SBDs for Upvotes: Turning your Steemit account into a feeless Trading Platform
An incredible idea was brought to my attention in a post by @worldclassplayer. His post can be found here. His idea could possibly provide Steemit community members a feeless environment to help accomplish their investing goals.
"Trading SBD’s for monetary upvotes."
If you’re not sure how this would work and why you would want to do this, let me explain.
We all have different investing goals. Some of us are interested in to acquiring Steem Power, other SBD’s while yet others prefer Steem. There’s no right or wrong answer, it just depends on what your investing goals are.
I personally see SBDs (Steem Backed Dollars) as a liquid version of Steem. You can trade them on an exchange for other currencies or trade them for Steem or Steem Power. Their implied value is $1 US dollar, but they’ve been trading much higher than that and have been extremely profitable in the short term. SBDs have been trading as if they’re their own crypto currency, totally separate from Steem. Can this continue? I feel the peg of $1 will be more stringently held to in the future, but that’s why you love the free market, the market will set the price, so you never know. But now that the SBD price has fallen more in line with it’s implied value of $1 US (it’s currently trading at $1.09 US as I write this) some could see SBDs as being an incredible hedge against a down turn in the price of Steem. Nanzo-Scoop touches on this beautifully in his post here and brings up the fact that holding SBD might prove extremely fruitful if they become interest bearing in the future.
So some Steemit community members will prefer SBDs in the short term as a hedge against a downturn in the price of Steem. So trading monetary upvotes, at a price they deem to be fair, might be something that they are very interested in doing.
Others might want to acquire Steem Power to increase their short term influence and strengthen their position as a long term investment.
Others might have goals of acquiring Steem to convert to bitcoin to invest in other currencies or simply convert to fiat to cash out.
What makes a good trade? Any trade that both parties feel are fair and help them achieve their personal investing goals.
Steemit gives us so many options, we all can pursue our own personal investment strategies right from this very platform. The idea @worldclassplayer is putting into play is revolutionary in the fact that we don’t necessarily have to go to an exchange to complete our transactions, we can do it right here on Steemit, without paying any exchange fees.
We can exchange monetary votes for SBD or Steem, and vice versa. Why pay a fee to an exchange to convert your SBD to Steem Power when you could possibly find a more profitable trade with another Steemit member who values what you have to sell. Something is worth only what someone else is willing to pay for it, and that would be determined by the two parties committing the transaction. The only drawback would be that this would have to be done in a virtuous manner, for each party would need to hold up their end of the bargain. I dislike using the term “drawback”, for there should never be an issue, but some folks in this world have what my grandfather called “moral flexibility”, but this community in a sense “polices” it’s self, and if a party did not fulfill their end of an agreement, I don’t think it would take long before their character was well known.
I don’t like ending it on that note, so I will add that I think @worldclassplayer has an incredible idea, and one that could benefit many users. This is just another example of how Steemit and this incredible community is revolutionizing how social media and cryptocurrency is perceived around the world. Great things lie ahead, and I’m very thankful to be here to enjoy the ride.
I'd like to hear others take on this. This concept could give birth to some very creative trading ideas.
(Disclaimer: This is by no means to be used as financial advice. I am an amateur investor and these views are my opinions only.)
Useful Websites for Steemit Newcomers
https://steemd.com
https://Steemnow.com
https://steemdollar.com
https://steemwhales.com
Thanks for the really informative post on steem and SBD, it's making more sense to me to be able to make an more educated decision but as a minnow, I will probably lean more towards raising my SP.
Thank you! For the long term, I think Steem Power is a wise investment.
I wanted to let people know that I have already transacted with @worldclassplayer on two different occasions. I received an upvote as promised after I sent 1 SBD.
Thank you for adding that. He's someone that says what he means and means what he says. An asset to Steemit.