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RE: HOW TO FIX STEEMIT

in #ethics5 years ago

Not sure where you got that I hated liquidity, I just happened to have powered up most of my stake.

Under current conditions, it is worth doing 100% power up, but that is not always the case. That's why I say it is bad advice to give without clarification.

With 50/50 rewards, Steem will give you 50% in Steem based on the USD value of Steem and 50% in SBD as if SBD was $1 (ignoring market conditions).

If SBD is $2, then you will make 50% less by using 100%.

If SBD is below $1, you will make more using 100% power up.

For example, if your post is worth $10.

You will make $5 of Steem (currently 33.33 Steem) and 5 SBD ($3.55 USD worth or 23.66 Steem) when doing 50/50. (56.99 total Steem).

When doing 100% with $10 post you will make 66.66 Steem.

The main reason behind this is the blockchain always assumes SBD is worth $1.

tldr;

Using power up 100% will yield you more rewards now but it will not always be the case. If SBD is worth more than $1 do not use 100% power up (or if it will be by the 7-day payout).

It will be a long time before this is an issue, but it is important to understand.

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Thanks for your insightful and informative reply!

As a NEWB I didn't realize that my upvote power and my daily action-points were tied to my steem-power. If you want to level-up, steem-power certainly helps.

Also, there seems to be a lot of chatter about steem "inflation" and "dumping" and "burning".

Powering-up your steem addresses all of these "problems" at the same time!

I also wanted that steem logo next to all my posts! It seems to make them stand out a little more in the crowd!

Thanks for the info about SBD. It's a little weird to have two independently valued denominations of the same steem-money.