How The Price of STEEM Affects Your Article Payouts

in steemit •  last year 

Recently, as the price of STEEM fluctuated in the market, I noticed that the payouts for my post have been fluctuating as well.

Source: CoinMarketCap

As we can see from the chart above, the price of STEEM kept dipping until it hit a bottom at $2.69 on Tuesday. Around that period of time, the payouts of my articles, which were denoted in USD, kept dropping. I'm not gonna lie, it did not feel good to see my articles lose nearly 20% of its value in 2 days. At all.

However, from Tuesday onwards, the price started to climb, increasing to a high of $5.03 on Friday. This accounted for a similar increase in the payouts of my articles, as they regained some of the value that was lost in the beginning of the week.

How Does This Work?

Since STEEM comes from a pool, its intrinsic quantity does not change. Thus, the amount of STEEM that we receive will always be the same. However, the vote price that we see on a post is in USD.

Therefore, when we receive STEEM (technically it's Steem Dollars, or SBD, but that's a story for another day) on our posts and the value of STEEM goes up, we're technically getting more USD for the same post over time, provided we don't cash out.

If this blog post has entertained or benefitted you in one way or another, please follow, upvote, resteem, reply and/or consider buying me a cup of tea.

BTC Wallet - 1B4xDRBYBb8UiFjo6zetXVNegtCUU2af2y

ETH Wallet - 0x84c53fD4CF07C2c183878C7d3261E903cb274765

NANO Wallet - xrb_3nt5ffyhbhgxkjz4aq5nucfnhiuzymr3x96ds3btb1abjyywceyztiucd7r6

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Coins mentioned in post:

CoinPrice (USD)📉 24h📉 7d
SBDSteem Dollars4.269$-13.06%10.16%