If You're Taking 100% SP PAYOUTS, YOU NEED TO STOP! You're Robbing Yourself. Step in Here, Let Me Explain.

in #writing5 years ago

There's been some confusion around the platform. If you want to power up, it's very simple, as long as SBD is ABOVE $1 USD per share, 50/50 is the best reward payout.

It's simple math, let's take a look at what this strategy will do.

First, many steemers are here to power up. That is their sole goal, and I applaud them! I do a blend of both. I used my SBD for promotions and to contribute to other causes, like #Dolphinschool, but when I get good payouts, I do buy additional steem and power it up.

You don't have to!

You are not:

  • Greedy
  • Stupid
  • Damaging Steem
  • Or crazy

If you cash out your SBD, particularly when the price is high. We are all here to make some money, but purists would have you believe that HODLing and powering up is the litmus test for a true steemer.

Bullshit.

It's yours and you can do with it what you want.

If all the steem ever created had been kept in steem wallets, inside steemit, would we be listed on all of the exchanges we are now? NO! A certain amount of sales into the outside world is needed to drive wider acceptance of steem.

So, what are the benefits of each approach?

I'm so glad you asked. Here, let me 'splain it to you.

The Advantages of Powering Up Every Cent

The fuel of the steemit economy is SP, or Steem Power. To briefly explain, these are steem tokens, invested in the steemit platform. If you want to liquify SP that BELONGS TO YOU (not delegated) it takes 12 equal weekly payments. It's listed as SP in your wallet, buuuuttt you knew that, didn't you?

If not, surprise!

When you hear about minnows, dolphins and whales...

That's what determines it, levels of SP. I've seen several charts signifying what level of SP indicates which level, Who cares? If you use Steem Plus, every profile you click into will have a medallion, indicating their rank. Again, who cares? It is what it is, what you want to know is how much is my vote worth, and how much is that follower's vote worth.

Side note here, if you use busy.org, vote power in $SBD is displayed on each profile.

The ONLY way to get a bigger vote, is get more SP!

It can be gifted to you, delegated to you, rented to you, or you can earn it, but it is the single solitary item that determines the worth of every vote you cast. Period. Sometimes you'll see some other explanation by some well-meaning minnow, tell them from me to shut up, they're confusing everyone.

The quickest way to a bigger vote is by powering up every reward you get!

So, some think this means using the 100% SP button on their blog, but right now, that's not in your best interests, I'll show you why in just a minute.

So, getting more power is the advantage to powering up everything.

When you have more SP, you can grant larger votes to yourself and others. You can determine the power you vote with, and others want to work with bigger fish. It's a very powerful tool.

The Advantages to the 50/50 Split!

There are really only 2 times when you shouldn't use the SBD 50/50 split on rewards.

When Sbd is below $1 per share

When half of 100% SP cash value is greater than the cash value of 50% SBD

Here's what I mean. Right now, SBD is ALWAYS seen as being $1 per share, inside the Steemit blockchain. Even when the USD price was over $14 a share briefly, it was rewarded as if it was worth $1.

Let me show you what I mean. You write a post and you get $100.00 payout. Good job, first of all, way to go!

Now, not all of that lovely reward money is yours, okay?

But don't worry, it's divvied up by the system you don't ever have to worry about it.

First, 25% goes to curation rewards

And soon, the author will not get a portion of this, as has been the rule in the past. So, just assume 25% is gone.

That leaves us with, $75, right?

If you are using the 50/50 split, that's $37.5 in SBD, and $37.5 in SP.

If You are using the 100% SP, that's $75 market value in SP.

The price as of this writing of SP is approx. $3.81

The price of SBD is currently $3,27

So, your split goes something like this

50/50 Reward split= 37.5 shares in SBD and 9.84 shares in SP Cash value= $160.12

100% Power up rewards = 19.68 shares of SP. Cash value $75

Taking the 50/50 Earns you an extra $85.12, more than double!

So, what if I want to power up though? What then?

In your wallet, find the market. Sell your SBD and buy SP. You'll lose a small fraction, but, you'll still come out WAY ahead.

Unless the price of SBD is $1 or less, and the price of SP is below one dollar You cannot come out ahead on the 100% split.

this could vary with transaction fees on selling and converting, with very small margins, it is possible to come out on top with 100% SP

If the price of SBD is once again pegged to the dollar, then it is wash in cash value to choose 100%, and you'll be ahead, due to savings on converting the coins

If you didn't know that you're welcome!

Now Where's My Upvote? LOL

Sort:  

Great article, I personally only use steem dollars for powering up. Cheers

Great stuff @steemgoblin thanks!

Good for you! Hope you get the SP you want quickly!

Ok but where do I sell my SBD for greater than 1usd and then use that USD to repurchase steem? Rather how do you do it yourself?

The simplest way is on the internal market. The internal market takes into account the external value of SBD.

So your steps would be receive SBD for payout. Buy Steem with your SBD on the internal market. Then Power Up the Steem you just bought on the internal market.

Wallet>Market>Buy Steam, super easy cheesy. Here's a more detailed explanation. Note, the convert to steem option is no longer available.

Wow, thank you for this post. It was so very helpful for this newbie!

oh man, so glad you saw this if you were at 100%. It will make you money. but watch for the SBD situation to possibly change.

there ya GOOOOO! good steem economics.

Well, thank you @bearbear613, should be drop dead simple, but a lot of people leaving posts saying just the opposite. You gotta use your head and do the math. It ain't hard.

Very informative. . Your upvote is sure
Thanks for this!

Thank you! I appreciate it. I see you're just getting started. Let me help you out. Check out #dolphinschool and follow @markrmorrisjr for great tips!

Should be obvious, but it's a good piece of advice!

Well, still a lot of folks haven't caught on that the SBD isn't REALLY pegged to the USD any more. Like, at all!

That ridiculously helpful and straightforward. Thanks.

"Ridiculously helpful" I LOVE IT! You just earned a follow, and maybe a comment or two, I'm low on voting power or I would give that as well, but I'm currently supporting #dolphinschool.

Awesome post. Thanks a lot!

Thank you, I appreciate the comment.

Just so you know... I wasted 5 minutes of my life just watching that rhino poop.
I couldn’t stop.
I’m laughing but it just kept poopin and I wanted it to stop!! LOLOLOLOLOLOL

Resteemed the dang thing so others could see the poo too. (And the content).

Jeez.

LOL yeah, I saw it the other day and just needed a place to use it.

Oh so Ive been wondering on this. Glad you shed some light on it. Keep up the great job

Hey, thanks! Yeah, it's pretty simple. Now that SBD is back over Steem, keep it on the 50/50 and sell-buy-power up if that's where you're headed!

Now it is a bit more clear to me. Thanks!

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