Steem Dollars, US Dollars or Something Else Dollars?
I have now been on Steemit for around 2.5 months but there’s something I need to ask more knowledgeable members of the community.
Source: https://pixabay.com/en/wealth-currency-finance-dollar-3338164/
Take a look at this nice reward I received this morning and more pointedly at the figures.
I’m assuming the $1.85 is Steem dollars, and obviously the other figure of $2.27 is a fluctuating US dollar equivalent value.
The value of a Steem dollar to a single US dollar is currently sitting at $2.31.
Yesterday this value was around $2.85 so I would estimate it to be on the compartively low side today
I read somewhere the dollar value was a 7-day average, yet the lowest SBD has been against the US dollar in those 7 days is $2.05.
So shouldn’t the fluctuating US dollar value displayed at $2.27 be at least $3.70 USD?
I would love someone to explain this one to me!
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I like steem better than USD and SBD. I think SBD will eventually fall possibly to around $1 but I am bullish on steem. We all know the US dollar is going down.
yeah... the whole reward calculation is a bit confusing.
The projected reward of SBD 1.85 will be split into 50% SBD and 50% Steem... and that conversion always assumes 1 SBD to be worth 1 USD in STEEM... and since everything is actually based on STEEM (vests) that's where it get's slightly confusing.
I wrote a post that touches on this subject a while ago... but let me try do give you an exemplary calculation to illustrate how it works:
and then when you put SP and SBD back into USD... that's what you get...
I hope this made any sense?!
Thanks for the response @fraenk. It does make a little more sense.
If the SBD is always pegged at $1 (even though its more), and accounts for 50% of the value, then this will move it closer to the US $ amount of $2.27 that is shown (above). I know more than I did, so thanks for the explanation.
Yeah... it's kind of a weird and unintuitive formula. It would all make perfect sense in a world where SBD was actually worth close to 1 USD as intended...
Maybe I should do another #steemonomics post that explains the whole reward-scheme in detail?!
I'll be up for reading that :)
Glad you asked this. I have to refresh on this every once and a while even though I have been here for a year. Hopefully the new token will simplify it for people. It puts some minnows off when they want to get into this platform!
I agree it can get a little confusing at times... i still get confused by it all lol
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