Everytime I convert my SD (STEEM Dollars) into SP (Steem Power), I feel better about it.
I get guilt pangs when I sell STEEM. If you don't feel emotion when you're transacting, you may be doing something wrong without realizing it.
Look at this poor dog. He has treats in his mouth, but he doesn't know if he should eat them or not.
What you could also see, the dog has "too many" treats in his mouth. The smart thing would be to eat one, and hide the rest for later.
As steem contributors, we need to be smarter than a dog.
Let's not eat all our treats at once.
Now I know by design, the system will pay you in BOTH SD (Steem Dollars) as well as SP (Steem Power)
This is what a lot of people are INCORRECTLY doing:
SD - Steem Dollars: Something you should sell and cash out as fast as you can. Wrong!!
SP - Steem Power: Something you power down and get rid of quickly. Wrong!!
This is what we should do instead:
SD - Steem Dollars: Something you take a portion of, if you need a bit of money today. The rest should be used to buy more STEEM so you can power up, and convert it into Steem Power
SP - Steem Power: Something that continues to grow. This could be part of your retirement plan. It also helps you upvote your own posts, and posts of others. Use your "power" wisely, and accumulate as much as you can.
People keep complaining that their stories and posts are undervalued.
What they don't realize, is that everytime you send Steem Dollars to an exchange, and sell it, you're undervaluing the steemit system as a whole "IF" you sell more than you actually absolutely need.
Don't do that to yourself. Don't do it to Steem.
You aren't losing any money when you convert your SD / Steem Dollars in to SP / Steem Power
It's the opposite!
You are gaining money by accumulating steem power.. For these reasons:
- Steem Power is a vested balance. It accumulates more, just by being there.
- Steem Power is basically unsold steem that is not available on the market and keeps the price up!
- Steem Power is showing that you "believe" in the system
- Steem Power is like a savings account, so you don't spend all your money all at once
- Steem Power is going to be harder to get as more people join steem. Get it while you can!
Don't be the dog and pig out on your Steem Dollars or your Steem Power balance save it.
The system is designed in a way that the price of STEEM should be very low in the long term. Everytime a coin is created the value of your actual STEEM goes down. STEEM POWER will counter balance that inflation, but you won't be making any actual profit from it. And if you buy STEEM POWER today with the price of STEEM that is very high (2 USD) you are actually getting less with your SBD that you would be getting when the price of STEEM stabilize again to 0.25 USD.
So the most interesting thing to do is to keep SBD in your account, wait for the right moment to buy STEEM to POWER UP your account. That's it.
That's right, if you're right. The rule of thumb though, is to always want more Steem Power.
If you keep an SD balance too long, you're not earning the same interest rate as Steem Power provides.
But SBD is pegged to the dollar, so it should retain value. STEEM doesn't have any real value and STEEM is created out of thin air. And because STEEM should drop in value over time, i believe that SBD is the best choice. If you create content 50% is going to SBD and 50% to STEEM POWER, i think you should keep it that way.
I'll be interested to see what other people think. All I know is that steem power accumulates more vests, a lot faster, than the interest does on holding SD. You win if you always buy more steem power early on, especially over the first 9 months of steemit's release from what I've read.
Also 90% of steem created on a particular day gets redistributed to holders of steem power.. who are basically shareholders in this whole system. You miss that payout when you hold SD.
Yes that would be true if Steem price was steady or going higher. But steem price should go lower.
Steem Price will be higher. 0.000001% of the internet knows about steemit right now.
The economics are the floowing. Yes you get 90% interest per year for your steam power, but yes steem is inflated 100% per year (currently even more / 1% per day).
That means yes, effectively you loose 10% of your steem stake per year, currently even 0,1% per day.
Yes, if new buyers come in that buy up these 10% per year your steem power would be worth the same counted in dollars. If new buyers buy up more then these 10% you make a win counted in dollars.
If you just hold the steam dollars you get currently 10% per year. So only if 20% new capital is coming into steam, investing in steem power would be more lucrative then investing in steem dollars. In way we also have to count that indirectly the steem holders are paying for the steem dollar interest, so the amount of new capital needed per year so that steem power is more lucrative then steem dollars is even greater...
I would suggest to use your steem dollars and convert them manually to steem if the price is less then for example 90 cents. so you make in average 5% to 10% win per week. The steem I would use to buy new steem dollars if the steem dollar price is below 1 dollar.
If the steem price is not falling anymore you then can use your steem dollars to buy new steem and power up.
What do you think?
Thanks I'll be buying steem power for the long-term investment gain !
Find a balance between holding enough SP to keep up with inflation and also holding some SD so that when it tanks, you can pick up some Steem for cheap then Power Up.
Жалко😭
Good thinking
This was great but I feel so bad for the cute dog hehe
i've just done my first 0.003 conversion LMAO! It seem like there is a lot of work to do in here, thanks for the info, even tough this is an old post!
Hi! This post has a Flesch-Kincaid grade level of 4.2 and reading ease of 94%. This puts the writing level on par with Ernest Hemingway and Donald Trump.
Hi! Interesting post. Wish you great emotions in Steemit! Good luck!
Please, read my post too: https://steemit.com/introduceyourself/@knyaz/hi-steemers-my-name-is-igor-knyaz-and-i-ll-be-35-in-two-weeks