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RE: Never Hold on to SBD! They Are Being Devalued At 583.8% Annually (48.65% Per Month).
Thank you for article, and what solution could be suggested? While you receive your SBD reward, just to convert in to STEEM, or what?
This is what I have always done when the SBD price is inflated above $1, trade them for Steem. SBD are meant to stay around $1 USD., and eventually get corrected back to $1. It is the hype with no knowledge of how they work that inflates the SBD price.
Agreed @gregm
I was lucky enough to stumble across this and was not aware of the high inflation on SBD. I kept some SBD available to work with but will not make the same mistake again.
Exactly... I would love to see SBD remain around $1 anyway, that is what they were meant for, a stable currency.
So you think that SBD will return to 1 USD, while STEEM will continue growth? Aren't their prices connected? That's a lil bit unlogical, because income is generated in SBD, and not in STEEM, or I have smth wrong understood?
SBD are nothing more than Steem wrapped in a smart contract. The rewards are calculated in Steem and then converted to SBD and Steem Power.
At the blockchain level 1 SBD is always worth 1 USD (based on the witnesses price feed for Steem). The market price is just speculation. Eventually there will be so much Steem Dollars that the supply will overtake the demand and the market price will follow suit...or maybe not (crypto markets are crazy sometimes).
Agreed @onthewayout
The one thing we can be sure about when it comes to crypto is we can only speculate what might happen : )
Hi @steverogers
At the moment I would suggest taking 100% of your reward for a post as Steem (Select "Power Up 100%") as seen in the image below.
Even the 7 days you have to wait for your SBD's is a significant loss of value. If you use bit bots or receive some good upvotes in the first few hours, inflation on your SBD's portion of the payout will be more or less 11.2% over the 7 day waiting period.
I am, from now on forward, going to select 100% Power Up and will just power down the Steem I have available as Steem Power to have some Steem available every 7 days with which I can work. I'll never hold SBD again.
Thanks a lot for a suggestion!
Hi @steverogers
It seems that I have made I mistake in my suggestion to opt for a 100% in payout for a post. Please refer to the comment buy @therealwolf. One should however convert to steem as soon as possible to avoid the high inlfation on the SBD coin.
Read this post - https://steemit.com/steemit/@bitgeek/50-50-is-a-better-payout-option-right-now
I have run two scenarios for an example.
Example 1
Which includes the high inflation rate on SBD at the current price for Steem & SBD is as seen below. If you opt for 100% payout you will lose.
Example 2
At the current price for Steem but a US$1 price for SBD is as seen below. If you opt for 100% payout you will will break even and as I have gathered from the other comments SBD cannot go lower than US$1.
Therefor, whilst SBD is higher than US$1 you must never opt for 100% option.
Hi man, you´ve done on more great job! Thank you that didn´t forget to mention me =D
So the rule is easy, while SBD is higher than 1$ always chose 50%-50% option.
That is correct and always remember to convert your SBD to Steem as quickly as possible to avoid the extreme inflation rate on the coin. You can either convert to Steem in your wallet or buy upvotes with your available SBD.
Yeah, but at the moment I´m trying to use all my SBD as soon as possible for the next one submission, so they are always in flow, but yeah, holding only in steem.
Great suggestion, @dpl. I'll certainly do that next time, whenever that is... :) Even if it takes 6 months or a year to get everything out, if steemit even allows that, most will power down in 13 weeks, as the weekly withdrawal gets smaller and smaller.
Hi @positivesynergy
It seems that I have made I mistake in my suggestion to opt for a 100% in payout for a post. Please refer to the comment buy @therealwolf. One should however convert to steem as soon as possible to avoid the high inlfation on the SBD coin.
Read this post - https://steemit.com/steemit/@bitgeek/50-50-is-a-better-payout-option-right-now
Damn @positivesynergy!
Are you powering down now or continuing with that account?
Hi @dpl! Still not sure if I'll keep the account or not. I've got 4-6 months to decide through the loooong power down process. In the mean time it's always nice nice to spread the 4 or 5 cents of my SP rewards to my friends 10 times or so a day and keep in touch.
It is still hard for me to think that this happened to you and it was not corrected and the power down sounds painstakingly long!
Have you tried powering down and using the steem to buy votes via www.smartsteem.com?
It is a platform started by @therealwolf and it works really good. If you can buy some high votes I think you will be able to get your reputation back very quickly. I'm not 100% sure that it will work because I have not been downvoted so badly but it is worth a try.
Let me know if you need some pointers on using smartsteem but it is really user friendly and if you get yourself white listed your ROI is even higher and I am sure you will get at least two stars. If not you can always talk to @therealwolf on discord and state your case for your low reputation and he can intervene and may assist.
Thanks for the suggestion, @dpl! I will definitely give that one some consideration to try. I've been using mostly minnowbooster for a while, as well as several others, but decided a week or so ago when I saw my payouts are also cut dramatically to 55% to just cash out what I had liquid. So right now I'm pretty dry of liquidity in my wallet.
That's sort of my catch 22 here in steemit. The only real solution, other than just create another account, given quite frankly they don't care to fix or even make it up to me, is to buy upvotes, which many whales don't like but pretty much accept. Most importantly buying upvotes looses money at least at these levels, because they do not pay out rewards to this account that they claim in the FAQs to pay out of 75% minimum. Maybe it's temporary - maybe not. It's fairly unsettling, gets me pissed when I think about it too much and causes self censorship.
Yes I forgot what you wrote about the payout at that reputation!
I think you have no option but to get a new account. That is very disheartening! You had a good reputation and you have close to 300 followers on that account!
Actually, there only really seems to be one option, if I am to stay on steemit, as I see it, and that is to find some seriously good whales to give me enough good upvotes to get my rep. and pay back; so I don't have to loose money. According the the FAQs: I can't get another account on steemit, but can get one indirectly on one of the others on the same blockchain, but they cost too...
On top of that, with the CEO missing in action from steemit for several months now, after downvoting his co-founder and creator of steem, I have been told by several who have been waiting for 6 or 7 weeks to get into steemit and they are not approving them now. I think that is a little funny how they allow so many bots and fake accounts to join, as steem cleaners said, but don't allow in at least one of them in particular I know who would have really been at least of serious whale potential.
I did have one good whale with a few hundred grand in the wallet, but that was only for a few nice upvotes of $12 or $13 and then they stopped. I guess I have 4-6 months to see anyway. Hopefully, the creator of steem will create a better version on EOS, w/o the whale economy, as he has said is one of his projects there in the coming months.
Congratulations! Your submission earned you 0.007 SBD from this bounty. You have received 0.007 SBD from the creator of the bounty and 0.000 SBD from the community!