Five things you really have to know about the Steem/SBD-Ratio and how to maximize your profit
- There is an automatism: the more SDB in circulation - the more pressure for sinking prices
- there is less volume of SBD in the market in comparison to Steem and other coins (38 Mio. USD)
- a lot of crypto-"investors" don't really understand what they buy
- some of them buy SBD because they think it is a cheap way (market cap) to buy "shares" in steem
- because of the low volume rule 3 and 4 are stronger than 1 - temporarily
In the beginning of the year we have the 1:1 ratio of SBD and USD (green line). With the rising interest in cryptocurrencies the price rises too. When somebody burns bigger sums of SBD (purple) (promote or such things?) the price rises. In december the demand of new "investors" rises much faster than steem system can produce SBD, so the price rises. In reaction of rising prices more SBD is produced.
More authors don't power up with 100 % but get SBD as reward. They get more SBD-reward because 37.5 % of the reward is directly paid in SDB without any exchange rate like the steem part of the reward which is sinking with higher exchange rates. Authors don't pay a lot of SBD for promoting (burned) when one single SBD is worth 8 USD or more. So the production of SBD is high. There are more and more SBD in circulation and everybody hopes the price will again reach the high levels of 8 or 13 USD.
But I think the price will fall in the next weeks because the change in circulation is slower because there are a lot hoping authors who acts like the price will rise in future so they produce SBD. Only a near crypto-boom like in december will make SBD-prices rise as we have seen it in december but then steem rises too. So, over all it is better to buy steem then hodl SBD.
What do you think? Please, reply if you have a thought, a question or an other opinion. All comments not made by bots will be upvoted due to better visibility.
@azmielbanjary: thanks for resteeming
I am learning about voting and resteeming post I have done both I hope it helps us all grow
I am also learning about steemit (voting and resteeming post). Already find out about voting but don't know anything about resteeming post. Because I am new here!
I wonder if people have more trust in SBD than in tether (USDT). However SBD Volume is too small to be a safe heaven for their "electronic" USD.
@steempowerwhale: Maybe I will print some SBD when the price rises. ;-)
Upvoted and resteemed
Nice job
@netaterra: Thank you. I follow you now.
Good post, request you to follow me and upvote please. I am also following and upvoting you.
Thank you
https://steemit.com/@yousufpatan
@yousufpatan: Thank you, I follow you now. Have a nice day.
Thanks for nice and informative post.
One question, if I buy steem, will it affect my reputation rank and rewards?
Only indirect. Reputation is influenced by the upvotes and downvotes (flag) of your posts. You get more rewards from curation and self voting if you have more Steem Power. Steem that isn't powerd up have no influence. If you have a lot of Steem Power more people will interact with you because they are interested in getting your upvote. So you have the indirect affection of your reputation by more upvotes for your posts.
@originalworks
I am trying to learn but there are so many new things everyday steemit is such a great place to be exposed to this new and amazing world. Thank you for this post does help but I would like to learn more. May I follow you ? I think I could learn a lot from you? I would also like to learn more about minnow support. it may be my new favorite place.
Thank you. Maybe another little info for you. If you want to get some more upvotes you can use https://steemfollower.com.
Have a nice day, captain.
thank very much i will check them out
The thing is, that SBD is only traded at Bittrex (at least >90% of the market cap) and I always wondered, how people even find it there and if they just buy it because SBD has a fancier name than "just" Steem. There is no question, that there will be more sellers in the near future, but I´m wondering, who the buyers are?? Who buys an IOU worth $1 for $4+?
I came up with many explanations, but one may be, that Steemit Inc. is keeping the price high and "playing" the market. A high SBD price is maybe the best marketing for the platform. Since there is only a very small supply, we should take this option in consideration....
@atmosblack: I don't think that manipulation is necessary. I like to invest regarding to the marketcap. I like to compare to other coins with similar characteristics, with a high developer activity and with low market cap in comparison to non-coin companies (like facebook). My first thought seeing SBD was: hey a good deal. But I only invest after understanding. So I have read about the inflation and so on. But I really believe that most of the investors of the boomphase didn't read a lot. That is the reason why prices of all coins go down as fast as they go up. Because a lot of "investors" didn't know what the hell they are doing. Keep acting on the ground of better understanding of the things you put your money in. Don't hesitate if you see some others acting unlogical.
I'm shocked that SBD has remained 'broken' from the $1.00 peg for so long. Once 'untethered' it's difficult to ever go back. Not unhappy about it, though. Get some discounted STEEM with our earned SBD and convert to Vests! Help those #redfish to grow.
You just planted 0.02 tree(s)!
Thanks to @tinoschloegl
We have planted already 2605.592 trees
out of 1,000,000
Let's save and restore Abongphen Highland Forest
in Cameroonian village Kedjom-Keku!
Plant trees with @treeplanter and get paid for it!
My Steem Power = 18401.56
Thanks a lot!
@martin.mikes coordinator of @kedjom-keku