Warning! The price of SBD is falling too low. Witnesses! We need to start increasing the interest rate. I've just set mine to 3%.
Steem citizens, please start making 100% powered up posts if you can. There are too many steem dollars right now.
(meme pic from memecrunch)
Is converting my SBD to STEEM a good thing to do now? Will I get a good deal using the internal conversion system?
Must...have...more...STEEM...POWEEEERRRRRR!!!!!!!
gif via giphy from DBZ
your comment is obviously fake, there has never been a SSJ3 Vegeta...
Time to buy lots of SBDs xD
This comment has received a 0.12 % upvote from @booster thanks to: @shehryar.
I don't consider it much to worry about, I am much happier with SBD at $0.95 than at $2.00, hopefully we can keep it between $0.90 and $1.10. Would be massive to have a stable currency in the crypto world.
Good job adjusting the interest rate I think we will see sub $1.00 for a week or so with all the people turning off 100% SP to take advantage of the high SBD rate of the last few weeks.
Will follow to keep updated
Well sure, you don't have to worry about it. The reason why SBD "magically" is worth one dollar is because witnesses take action to insure that it stays within the desired range. We can't just sit back and do nothing.
Why are they doing it? I can't understand. Can you please explain if you don't mind?
Why do they keep SBD (Steem Based Dollar) close to one USD? That's part of our job. The Steem Based Dollar is supposed to be worth one USD.
Well that explains it. Thank you. :)
And that comment right there is what just got you my witness vote @neoxian.
Ok. If a whitness is calling the Steemians, we should hear!
why don't we just buy from polo transfer here than convert to steem 9%
I always power up all my steem hiyaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
Power that shit uuuuupp!
Amen to that buddy, amen
great idea =)
Welcome, keep steeming buddy
will do ;)
thanks
Great success
Upvoted and resteemed to SPREAD THE WORD LETS all work together!!
Ok done did some 100% posts !👍Let us know what else we can do🙏🏻
feel soo bad...
Don't feel bad, just be aware.
Thank you for the warning
Thanks @neoxian for highlighting this impt point for us all. Really appreciate your efforts and role as a witness.
@neoxian, it is not only SBD that is falling, all cryptos are falling. I believe the price will go hope, but don't just know how fast or how slow the recovery will be. It is better to follow your advice for now. Thank you
Time to save sbd and waiting for increasing price...
Now this is an important post, so I guess it's time to 100% power up my post. @neoxian, thank you for the heads up and im going to resteem this post. I appreciate you as a witness. Steem On!
Switched to 100 percent a couple of days ago.
Good job!!
Thanks, I am new to this. Good to see this but How does it make difference? Thanks
Yeah. people should now at least make 100% powered up posts. The value of SBD has become too fragile. Whole crypto market is falling . I think the reason is Segwit implementation in Bitcoin . And it's affecting the whole community of crypto investors.
Everyone is waiting expectantly to see what happens with BTC. Everything could keep declining for a while, or LTC could take the reins and push us further up. Either way, it is likely that after the bitcoin transition is resolved, everything could skyrocket even more later in the year. For many of us, we're looking long term (1-5 years or more) so we just keep calm and STEEM ON!
It's time to invest in our accounts =)
exactly...
I AGREE SIR!
I STARTED LAST WEEK!
DID A FEW ONES 50/50 and NOW IM BACK on 100%!
Thanks for the warning!! i will make that 100% up
Thanks for the warning! If I may add, hodl your SBD guys :)
Exactly. One of the reasons SBD is falling is because of naive Steemians who choose 50/50 and then convert their SBD to STEEM at these prices because they don't know any better!
It's not naive its genius, the ones who trade off sbd for Fiat cash, they're the ones flooding the markets
i can't do anything @neoxian
You can do it!
yes i can try @neoxian
Appreciate the heads up! 100% SP it is.
Poor sbd. It will skyrocket when the gates open again on poloniex.
Too many steeeeeeem dollazzzz, burn them all :O
Good to see a witness step up! Keep up the good work buddy :] RESTEEMED
Thanks for the reminder, I knew but forgotten about changing it to 100% before I posted the past few posts.
Very nice calculations, you raise a good point
worth resteeming!
This is normal. SBD is supposed to be pegged to within +/- 10% of the USD. So it's actually considered normal behavior to fluctuate between $0.90 to $1.10.
The overprice of up to $2.17 that we saw is actually not normal behavior at all. I expect it to stay at the $0.90-1.10 range for a while, if not just from now on.
I agree, but this doesn't happen by magic. It happens because witnesses do the right thing to help make sure that SBD stays in the desired range.
For sure. More than anything this was a response to the new people who might not know that info. Of course I know you knew it. ;-)
I dont understand the logic, what witnesses do? raising or lowering the interest for sbd? who pays for that? the witnesses ? is it like raising the dividends to make steem share more atractive?
I mean, is that the only tool to try to maintain the sbd within the expected range of price ?
btw, voted and followed !
They can raise the interest rate that the system pays you for holding Steem Dollars. This encourages people to hang on to their dollars and not just dump them.
Thanks for that heads up. I'm new here so I'm hear to learn more about this platform.
I do steem posts and mine another which I will not say here-but not to any deal of significance. That said, I feel bad for the investors. I know what taking on heavy losses is like. But really what tangible value does cryptocurrencies really have? kind of like investing on market psychology with nothing to back it up. Tokens from no where that magically has values cause of market psychology. Kind of like paper money, but the federal government forces a demand on that through taxes. I'll keep what little I have in crypto since it is all free anyways, and watch it for the learning. SDB will probably recover, but if the internal markets fall further I'll probably convert what little SBD I have into more steem.
I really am not sure how issuing an interest rate on SBD would help. that would seem to dilute the SBD and weaken it.
It would make people hold on to their SBD so they can earn that sweet interest, rather than just dumping it all.
In a more traditional sense. If a company has say $80, and they have 4 shares each share is worth $20 book. If that same company splits the shares (into 8 total) the company is still worth $80, but each share is worth $10 book. Issuing interest for holding cryptocurrency is basically the same principle. Any short term market value gains, which does happen, are all psychological with cryptos. with traditional companies you can look at the companies financials and make estimates about a future return-but I don't see that you can do this with cryptos.
If, however, we suppose that the interest payments are to be paid from existing crypto held in the steemit "treasury" that would otherwise be off the market, it is essentially the same principle of printing off new shares. And supposing there was a "treasury", it would be better if the company was selling off SBD at higher prices to acquire other investments (USD, gold, silver, land) and develop a tangible book value than selling off low or heck even giving it away with interest. Even though selling new shares when high is a better idea than giving them out, the market tend to be mixed about what would otherwise be form 424(b)(4). Sometimes selling new shares gives a dying company life saving new capital and a second chance, sometimes they allow institutions to cover shorts and naked shorts and seems to create the appearance of an upper cap on a security and downward pressure on a security. But many have said they want SBD to be mapped to the dollar, and there was no previous means of doing so.
ready to execute. Power up to 100%
Yes, we need to power up all posts.
Yes 0.91 it's too low when the last week the price was 1.47
Forget 1.47. Two weeks ago it was 2.44!
And that was an anomaly. It's most certainly not supposed to be that high.
Yes price of SBD is falling thanx for advice.....
I agree and I power up every post unless it's a decline payment :)
Thanks for this heads up!
@neoxian, can we set our own interest rates? If so, how?
"We need to start increasing the interest rate. I've just set mine to 3%."
It is possible for the system to pay interest on SBD that is held in your account. Lately it's been 0%. This interest rate is determined by the witnesses (mostly the top 20 witnesses). They should set their interest rate to something higher. I'm a witness too, so I set mine to 3%.
@neoxian, thanks for the reply and further explanation about the interest rates.
I always noticed "Tokens worth about $1.00 of STEEM, currently collecting 0% APR." on my wallet screen, but I was never sure how the interest rate was determined.
He's speaking to the other witnesses.
https://steemd.com/witnesses
Thanks for the clarification. I just reread the article and see it now.
I'm a bit confused? SO you can transfer sbd to savings and get interest payments?
@ryan313 - Yes, if the Steemit interest rate was more than 0%. That is what @neoxian is asking the other witnesses to consider.
Great that you're noting this. The price has been dropping and dropping, but I figured at some point it would stop where it was supposed to be. I don't really know what you mean with the increased interest rate, but I don't have to as I'm not a witness. I'll leave that part up to you :-)
Bitcoin setting up for a strong move lower belowst $2000 so I would 'expect" the price of all cryptos to follow the price of bitcoin. Bitcoin price could get cut in half from teh current $2400 and it will STILL be in a bubble. Once the stock market begins to crash out taking the Silly Conn Valley backing away, then we will find the price of "true" equilibrium for bitcoin. I figger that will be somewhere below $50/coin on bitcoin. Basing my opinions solely on the "sentiment" that drives price in the markets. A nice drop of $1000 would likely generate some "fear" for the first time since March. Don't "expect" much upside until all of the locals who are so "high" on teh future of STEEM are all blogging here in wild wonderment >>> "WTF just happened?! And will I EVER get even on my Bitcoin buy at $2500?!!" :-) The sheeple are so much fun to observe. Don't you agree?
Wut
I track various markets by gauging "sentiment" and how it is affecting price at any given time. I mainly use the U.S. exchange traded bitcoin tracker GBTC to track the fortunes of bitcoin. I'm still holding in a full short position in my "mythical" GBTC trading account. Longer term bitcoin gets crushed. And it isn't even close to generating a buy signal as of yet. You can follow my blog if you want to find out when the next buy opportunity sets up. GBTC will control the price of bitcoin going forward. Yes, bitcoin is a bubble. I'd be careful with sell stops as there is always a chance the computerized trading wizards "controlling" price will do the same thing they did with ETH.
Wow, I feel like I lack so much knowledge to even contribute to that particular conversation. All I know is I've seen many coins lower these last couple of days, which is as far as I can get! Seeing, but not really understanding why :-)
It's a pretty simple concept actaully. The price of anything you wish to buy is a function of your own perception of "value." Most of the bitcoin advocates say >>> "Bitcoin can't be in a bubble because everyone who I talk to about it has no idea what bitcoin is!" That of course is immaterial to value. If everybody who wants something already has it, then price will react to the downside. It doesn't really matter how big the pool of investors/buyers is. Sentiment indicators tracking bitcoin prices were predicting a move lower for weeks now. When price dropped to $1880 as the low over memorial day weekend, and even the local bitcoin price technical anal-ysts didn't get their buy targets hit, even they capitulated on teh frenzy to $3000. If I was a first time buyer I wouldn't even consider buying a single coin until 90% of the commentary on the steemit blogs is a steady stream of sheeple boohooing their misfortunes. Then you will be investing solely on "sentiment"...buy when people are crapping their pants. Sell whenever Dollar Vigilante is breaking out the champagne and cigars. :-)
Dollar Virgil going to get people absolutely crushed over time. It's one of my main missions here. I will single-handedly take this clown dooooown. You can follow my spews about future price of bitcoin at my blog. I update when necessary. Currently still holding a "maxi" short position.
better yet. Go purchase steem power.
@neoxian,
Yeah you are correct my friend! We need to be power up and hope this price drop will be over soon. Until then we should tight it up! Thanks for the guidance!
Cheers~
3%! Now that is an incentive to hold
Hey @neoxian, I wouldn't consider this issue critical in order to call for some urgent actions.
SBD in the first place is a cryptocurrency and thus is moves together with other cryptos depending on the current market conditions. SBDs are traded both at Bittrex and Poloniex, hence many regular investors, who have nothing to do with Stemit, hold some share of them. And I think you've checked coinmarketcap.com today and you've seen the same picture as I did:
It's a red day, which continues the 4th day in a row and SBDs are holding pretty strong taking into consideration their low market cap of only 3.1 mil. USD. Some investors are getting them off their portfolios, thus causing a drop, not a big deal.
What's most important, SBD's are pretty well backed by Steemit community, the site saw around 5000 new registrations yesterday. We'll see their price come back to normal soon.
In my opinion, the best thing to do right now would be just to develop the community like it's being done for over a year already. And doing our best to ignore the "upvote beggars". because they are cluttering all the feeds on this site!
Sure, but my point is that Witnesses can be slow to change over. Many of them are still in "combat high price of SBD" mode when they should be switching to "support SBD" mode.
Resteem . Value for Value
Does it predict that steem will fall below 1 dollar?
It's a bad sign, but not necessarily.
While a crucial warning, thanks for this post it clarified some questions i have about the steem economy!
I'll do what I can. Powering up my posts. Second time I've written this, my first comment has disappeared.
I have powered up from day 1 and continue to do so at least 1 year from now one
Thanks for the info
Seems like now is the time to buy