Why A High SBD Is A Good Thing | A Post On Behalf Of All Minnows
I wonder how many have noticed that the Steemit feed is flowing at a much faster pace than before. There seems to be a added urgency to the feed which seems keener than ever to display the latest new post. That my friends is the result of the new high value of SBD! Well it's not brand new but has been on since the beginning of December last year. I just refreshed the Steem Dollars page of Coinmarketcap.com and the current price that shows is.... 6.75 USD!
Steemit bloggers are thrilled at the well-earned higher income. It's almost like you got a triple promotion at the office and you're now earning what your boss's boss was earning a few weeks before!
But while bloggers continue their work with a renewed vigor and excitement there are serious discussions in the backrooms on how the SBD can be reverted back to $1.
Steemit needs the SBD to be more than just a dollar. The reason being that a vast majority, and let me peg it at over 95% of Steemit users, come here not just to blog and make friends but mainly to earn an income. Some post for a nice side income and others for paying their bills through the SBD that they earn by blogging and commenting on Steemit. Ever heard of countries where entire populations are struggling due to their devalued currencies? SBD earnings enable them to see light at the end of a tunnel.
Some of the most popular posts ever are those that offer tips on how to increase earnings on Steemit. The most popular keywords pertaining to Steemit with high search volumes are "how much money can you make on Steemit", "making money on Steemit" and "how much can you make on Steemit."
As the instances of unemployment and pink slips continue to rise the world seeks refuge online, trying to look for what is loosely termed as work-from-home jobs. Except that while these folks do work from home, they do so because they do not have an office to go to. They could be people who lost their jobs, quite often due to no fault of theirs, or can't get jobs in the first place, or single moms who just can't leave their kids at home at the mercy of an outsider.
There is no way a disabled person can earn a decent income until the entire world realizes that the disabled do not need sympathy, but jobs in offices that will accept them without judging them and make their premises disabled-friendly.
If you "get it" now, you will start understanding why a high SBD is a good thing for the overwhelming majority of Steemit. At least on Steemit, the majority should win, if not in the offline world where money trumps physical human numbers.
While the earnings on Steemit are earned in two parts, namely SBD and Steem Power, it is the former that enables bloggers to meet their expenses - at least some of them. If Steem Power needs to be cashed out it involves a lengthy process which also results in downgrading the amount of already small "minnow power" that one has. Imagine upvoting a post with a fraction of a cent! On any post with more than 20 upvotes a vote smaller than a cent will not even be noticed when the author clicks on the drop down that shows the users who upvoted the post.
Most importantly the increase in SBD has seen a resurgence in legit activity on Steemit, something that seemed to be on the decline especially in the case of tenured bloggers. Once bloggers saw that they could get rewarded well for their efforts with a higher value of payouts they started publishing more frequently. What's more, the quality of posts also went up with the bloggers trying harder, hoping to get more upvotes for their content.
As an owner of one of the largest support groups admitted recently, his group showed an increase in new membership numbers in the last month which was actually equal to the entire year's numbers. Almost all active support groups and those set up for a cause have seen a spurt in membership since the value of SBD went up. That is a surely a good thing for a social platform that is trying to build communities.
I have seen several posts describing the intricacies of the varying values of SBD as well as the fluctuations of Steem. Technicalities aside, the fact remains that a high SBD means more growth for Steemit and an increased zest for blogging, both of which will decline if the SBD goes back to $1 or less - which was mostly the case previously. Once Steemit has grown to a size and position where it is well established and not a "beta" platform anymore, we can talk of things like pegging the value of SBD to something lower.
Before leaving here are a few questions for the czars of the Steemit world. Let the value of SBD not be allowed to go so high up as 14 USD as was seen in December last year, but why not peg it at a value equivalent to 3 USD or 2 USD?
Why must it have to go back to a measly equivalent of 1 USD if fiat currency is thought to belong to the past and a diminishing phenomenon which will be replaced by cryptocurrencies?
If it has to stay at a value of 1 USD, why not increase the payouts by increasing the reward pool?
If you've got this far, thanks for reading!
Don't forget to type YOUR opinion in the comments section below!
Would you please upvote and resteem this post so that it can reach others too? Also do follow me for more useful and interesting posts.
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@maxbit, great article. I believe the high SBD is great for growth. It will definitely increase interest, and honestly, I am loving pulling off some SBD to invest in other opportunities (which I have only done in the last month or so).
My only concern is that a highly volatile SBD make it more difficult to accept SBD for products or services. I have a product that I want to sell for SBD but I do not want to have to adjust prices daily. I will, but it does make completing transactions more challenges.
Just my two cents. I will do my best keep Steeming in either situation :)
You do have a point there and it is one that the stakeholders are talking about. A volatile SBD makes it a moving target.
Great thoughts on the issue. I don't think I've heard anyone complain about the fact that they are getting so many rewards for posts. Most of the arguments I've heard for the peg involve the economics of it all, which I'm happy to let others figure out while I am still earning good rewards.
It will certainly be interesting to see what happens in the future!
The only ones who may have a problem are those who don't post! Yes, getting a good reward for posts is a big motivator.
Let's hope the best for the future!
That's true. I should probably post more than I do, but you know, life gets in the way sometimes. haha. Keep up the good work, though. I enjoyed this post!
We need high sbd right now. Maybe in the future, it could be actually pegged to $1, but they will have to figure out an alternative way to keep the interest of new users on this platform.
I've thought about a prizes system, based on views and reputation. rewards+$1, rewards+$5 or something like it. :)
You're right - keeping users interested in the long term is so important for Steemit and the future of Steem.
The prize system is a good idea except that question that may come up - who will give those prizes?
There are quite a few curation groups but except for Curie there are none that reward author who have been featured with prizes - except with an upvote of course which is a reward.
While I'm currently enjoying the higher liquid payouts, because SBD is high, the SP I'm getting out of posts is significantly lower. I'm in this for the long haul, not just immediate money. SBD are supposed to be a dollar, because it's how the payment algorithm is set up.
A high SBD means powering up a post is pointless, as you could get way more SP for the SBD you'd get, than what would be generated by the post, because STEEM and SBD are calculated separately at payout.
That is a very good point! I am also in it for the long haul. But from the online chatter, I think most people signing up in the last few months, are doing so for more immediate rewards - while they appreciate the increase in Steem Power little though it might be.
In any case until SP goes up significantly, it does not have an big impact on curation rewards or the ability to get noticed. On the other hand, someone who is not interested in using the cash can always turn the SBD into Steem and use it as Steem Power.
A well thought out posts and I have noticed the growth since SBD climbed in value
I have seen mention of efforts to bring it back to the 1US level but I see the efforts falling flare maybe they need to rethink things
Yes, there is a lot of talk going on but the fact remains that a high SBD is good for most people on Steemit. Thanks for your comment!
Your welcome :)
I see where you are coming from, and love a high SBD myself. I think there may be a concern of the Steem Backed Dollar being harder to back if there is a drastic imbalance to how the system was originally designed, but I also agree with the reference to fiat being an old tool. I think when it's out of beta, it would be more likely to do what it wants. At that point, it's an established form of exchange world wide, and probably wouldn't need to be steered as much. This is obviously just another point of view and all theoretical. I am not authority, haven't done enough research. Now fixing the reward pool rape, that would change a lot. Good post, great conversation topic. Cheers!
At this point Steemit's growth is crucial and the value of SBD falling will definitely stunt the growth. As mentioned in the post, fixing the SBD level can always be done at a later stage, say a year down the line when the beta tag can be removed.
Fixing the reward pool issue is a whole new topic in itself which I will be covering in another post.
Yeah, this reward pool issue is tricky. The system is doing what it was designed to do, there are just people exploiting it, just like the real world. Yes growth is of upmost importance, but if the high SBD causes instability or potential death before mainstream life, what's the point? I do not know if that is a concern at all, was just theorizing with you :). I follow for next post!
I think high SBD is great for people trying to make money and is also good for the content quality here. Thanks for posting.
A high SBD means happier users and better quality, whether on blog posts or comments!
Yeah it's great, cause it encourages involvement, wether through creative posts or commenting.
So true, just wrote about that in another comment.
Thanks, man! This was very interesting, I personally just wish steem was lower so I could invest a little and have more sp and not be waiting for the miracle of a whale to notice me.
The best time to buy Steem is NOW!
If you think of how much more Steem will rise in the months ahead especially with the introduction of SMTs these levels will always remain a dream.
By the way, if you want more SP you can also lease some, either from Minnowbooster or from individuals for which you can check out the Discord groups.
Yeah, looking it that way makes sense. I'll think about it, there are so many numbers to crunch hahaha. Thank you, again!
When I begin reading posts like this - I get so excited because I want to learn the ins and outs of steem, steem power, steem dollars...... and I feel like I'm always right on the cusp of figuring it out! hahahaha I started to feel the disappointment of STILL not quite getting it... when I saw that you said you have other extensive posts detailing it.... (encouraged again!) LOL I just want to find SOMEONE that can explain this to me as if I was a 5th grader. Really! Dumb it down as much as you possibly can - use sock poppets if necessary! hahahaha but i just want to get it! and I think a loooooooooooot of other people do too :) help us!! :) i'll be perusing through your library to see if I can get it to click! :) thanks for the post!!
Thanks for your comment! I am glad that you seemed to have liked my post.
I noticed that you have been around on Steemit much longer than me - maybe I should be learning a few things from you. ;-)
hahahaha - well i joined in 2016 - but then had some time where I needed to focus on my health so i had to step away for a while...
but now i'm back! hehehe so i'm sure we can be learning from one another! :) look - our reputations -both 54! so we are good teachers for each other :)