Opinion: 50/50 and Sell SBD
There are three ways to structure your rewards to maximize profits:
- Power up and hold SBD
- 50/50 and sell SBD
- Power up and convert SBD
Which of these three is best has to do with the price of SBD. Theoretically, SBD should be worth $1. If it is far from $1, then you can leverage the difference for a profit.
If SBD is worth $1, or close to it, then you can't really profit from it. When SBD is close to $1, I think it would be best to set your reward preference to Power Up 100% and reap the benefits of extra SP. If you have extra Steem, hold on to it for now. Selling SBD is preferable to converting in this state as they will yield the same value and selling is faster.
If SBD is well over $1, then you want to set your reward preference to 50/50 payout. The rewards are allocated as if SBD were worth $1. If SBD sells for $1.25, then selling the SBD for Steem gives Steem than if you Powered Up 100%. Hold on to the Steem for later.
If SBD is well under $1, then you want to Power Up. Sell any Steem you have saved to acquire undervalued SBD. Then use the 'convert' blockchain function to get $1 worth of Steem for each SBD. For example, if you buy SBD at $0.85 and convert it, you are getting $1 worth of Steem for only $0.85. The conversion process takes a few days but, as long as the SBD price is low, you can keep repeating it.
Using this logic, it is my opinion that it is currently best to get the 50/50 payout and sell the SBD. Right now, SBD is valued at more than a dollar.
lol - so now cheetah rewards for re-posting.
Not that I mind, this kind of information should be repeated as it can benefit others who missed the previous post, as I had - what you say makes a lot of sense and now that you have pointed out (what should have been) the obvious, I will try to follow your advice.
I do not know how well versed you are in the complex world of digital money, but many of us are very ignorant and find it difficult to understand. If you have the knowledge, why not offer to help/answer questions, for a small fee? I suggest this because I see you have the gift of explaining facts in a an easy to understand manner.
Good post, how much have you invested in steem basic income?
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About 6000 Steem. I don't think I can invest too much more than that; I'd have to post about 10 times a week to get my full reward! What about you?
None, and have 8 I think and I don't remember how I got them!
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