Why is the earning value of posts on steemit dropping?
I am new to steemit just here over two weeks, but over the last few days I have noticed that the earning value of my post are dropping day by day.
I guess I have noticed it because I only earn a few steem dollars per post.
But a post from last week
https://steemit.com/steemit/@wordsatwill/minnow-whales-and-dolphins-oh-my
Had 12 up votes in the first day or two and a total earning value of around $2.60 that has been dropping day by day and now only has a value of $1.89. (see link above )
I am Just wondering has anyone noticed this or can anyone from steemit explain whats going on? I also noticed the earning on up voted comments dropping too..
There are more than one reason for that:
Your final calculation of the payout you get is dependand on the overall sum of votes on the platform in a given time window. There are just so many steem that can be created at any given time. So it can happen, that your payout will go down if no new votes come in. The final payout for your post will be after 7 days of posting.
Steem price. The "earnings" you see on your post depend on the steem price in dollar. Steem (and all other cryptos) have been dropping the past 2 days, so this can also be a reason.
Payouts are always in steem/steem power. So Steem Dollars are just a "intern currency" symboling the value of the steem you get in real dollar. If the dollar price for steem drops, your payout (in SBD) will also drop.
I hope this helped you. I will try to put out a post explaining how this works soon. So follow me if you are interested :)
That's a good idea, because its a little confusing as steem dollars and steem are trading as two separate cryptos
and steem dollars where up yesterday and my post earning still dropped.
Don't look at the price of Steem Dollars to calculate your payout.
This is normal. 1 Steem Dollar (SBD) should always be worth 1 real american dollar (fiat). Or to be more precise: It should always be worth 1 american dollar worth of steem. So, if you get 0.5 steem for 1 dollar, you should also get 0.5 steem for 1 SBD.
But that's the theroy. In reality SBD is worth more than 2 dollars right now, but that is another thing caused by trading.
But that is also the reason why SBD was up yesterday. When Bitcoin drops in value, this means SBD should go up in value (relative to bitcoin, not in dollar). SBD value should not be affected by the drop of the steem price though.
So...Remember how I said your payout is always calculated in Steem/Steem Power and not in SBD/Dollars? This is why the dollar price can change.
If you make a post and it gets 12 upvotes and those upvotes give you 2,60$, this actually means you are getting Steem/Steem Power in the value of 2,60$. Let's assume the value of steem was 2,60 dollars at this time. This means, your post is worth 1 Steem. Now if the price of steem drops in the next days, let's say to 1.50$, and you didn't get any new votes, this means you should now see a price of about 1.50$ on your post. Actually a little bit more, because the calculation is based on an average of the days (not sure about that yet).
I know, a little complicated ;) That's why I want to make a post about this as soon as I have all the infos I need. Many people have questions about this.
If anyone has more infos, feel free to share. Also tell me if I got something wrong ;)
Thanks for the detailed reply, really appreiate the time you have taken to reply to me.. It kind of makes sense to me now. I think someone from steemit need to explain the process maybe in the FAQ section ..
No problem :)
I will make sure to resteem your post when you post it up..
The estimated payouts on the steem are based on a price average. The price of steem has been dropping a bit, so I suspect that is what you are seeing. :)
I am a little confused, are you not getting paid in steem dollars that is a separate crypto to steem on the exchanges.
I am also new barely same time with you and I have notice same with my posts. I can't say what's the actual cost but I think it has to do with variation in currency due to demand and supply.
Real currency value varies with demand and supply.
Surely the amounts paid should remain the same and when to send payments to an exchange then you take the hit or gain in the value..