Your Posts On Steemit Are 30% More Valuable Than You Think
Steem Backed Dollar, or SBD, is a US dollar pegged currency, aimed at stabilizing the internal market. According to the Steem white paper, its value is "1 dollar worth of STEEM".
So, if STEEM is trading at $0.5, an SBD will be 2 STEEM (because 1 SBD should equal 1USD).
Lately, the peg was broken. For some reason, SBD was trading (and is still trading) way above $1. According to the screenshot below, which was taken on June 2nd, 1SBD = $1.6.
That creates a very interesting effect. To make a long story short, you can sell your SBD to buy cheaper STEEM.
How do you do that?
Well, here's how I do it. First, whenever I get some rewards in SBD, I immediately go to the internal market, where I can buy or sell SBD/STEEM (I don't use the Convert to Steem feature).
Once there, I simply buy STEEM. Now here's where it gets interesting: one STEEM bought in the internal market is 0.65 SBD.
If you do the math, you'll see that the end price in USD is still $1.04, which is the current trading price of STEEM, BUT, there is a BUT... You get your SBD rewards as if they're pegged to the dollar. In other words, you get 50% SBD, 50% Steem Power.
So, by selling your supposedly-pegged-to-the-dollar-SBD for STEEM you actually get STEEM at a 30% premium.
For as long as the peg will be broken, there is a good opportunity to get some cheap STEEM.
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.
https://steemit.com/~witnesses
(blink)...huh?
I just sell SBD for Bitcoin...at Bittrex.
If you look at it, STEEM variations are bigger than SBD. SBD grew 60%, from $1 to $1.6, while STEEM grew 1000% from $0.1 to $1. So it's more profitable to hold STEEM than SBD.
I'm holding Steem Power...I split 50/50 on my author/currator rewards..the SteemDollars I convert to BitCoin daily...
I'm holding Steem (in SteamPower) and bitcoins..
amiright?
FOR example...just now...I transferred and sold 18.430 SBD .
I now have $ 42.3936 worth of bitcoin...(I think..)
For the long run, it will be more valuable to keep your value in STEEM. Of course, you can offset the risk by keeping some of your assets in a "safer" currency, like Bitcoin, that's up to you.
But the potential of growth for STEEM may be bigger than Bitcoin (and SBD, obviously). Bitcoin grew 8 times over year, STEEM grew 14 times. You do the math.
How much did Steem fall in that same year...seems like it's high was $4...and it's low was about $.04
It's only regains 1/4?
yes, exactly. But we're talking the first year of existence. You don't want to know how Bitcoin did in its first year of existence :)
I already know...
irregardless...I only have my TIME invested...it's not like I'm going to lose anything.
I'm considering diversifying my investment...(from the 50/50 reward thing)...leave 50 in Steempower...50 as SBD which go to BTC...then what?
meep
Ok! Got it, very helpful post! Thank you good sir!
http://coinmarketcap.com/currencies/steem-dollars/
Awesome, got a bookmark and upvote / follow from me good sir!
Wow! I'll need to reread this a few times, but if I understand what you're saying this could be the most valuable post on Steemit! Resteeming! :)
Awesome! Thanks for the tip
Interesting post - thanks @dragosroua
By the way, explain light seeker - I think I may be one?!
I just feel better where there is light, as opposed to where there is darkness (on all levels, material, spiritual, you name it).
I would agree about the light but what about yin and yang - don't we need a bit of both?
absolutely :)
Google 'lightworker' on YouTube! I think you will find it interesting...
Super interesting, thank you. Upvoted, resteemed and following.
Greeting from your new dedicated follower 😀🍺
Cheers and thanks ...
great information
thanks for sharing
Now i know what to do with my SBD
Do you know why SBD is not pegged to 1USD anymore? I guess it can depend on a volume of trading on the external market
Strong demand for SBD (from external markets) and too little supply. If / when the demand will meet supply, the peg will be restored.
thx. that's what I guessed.
moreover, the circulating amount of SBD can't increase simply after the demand, can it? (I'm not into the cryptocurrencies enough to understand it, I just use my knowledge about traditional monetary economics ;) )
No, there's a fixed amount of SBD that's "printed" (or "minted" if you want) every day by the Steem blockchain.
How did you gain access to all theseeee special knowledge?
So sir it applies here the supply and demand then? Very interesting we all looking forward for steem go go high. Tnx for this very interesting post of tips sir.