SBD Close to $1.00 - Should You Select 100%SP If it Equals That Price?

in #steemit6 years ago

What happens when SBD is equal to $1.00 US?

Your SBD is always backed by $1.00 US worth of STEEM.

Right now you most likely have the 50/50 reward option. A little while back, this 50/50 options was set as the default option. As long as SBD is above $1.00 value, then it is clear that you should select the 50/50 reward option. This is because 50% of your rewards are paid in the quantity of SBD and 50% of your rewards are paid in the US dollar equivalent of STEEM. To put it simply as long as SBD price is greater than $1.00 then a 50/50 reward option will get your more money.

But what happens when SBD is equal to $1.00 US

It really depends on what you think is going to happen to STEEM price. Ideally you just switch to 100%SP reward, however, that may not be the best option.

Once SBD is at $1.00 in value, you have 2 options if you choose to collect rewards.

  1. What if STEEM is expected to increase in value?
    If you believe this to be true, then the option should be 100%SP

  2. What if STEEM is expected to continue to decrease in value?
    In this case you may want to choose 50/50 reward option.

Reason: SBD can't really go below that value because it is backed by $1.00 equivalent of STEEM. This can essentially work as a safe haven for your SBD. If STEEM continues to go down, then any SBD you have or earn will remain at $1.00.

Choose wisely

Here is how to change the option:

Select "Settings" from your home page

Select the down arrow on the "Comment post rewards" and choose your option.

Please remember to VOTE and ReSteem

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For a breakdown of how Steemit Rewards system works:
https://steemit.com/steemit/@socky/steemit-rewards-breakdown-a-simplified-explanation-with-illustrations

For a breakdown of Steemit Keys:

https://steemit.com/life/@socky/do-you-understand-your-steemit-keys

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This is a very good point! I checked CoinMarketCap just a few minutes ago and saw the SBD price was approaching $1.00. Your two options you gave make the most sense to me!

This reward system can be confusing. Glad I can bring some sense to it.

Thanks for the explanation I always wondered about how the the peg works, but you’ve cleared that up now! As horrid as this bear run has been I’m just keeping faith and stacked up as much crypto as I can each month and ready if and when we ATH again

Glad you liked my blog. Stay faithful.

It is worst to make a 100% power up?

Just remember if SBD is above $1.00 US, then choose the 50/50 option because you will make more money. If SBD is at $1.00, then both the 50/50 and the 100% will make you the same amount of money. When at $1.00, SBD can be a safe place for your investment if the market continues to drop.

I will stick with 50/50

Not because I think STEEM will go too much lower.

But I like if I have both SBD and STEEM.

But yes if prices get too fucked up I will change.
Because I could just trade STEEM to SBD then.

Excellent advice I will publish it in Spanish. Greetings.

SBD cercano a $ 1.00 - ¿Debería seleccionar 100% SP si es igual a ese precio?

OK, Please do.

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