RE: [Steemit Thoughts] Should we be powering up 100% on every post?
Steem vs SBD vs SP. Actually I don't think it matters.
Intuitively speaking, if you consider the three tokens as one system and evaluate how much money is going into the three tokens collectively, how could there be a difference for the success of the platform?
Looking deeper, I think the complexity lies in the SBD-dollar peg. There is an active monetary policy that serves to maintain this peg. If you buy steem with SBD it does not necessarily affect the market's appetite for steem.
If you buy steem with SBD, you have upward pressure on the SBD STEEM price which would lead to corrections in the SBD USD price and STEEM USD price. Arbitrage-wise, note that either the STEEM gets pricier or SBD gets cheaper in response, so it's not a given that STEEM demand is increased.
Just to cement this point further, suppose it is a given that you are choosing between the following two sequences:
- 100% power up
- 50/50, followed by buy steem, followed by power up.
The end result is the same, and once all is settled the market should not be able to distinguish these two cases or something is wrong with the market :). The only difference is that you get control over the SBD STEEM price.
I think the issue of bots on the balance between SBD STEEM is worth exploring though.
TL/DR: if the end goal is power up, it does not matter to the market whether you do either option.
Hello @eonwarped,
My thought is that by selecting 100% power up and earning STEEM POWER instead of 50% SBD, we forfeit the ability to decide when and how much to 'vest' (STEEM POWER). We also forfeit the ability to make quick and regular purchases of STEEM to show a constant demand for the token to help offset people who are selling off and lowering the value.
My understanding is that because STEEM and SBD are traded independently outside of the steem blockchain, that when we click on the 'market' and buy and sell STEEM and/or SBD, we are affecting the OUTSIDE market. I would think that our collective purchase (however small) would ultimately have an effect on the trading values on bittrex and bitshares and hitbtc and Cryptopia, etc as it shows further demand for the token, encouraging buyers to consider investing themselves.
If I were to use bitshares (openledger.io) to trade SBD for STEEM, it would show further demand for STEEM. I would think it's the same within steemit.com
So the idea is that additional 'buying' doesn't created demand if it's trading between SBD and STEEM, but if someone traded Bitcoin for STEEM, that would create demand. I'm not sure why that would make a difference?
Thank you for your detailed comment. Good food for thought. @ironshield
Right, so my point doesn't really dive deeply into the subtle interactions between SBD / STEEM. But keep in mind the fact that there is active maintenance on the SBD's dollar peg makes a big difference if you compare it to the Bitcoin / STEEM pair.
I think the main point I wanted to highlight was the two sequences above. A buyer considering buying into Steem should not care about which route you opted to take. So my intuitive market sense is that it does not matter. There are all sorts of micro adjustments going on due to the effects in aggregate but those all ultimately get corrected in the long run to what the market truly values.
But yes this is all very interesting to think about.
Hey @eonwarped! This is an interesting take on this topic. I love your viewpoint and I think I agree...
EVentually after all said and done...the same direction is the end-goal. Cheers!
#Hug-Challenge!