that I have realized in debating finance or economics is that there is a lack of words to express ones opinion. This is because the bastards that run the show know that the more you confuse things the easier it is to bullshit people (referring to the people writing the books on fait currency).
The inflation I refer to is purely based on the numbers (excluding) the Steem ecosystem factors. Lets call it Inflation01 (inflation02 being the inflation caused by a lack of interest or decrease of interest in the Steemit platform, hence the demand decreases). I know I did not make this clear enough in my post but I try and keep the posts as short as possible not to boar readers.
This is the reason I mainly looked at the $40mil market cap line for SBD. Only considering this state in the SBD market you will notice that in December last year the price was $10 and currently the price (at the same market cap) is just above $3 (refer to the below images - Coin Market Cap).
SBD Price in December 2017
SBD Price more Recently
As seen in the table below my analysis was done over 125 days and it is important to notice that the market cap is at the same level (lets say that the $40mil market cap is at a specific level of interest in the coin hence inflation02 is the same and not a factor in this calculation).
But it is like @vimukthi says in the comments below. There is not a lot of SBD coins in circulation and a small influx into the Steemit ecosystem can lead to a considerable increase in the value of SBD.
It is however a decision you have to make because you are gambling on the possibility of the Steemit platform exploding whilst your SBDs are devaluing, due to Inflation01, at a very high rate.
@dpl, how have you managed to see these things? It is beyond me how you sat and wrote this post, I would never have thought of it this way. You and @vieira think an entirely different way to the norm.
Hi @lyfie
There are some interesting books written on how we are taken for a ride with the current fiat currency system (The Creature from Jykyll Island and a few other books) and a lot of videos (especially by Mike Maloney) which explains what to look out for. You can search for Mike Maloney on YouTube, his series of Hidden Secrets of Money is really good (economics 101) and you start to realize that what you are being taught in school and University is a load of horse manure.
I have also gained a unique perspective by reading @vieira posts.
Wow @vieira
I really like your way if thinking. I have seen some of your posts and find them really interesting the same as this comment. I am sure a lot of people will completely overlook this perspective.
Congratulations! Your submission earned you 0.008 SBD from this bounty. You have received 0.007 SBD from the creator of the bounty and 0.002 SBD from the community!
This is an interesting idea. We know the STEEM inflation rate from the whitepaper, but not the SBD inflation rate.
You can look at the SBD supply on steemd.com, so I'm guessing this (or somewhere similar) is where coinmarketcap is pulling the supply data from.
My guess would be that they are trying to keep get back to the 1 USD/SBD peg.
Hi @nealmcspadden
I have looked around on steemd.com but can't seem to find the SBD supply. That site seem to be very messy. I am trying to also determine what the post suggest.
Hi @lyfie
If you go to www.steemd.com and scroll down whilst keeping an eye on the left side of your screen you'll find it.
Hi @nealmcspadden
Not sure how this is being managed but the inflation rate is really high. I am still trying to find information on how this works but like @onthewayout mentioned.
Congratulations! Your submission earned you 0.008 SBD from this bounty. You have received 0.007 SBD from the creator of the bounty and 0.002 SBD from the community!
Excellent points made here, @dpl! I've been seeing that too. Just traded some today for steem and the value just keep getting lower and lower.
The inflation rate is really extreme. Can you imagine buying SBD last year December and holding on till today? At a market cap of 40mil you would have bought for $10 back then and at the same market cap it would have been worth just above $3 today.
But the circulation supply is not that much which means that there can be large spikes in the coin with a small increase in interest in the platform. It just depends on the chance you are willing to take.
Great info, @dpl! I wonder how the inflation issue ties into the fact that we no longer get paid in steem, but only SP and SBD. It seems as if they are intentionally causing this. Where is this chart data sourced? It's so small it's difficult to read for me.
BTW, we are about to enter into a very interesting month and we are already in a key year for change. I'm considering doing a post on it, as there is a lot more in play with the powers that be than hardly anyone I think really realizes.
Great point @positivesynergy.
For better clarity from the start the image is from Coin Market Cap. You can zoom into the section of the time line you wish to investigate. I zoomed into the graph on the time from December 2017 to April 2018, added the $40mil market cap line and the red circles for clarity.
If we look at the definition of Steem and Steem Power (STEEM Power (SP)):
See the last sentence as per the above definition "1 STEEM = 1 Steem Power when powered up" and it is the same with powering down 1 Steem Power = 1 STEEM it just takes a while to convert to STEEM. So it does not matter whether we look at Steem or Steem Power, it is exactly the same thing (the one just takes a while to extract for use).
If we consider inflation of Steem (or Steem Power) over a 13 week period (only due to an increase in circulation supply) it is insignificantly small. As seen in the below table it is 2.3% if you keep it in your wallet over the entire 13 week period and do not convert to fiat currency or a different coin as it becomes available. Interesting to note is that inflation on fiat currency (due to an increase in circulation supply) is much higher - look at Quantitative Easing.
This inflation rate (due to an increase in circulation supply) is so small that you can neglect its affect on the price on the coin. In fact it is better for Steem to be locked up in Steem Power because this leads to more investment which can only be extracted over a long period of time. I know it is frustrating but it ensures a healthy Steemit ecosystem.
Can't wait for your post. It sounds interesting!
Great study there, @dpl. Of course, if one pulls it out into an exchange and trades it, they can do far better and control the liquidity too.
Congratulations! Your submission earned you 0.008 SBD from this bounty. You have received 0.007 SBD from the creator of the bounty and 0.001 SBD from the community!
Thank you :)
Thank you for article, and what solution could be suggested? While you receive your SBD reward, just to convert in to STEEM, or what?
This is what I have always done when the SBD price is inflated above $1, trade them for Steem. SBD are meant to stay around $1 USD., and eventually get corrected back to $1. It is the hype with no knowledge of how they work that inflates the SBD price.
Agreed @gregm
I was lucky enough to stumble across this and was not aware of the high inflation on SBD. I kept some SBD available to work with but will not make the same mistake again.
Exactly... I would love to see SBD remain around $1 anyway, that is what they were meant for, a stable currency.
So you think that SBD will return to 1 USD, while STEEM will continue growth? Aren't their prices connected? That's a lil bit unlogical, because income is generated in SBD, and not in STEEM, or I have smth wrong understood?
SBD are nothing more than Steem wrapped in a smart contract. The rewards are calculated in Steem and then converted to SBD and Steem Power.
At the blockchain level 1 SBD is always worth 1 USD (based on the witnesses price feed for Steem). The market price is just speculation. Eventually there will be so much Steem Dollars that the supply will overtake the demand and the market price will follow suit...or maybe not (crypto markets are crazy sometimes).
Agreed @onthewayout
The one thing we can be sure about when it comes to crypto is we can only speculate what might happen : )
Hi @steverogers
At the moment I would suggest taking 100% of your reward for a post as Steem (Select "Power Up 100%") as seen in the image below.
Even the 7 days you have to wait for your SBD's is a significant loss of value. If you use bit bots or receive some good upvotes in the first few hours, inflation on your SBD's portion of the payout will be more or less 11.2% over the 7 day waiting period.
I am, from now on forward, going to select 100% Power Up and will just power down the Steem I have available as Steem Power to have some Steem available every 7 days with which I can work. I'll never hold SBD again.
Thanks a lot for a suggestion!
Hi @steverogers
It seems that I have made I mistake in my suggestion to opt for a 100% in payout for a post. Please refer to the comment buy @therealwolf. One should however convert to steem as soon as possible to avoid the high inlfation on the SBD coin.
Read this post - https://steemit.com/steemit/@bitgeek/50-50-is-a-better-payout-option-right-now
I have run two scenarios for an example.
Example 1
Which includes the high inflation rate on SBD at the current price for Steem & SBD is as seen below. If you opt for 100% payout you will lose.
Example 2
At the current price for Steem but a US$1 price for SBD is as seen below. If you opt for 100% payout you will will break even and as I have gathered from the other comments SBD cannot go lower than US$1.
Therefor, whilst SBD is higher than US$1 you must never opt for 100% option.
Hi man, you´ve done on more great job! Thank you that didn´t forget to mention me =D
So the rule is easy, while SBD is higher than 1$ always chose 50%-50% option.
That is correct and always remember to convert your SBD to Steem as quickly as possible to avoid the extreme inflation rate on the coin. You can either convert to Steem in your wallet or buy upvotes with your available SBD.
Yeah, but at the moment I´m trying to use all my SBD as soon as possible for the next one submission, so they are always in flow, but yeah, holding only in steem.
Great suggestion, @dpl. I'll certainly do that next time, whenever that is... :) Even if it takes 6 months or a year to get everything out, if steemit even allows that, most will power down in 13 weeks, as the weekly withdrawal gets smaller and smaller.
Hi @positivesynergy
It seems that I have made I mistake in my suggestion to opt for a 100% in payout for a post. Please refer to the comment buy @therealwolf. One should however convert to steem as soon as possible to avoid the high inlfation on the SBD coin.
Read this post - https://steemit.com/steemit/@bitgeek/50-50-is-a-better-payout-option-right-now
Damn @positivesynergy!
Are you powering down now or continuing with that account?
Hi @dpl! Still not sure if I'll keep the account or not. I've got 4-6 months to decide through the loooong power down process. In the mean time it's always nice nice to spread the 4 or 5 cents of my SP rewards to my friends 10 times or so a day and keep in touch.
It is still hard for me to think that this happened to you and it was not corrected and the power down sounds painstakingly long!
Have you tried powering down and using the steem to buy votes via www.smartsteem.com?
It is a platform started by @therealwolf and it works really good. If you can buy some high votes I think you will be able to get your reputation back very quickly. I'm not 100% sure that it will work because I have not been downvoted so badly but it is worth a try.
Let me know if you need some pointers on using smartsteem but it is really user friendly and if you get yourself white listed your ROI is even higher and I am sure you will get at least two stars. If not you can always talk to @therealwolf on discord and state your case for your low reputation and he can intervene and may assist.
Thanks for the suggestion, @dpl! I will definitely give that one some consideration to try. I've been using mostly minnowbooster for a while, as well as several others, but decided a week or so ago when I saw my payouts are also cut dramatically to 55% to just cash out what I had liquid. So right now I'm pretty dry of liquidity in my wallet.
That's sort of my catch 22 here in steemit. The only real solution, other than just create another account, given quite frankly they don't care to fix or even make it up to me, is to buy upvotes, which many whales don't like but pretty much accept. Most importantly buying upvotes looses money at least at these levels, because they do not pay out rewards to this account that they claim in the FAQs to pay out of 75% minimum. Maybe it's temporary - maybe not. It's fairly unsettling, gets me pissed when I think about it too much and causes self censorship.
Yes I forgot what you wrote about the payout at that reputation!
I think you have no option but to get a new account. That is very disheartening! You had a good reputation and you have close to 300 followers on that account!
Congratulations! Your submission earned you 0.007 SBD from this bounty. You have received 0.007 SBD from the creator of the bounty and 0.000 SBD from the community!
That's a crazy information. Since steem price is increasing, sbd should too. Holding them will give us equal result i believe. Yes, now SBD is high it should run around 1, that does not mean it will go back its original form. market demand and supply also will be considered. The demand of SBD is also growing, so the rate. It looks to me normal. ( just my own opinion)
Hi @shuvomahfuz
I stumbled across this information when looking at SBD on Crypto Market Cap. Back in December 2017 when the maket capitalization was around 40mil the price was round about $10. Consider again the graph used in the post as seen below.
Today the price at a market capitalization of 40mil is just above $3.
This means that if you bought in on SBD in December 2017 when the market cap was 40mil and the price close to $10 and wanted to sell now at them same market cap you would receive a lot less for your SBD's because of the insane inflation of the coin.
It would have been a lot better to hang on to Steem because the inflation rate is much lower.
Oh...i see. yeah now i understand the point you are making.
I think there is a lot of people burning their fingers because they don't know this.
Good point, @shuvomahfuz, but I can tell you after powering down for the last month that every week SBD has been steadily going down against steem; or maybe more correctly steem is outpacing SBD a lot. So while I'm sure hope you are right, given it does make sense, the market seems to be showing people don't want SBD for whatever reason.
Congratulations! Your submission earned you 0.007 SBD from this bounty. You have received 0.007 SBD from the creator of the bounty and 0.000 SBD from the community!
You bring up a nice perspective. I never even tried calculating the inflation levels. So thanks for doing that work. SBD has a price floor of 1 USD. If it goes below that you can redeem it for 1 USD worth STEEM. So SBD is really a smart contract based debt instrument. The hard cap for debt limit is 5%
So the cap for SBD supply is 5% of the USD value of the marketcap of STEEM. When the debt level hits 2% the rate of SBD printing goes down until it reach zero at 5% debt level.
Despite inflation SBD has high demand and very little supply and marketcap. Due to the low supply and low volume, the volatility can be high. This goes in both ways. STEEM ecosystem use SBD more than it does STEEM. That alone is important.
@ew-and-patterns thinks SBD could be worth 2-4 times STEEM and @haejin is calling for at lest 6 or in an extreme case 12 times the price of STEEM. Such huge prices won't be sustainable for more than few hours at best. It's bound to be sort of a pump and dump. But even after a dump SBD should remain close to STEEM for some time.
So actually I'm bullish at the moment.
@vimukthi
The affect of inflation on SBD is not that forthcoming in the short term but consider buying SBD in December last year and holding on till now.
Inflation on your coins would have been 200% if we consider a market cap of 40mil (lets assume the market cap does not change for the sake of simplicity). You would only be getting about $3 for your SBD after paying $10 for it. This is a considerable loss of value.
Maybe you can limit your risk by buying in when it is closer to $1 but is it really worth it buying in hoping that it will increase 6 fold if inflation is so steep?
What I actually look for is STEEM: SBD ratio. It's hard for me to thik that SBD would reach $1 for a long time. Buying a low volume coin while it's going to the moon isn't a good idea. If SBD is significantly below STEEM price and if both coins show signs of a bottom in price charts, it's a good time to buy. personally I don't think SBD would worth 6 STEEM and be stable. I'm looking for something in the 2.5 - 4 range. Let's see how things would turn out to be.
But if they really want to drop the price of sbd , why doesn't doesn't entire ecosystem of steemit run of steem ,every curation reward will be payed in steem.Basically take all the utility this coin has.Steem will the only currency here then,that will drop the price of sbd signfactly but I think sbd won't go down without a fight . I will enjoy the ride that sbd will delivery sooner or later
SP is actually the value of VESTS given in STEEM. There really is no SP. You get VESTS. You can power down VESTS into STEEM (Basically sell your VESTS for STEEM) It was assumed that SBD would be mostly be around 1 USD and ecosystem was designed to use SBD just like how it is being used today. STEEM is just for trading and powering up. That was the original intention.
Hi @vimukthi
It sounds like you are really informed when it comes to the Steemit platform. Where can I read up on it some more?
Also, you mention:
Do you think SBD will fall away? Is there really that much SBD offer which we cannot do with Steem?
https://steemit.com/faq.html is a great place to start. I picked up most of my knowledge reading posts written by developers/witnesses. It all happened organically and my knowledge about the blockchain is only "Above Average".
Here are few more cool tools to check out: https://helloacm.com/tools/steemit/
A little old post of mine: https://steemit.com/steemit/@vimukthi/sharing-some-of-my-steemit-wisdom-after-228-days-and-1000-followers-a-collection-of-tips-useful-sites-apps-built-on-steem-and
Great place to learn and observe stuff created by @drakos: https://steemian.info
The difference between SBD and STEEM is that SBD has a price floor of 1 USD. In any case SBD price go below 1 USD, you can buy some in the market and convert each SBD into 1 USD worth STEEM. That's how it was designed to be. You can't buy VESTS with SBD you need STEEM to power up. Other than that they are mostly similar things.
What does bullish mean?
Bull Market = Prices go up
Bear Market = Prices go down
It's a phase that every coin goes through ,it that phase it's preparing to launch to greater hights .
So it's better to hold onto it....not that what I have amounts to a hill of beans, still it's all a learning curve to try and understand.
Hi @sunlit7
I would suggest you follow people that does a lot of research on the subject. @vimukthi and @xsid and @jetblake gives some good information.
I don't hold on to SBD anymore and convert it all to Steem or Steem Power. I am not sure whether in the future it would be better to hold on to SBD but the inflation on SBD at the moment is incredibly high. On a weekly basis it is more than 10%. If the market capitalization stays the same and circulation supply is increased at the same rate as in the past months your SBDs will devalue at a rate of 11.2% a week.
But it is like @vimukthi says. There is not a lot of SBD coins in circulation and a small influx into the Steemit market may lead to a considerable increase in the value of SBD. It is however a decision you have to make because you are gambling on the possibility of the Steemit platform exploding whilst your SBDs are devaluing at a very high rate.
Thanks for recommending @xsid and @jetblake They have some really good posts.
Indeed @vimukthi, as do yourself. If you have more people we can follow for good advice on crypto currency please let us know. You have been here a while longer than us and seem to know your way around.
I get my crypto news from all over the place. @haejin @ew-and-patterns @freeforever Are pretty much exclusively posting Technical Analysis mainly on cryptos. Personally I see TA as a form of advanced pattern recognition. Different people have different interpretations. Follow them for a while and make up your own mind.
Congratulations! Your submission earned you 0.007 SBD from this bounty. You have received 0.007 SBD from the creator of the bounty and 0.000 SBD from the community!