It is Not Advisable to Use Power Up as of This Moment

Instead of :

Use This Option!

There are a lot of disadvantage if you choose the Power-up (100%) option as of this moment. While powering up is a good thing, I am talking about how to maximize your earnings and the technique of powering up. Allow me to share my insights about this.

The real reason behind why we don't use Power-up Option are because of two things - The Market Price of the Tokens were receiving (STEEM and SBD) :

STEEM

STEEM is the token we need to power up. When we want to power up, we buy Steems out of our bitcoins and use the power up option on our Steemit wallet or we can directly convert our SBDs to STEEM via Steemit Currency Market. That market will allow us to directly convert our SBDs into STEEMS.

Now talking about how STEEM is one of the reason for you not to use Power up Option, this is mainly because its price is approximately at $6 each. STEEM value affects so much on the 50% of Steem Power that we earned from our posts. You may have noticed that you're receiving a small amount of SP right now, this is mainly because of the Price of Steem in the Market ($6). Our Steem Power rewards are determined by the dollar value of your post payout inteded for Steem Power (Half of your Author rewards) and will be divided by the 3-day average period of STEEM in the Market.

There's a saying in Crypto :

Buy low, sell high

Buy at DIP!

Steem Dollars

This is the main reason, we can Maximize Steem Dollars value for Steem. Steem Dollars are defined by Steem as US-Pegged Tokens, which they are treating as $1.00 each. That's the reason why we are receiving a huge amount of SBDs as of this moment. That's an advantage!

So the trick is use the 50-50 Option to maximize your earnings. You'll be given with SBDs (Which Steemit treats $1.00 each from your post payout) and then sell it on the external market at $8.00 each! You can also use the Steemit Currency Market to be able to convert your SBDs to STEEM Directly (Both are computed based on their value in the external market).

Let's do the Math

Let's do a quick computation on why we need to choose the 50-50 Option instead of using Power-up Option when we create a post. Let's consider a $100.00 (exact) post payout on your post.

Post Payout at $100.00

Authors Reward : 75 % = $75.00 (Approx.)

Curators Reward : 25% = $25.00 (Approx.)

If we use Power-up Option (100%)

So all of the earnings are in STEEM POWER (SP) right? Then use $6.00 as a sample 3-day average external value for Steem (Approx 6 in the market now).

We have an Author's Reward at $75.00 and since STEEM is at $6.00 each on the 3-day average period, that's gonna be $75 / $6 = 12.5 STEEM POWER only on your Power-up post right?

12.5 STEEM POWER for using the Power-up Option

If We use 50-50 Option (50% SBD | 50% SP)

Authors rewards are split into half, $75.00 divided by to is at $37.50 worth each. STEEM is at $6.00 each on the 3-day average period. So, you'll be receiving 37.5 SBDs and 6.25 Steem Power.

Take note of this : SBD is currently sitting at $8.00 each and with Steem at $6.00 each. So if you want to convert your SBDs to STEEMs to Power-up. 37.5 SBDs x $8.00 each = $300.00 and if you'll buy STEEMs for that, you'll be receiving 50 STEEM!

So 6.25 + 50 = 56.5 STEEM

Very far from the STEEM (SP) value if we choose the power-up option which is at 12.5 only. There's a major difference between them. Its like 4.5x than what you receive when you power up. So who will you choose now?

50-50 Option or Power-up?

I've presented my thoughts now and I hope you understood why we should not use the Power-Up option as of this moment. Thank you :)

If you have any questions, comments, reactions, or opinions about this post, please comment it down here. I will be more than happy to attend them all :)

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