3 Things That Will Change If STEEM Goes Back Under $1
One of the particularities of the Steemit ecosystem is the existence of a "stablecoin", Steem Blockchain Dollar, which exists "on top" of the main currency of the blockchain, the STEEM. I used quotation marks because SBD is not really a "stablecoin", because it's not hard pegged to the USD. Instead, it uses a "soft peg", being denominated as "$1 worth of STEEM". Even in this situation, the presence of a "relatively stable" token in parallel with the main one offers a lot of interesting opportunities.
Lately, SBD went back towards $1, but at the same time STEEM seemed to engage in a downtrend too, and it may even go under $1. At this point it will be worth less than 1SBD and that will generate a few interesting situations.
Here are just 3 of the things that may change if STEEM will go under $1 (just want to tell you first that I was on the platform even when STEEM was traded for $0.16).
1.. Conversion Of SBD May Be More Profitable Than Market Price
There is a "conversion" option in the blockchain (which was taken out when SBD went way above the peg) which makes conversion of SBD to STEEM after a period of 3 days. This may prove to be an interesting alternative if STEEM goes under $1, because it may translate in a better price for STEEM.
2. You Will Get More STEEM Than SBD In The Rewards
Yes, that's a positive, if you ask me, because you will get some really cheap STEEM. I still remember when I was getting around 5 STEEM for 1 SBD.
3. A Lot Of Pressure Will Disappear
There is this psychological level, where STEEM is worth more than a dollar. If it goes under, it somehow feels like it doesn't matter that much. The perceived value is dramatically less, even if it's just 10 cents under $1. But the immediate effect is that you're not that focused on the reward, and more focused on the interaction. A lot of the current pressure will disappear. It's a good training.
All in all, I don't think that STEEM trading under $1 will be a tragedy. I've been there before and I know how it is. There is value to made in any context, if you really want to contribute.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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If Steem goes under a dollar I doubt we will have that much interaction around here. Ever since it went under three dollars some "faces" started to fade. BUT I would love to buy five Steem for one SBD.
no worries bots probably keep the interaction w/ each other to cover their server expenses.
Yeah..bots. Another endless story :)
Summer might just be time, when people spend less time on the internet and more in the nature...
Definitely some good things to keep in mind as there has been alot of downward pressure on Steem's price as of late. Even more so than other cryptos as its total market cap has gone from around 26th to 36th now (source: coinmarketcap). Thanks for the info.
Upvoted/resteemed
I dont know if you've noticed of lately, many accounts are becoming dormant by the day, setting there accounts to smartsteem, delegating and all that, thats what happens when an sbd is to one dollar
I know a lot of people are really disheartened by the lower prices, especially after we had seen the higher prices, but I really like it. It means that SP is cheaper and I can get more for my payouts. Yes, the payouts are smaller, but they go further. I'm powering up and in it for the long-haul, so low prices are a good thing.
okay, so these 3 points are really in our benefit, but what about those people, who have bought steem for above 5 dollars?
If youve read his previous post on cryptocurrency investment, youll know better. To every investment lies a pump and a dump.
I really don't know what is going to happen or what is not going to happen but i am hopping for good things that are beneficial for his platform.
Yeah...and we will get to know who are here for the long term and who just here to make quick money(fair weather ones)!!!
yes, i do agree we will start getting more steem, but I don't think so big whales will allow this to happens, some people are saying that in the end of 2018 steem will be trading on 10 usd, what you have to say about it sir?
Interesting article, with very informing points.
My question is for example if you're betting that steem will be worth less than 1$ in the upcoming weeks and you at the moment have 100 Steem not powered up, will it be better to exchange it in the internal market and get SBD and later on when steem reaches lets say 0,80$ the SBD you have since they are pegged to "$1 worth of STEEM" i can get more steem by exchanging them on the internal market...i don't have know if i made my question clear?
Even if it goes under one dollar it will be business as usual for serious steemians :-)
Still the other points make a lot of sense in terms of dealing with such a scenario. Although I am not so sure that it'll go down but its always good to be prepared.