STEEM / SBD - STEEM is On The Rise (Relatively)
So I woke up this morning to find that the USD prices of STEEM and SBD were getting butchered in the markets to the tune of down 20% or more from yesterday. Obviously, this is not my most desired outcome.
Nonetheless, I believe in the STEEM blockchain project as a really revolutionary approach to human communication both in its permanence and its un-censor-ability. So long term, I'm not worried. In fact, I'm rebalancing some of my BTC earnings into STEEM.
But then I got to thinking, what's more effective? Should I buy STEEM or SBD?
So I went to coinmarketcap and downloaded the market data for STEEM and SBD over the past 12 months. The historical data provides open, high, low, and closing prices along with total volume for the day. So I tabulated all of that and did the ratios between STEEM and SBD for each day as you can see in the chart above.
Interesting observations:
- There are a number of spikes in the ratio on certain day's high prices. So we are seeing some market volatility. If you're quick, you might be able to capture some of that volatility.
- The Sep 2017 - Dec 2017 period that saw a large dip in the ratio was when SBD got up to 10 USD. The speculation at the time was that the whole crypto market was going nuts and crypto n00bs were just buying any damn thing, including SBD, without understanding what each crypto represented. After the market crash, the ratio is returning to the "normal" 1 to 1.5 range.
- The relatively steady upward trend from Jan 2018 to May 2018 is interesting. Remember @dpl's post: https://steemit.com/steemit/@dpl/never-hold-on-to-sbd-they-are-being-devalued-at-583-8-annually-48-65-per-month showing that SBDs are being created at an incredible rate. This puts downward pressure on the price of SBD to maybe reach the 1 USD peg.
Looking at this bigger picture shows me that STEEM should continue rising in comparison to SBD. Whether to weight things towards SBD or STEEM in your wallet depends on your methods and goals.
Since I have made it a personal mission to create more content, I'll be putting new money into SBD and then converting it to STEEM power through votes.
Someone who comments and upvotes a lot would probably be better off weighting towards STEEM power and getting that sweet curation dividend.
So keep these broad trends in mind when you are making your buying, staking, and weighting decisions.
And the usual: This is my opinion only, not to be construed as financial advice, consult your broke bother-in-law when making financial decisions, blah blah blah
Hi @nealmcspadden
Agreed. I would do the same if "creating content" is your mission. We are scoring all the way to the bank when SBD is higher than US$1 when choosing the 50/50 payout. If you do the calc you actually see you get paid out a lot more when the price is higher compared to SBD = US$1.
I have also read some other good posts by for your information:
Keep up the great work man.
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Nice!
Thank you.