After pouring your heart and soul into writing a your best post yet, choosing pictures that perfectly catch the mood of your post and picking 5 insightful tags there is one final decision to make before you post.
50:50 or 100% Power up? lets face it no one really chooses decline payout!
At today's prices you would get about 30% more for you post if you choose the 50:50 option and immediately convert your SBD to Steem.
SBD
Steem Backed dollars or SBD are one of the most impressive innovations of the Steemit platform in my opinion. SBD is a counterparty free asset that is worth about 1 US Dollar. The idea is that market forces automatically correct the value of SBD so that it is always trading at 1 US dollar in value. It takes the volatility out of Cryptocurrency which is a good thing and the innovation of not having a counterparty backing it means credit risk is reduced.
In contrast consider what happened with the UDST in recent months. It's back at parity now but market forces built in a discount as there were concerns over the credit worthiness of the backing institution. In short there were worries there would be a run on the bank.
Market Forces
In recent months SBD has been trading above 1 US dollar which means that market forces should act to drive down the price in the long run, back to 1 US dollar.
Which Payout Option to Choose...
When you get a payout from a post you get the value either in;
- Steem Power if you choose the option to power up 100%
- or a mixture of 50% Steem Power and 50% Liquid Steem if you choose the 50:50 option
If the price of SBD is above 1 US dollar, to maximise your returns, it is better to choose the 50:50 payout option and when your post pays out you can convert your liquid rewards to Steem or Steem Power manually. This is the market mechanism that should drive back down the price of SBD to about 1 dollar in value. It's a bit manual but can increase you post payout significantly.
On the other hand if SBD is below 1 dollar you would maximise your post payouts if you choose the option to get a payout 100% in Steem Power.
Many thanks to @deanliu who brought this to my attention a few days ago.
@bitgeek has provided some detailed examples of his recent payouts and how they are broken down between Steem and Liquid Steem in a recent post 50/50 is a better Payout option right now!
SBD or $
One final note for reference. The price quoted in the markets tab, on www.steemit.com is SBD. It seems at first glance much lower than what you would get on Poloniex but that's because the trading pair is Steem and SBD not Steem and USD or SBD and USD. There may be a small difference but it is not that big at time of writing. The savings in this post are based on todays fx rates:
- 1 Steem = US $2.08
- 1 SBD = US $1.62
Thank you for reading this. I write on Steemit about Blockchain, Cryptocurrency, Travel and lots of random topics.
Image Sources https://pixabay.com/
Wow. You are really good at this and understand the market really well. I now get the exact reason why we have sbd. Just a question; i want to cash out, is it advisable for me to use the market or convert it through the 3.5 days payout
That is a tough one to answer as it depends on whether the price is going to go up or down in the next 3.5 days. When you go to convert SBD to Steem you get the following message which I think sums it up nicely
Amazing of you to share with the community this priceless piece of information.
I'm not sure if it's better for the abs itself to trend above 1 or drop to the 1 $ peg.
Hopefully steem price will rise soon.
Cheers and much love :)
-Goldie
We are all hoping for the Steem price to go to the moon :)
Thank you for commenting, I think the steem price at $1 makes more sense as it gives stability and certainty for those that require that. If you want to benefit from increases in the value of the currency you can invest in Steem or Steem Power.
@eroche thanks for a detailed explanation of the payout structure. I already knew most of this information, but I thought you presented it in a ver clear and concise manner. This will be helpful to many Steemians out there!
Thank you.
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This post received a 40% upvote from @randowhale thanks to @eroche! For more information, click here!
Very informative article thank you
That's how you do it, the secrets out. Great breakdown! 🙌🏼🙌🏼
Upvoted because I'm trying understand the financial aspects and what to do when I gain some Steem dollars - I'm still very new at this
If you think Steem will go to the moon, convert to Steem or Steem Power :)
I see you are new to steemit, welcome and feel free to ask any questions and I will be glad to help.
Thank you - that is much appreciated @eroche
Pretty helpfull
Great Article! Upvoted and resteemed!
That was an awesome lesson in crypto-arbitrage!
thank you for this very valuable information :) enjoy your day! ;)
Thanks for reading. Its a lovely sunny day in Ireland so I am enjoying the Sunshine today :)
that's nice :)
Thanks for this @eroche. Cleared something up for me :)
Thanks :o)
Posts like this really help this minnow out.
Woah thanks you are really good at this
you cleared many of my doubts
Thank you eroche appreciate the knowledge you have
I noticed that too. The 100% option doesnt reflect up to 100%.; always wondered why, thanks for your insight
Thank you for this information. I have been struggling to understand this.
Very interesting and straight foward! Payout options are always a bit confusing to me...thanks for the article!!!
Thank you.
Very good. I would like to see more articles on the mathematics of various blockchain algos. Thanks
!-=o0o=-!
To follow curated math content follow @math-trail.
If you wish @math-trail to follow you then read this article.
There is some interesting stuff out there already, but it gets technical very quickly. There is a level of complexity, necessary complexity in the structure of Steemit which can take a bit to get your head around but give yourself time and the light bulb will go on.
Thank you for the comment. I will check out @math-trail as I am very interested in this subject. Thank you for the link.
Yes, there is some interesting stuff but need to catch it within the 7-day period. I will also start a list of authors so that new people can go check out their most recent articles.
As I've said in other comments, a lot of mathematics takes place outside the #mathematics tag, such as in programming etc.
!-=o0o=-!
To follow curated math content follow @math-trail.
If you wish @math-trail to follow you then read this article.
A good article showing when to use 50:50, and when to use 100% SP as your payout options.
Thank you.
Resteemed! Very informative few things that make much more sense now after reading this.
Thanks for your support as always @mallorcaman, and thanks for the resteem.
Well said man! Thank you for simplifying it for newbies like me.
Cheers, thanks for reading.
Cool info
Thank you.
Thank you for the advice! I'm still new to the platform except lucky for me the default setting is 50:50 so looks like I've accidentally been doing the right thing
Glad to help, welcome to Steemit by the way.
Thank you very much for this post.
Your welcome
Thank you for this very useful information. I choose the 50-50% option, because I withdraw my revenue frequently - once or twice a monts. I almost always convert my SBD to STEEM.
Interesting, I was powering up 100% till last week. I missed out on some post rewards :(
Thanks for the breakdown. It's always nice to get the latest about how best to choose our options.
It is, the thing is it can change from time to time so you need to keep your eyes open. Thanks for reading.
You really know the truth.
I've Upvoted for sure. happy to meet you in this big family.
looking forward to your next post.
You can follow my food blog to know more about me @fatkid
Ill check it out @fatkid, thanks for reading.
I've been doing 50/50 for a while. Need to look at places to spend some SBD
I am sure it wont be long before more places will accept Steem and SBD. Bitcoin doesnt seem to be accepted as widely any more as before. I wonder will Steem take its place for retail?
I really hope so. It has definite advantages
I still don't fully understand these settings. Right now I have everything as set by default, is that ok?
It is, for post payouts I would recommend 50:50 at the moment. When you get paid you will see your account get some Steem Power and some Steem Dollars (if your post got some money)
You should then convert your Steem Dollars to either Steem or Steem Power to maximize the value of the payout of your post. Here is a link from some time back where I explain the difference between the 3 forms of Steem which you may find useful
i wish you could do 100% steem dollar payouts... haha
I think that would be a nice option, but not sure it would work. The whole system is quite finely balanced. Each of the 3 assets, Steem, Steem Power,Steem Dollars and the 3 payout options serve a purpose
I just hope that steem dollars are fixed. Would be good to have them be worth what they are meant to be.
Insightful post. Never really understood which was better 100%sp or 50/50
Eroche, I'm going to be honest ... I don't get it and I'm smart! I will keep on reading it maybe at any given moment my brain will go ding ding ding! Hope your enjoying your weekend!
Having a great weekend, I was just at a Steemit Meetup in Dublin Last night and there were lots of new steemians at it which is great, and its great getting to meet some people in the flesh.
That sounds like so much fun it sounds amazing I'd like to do that to . I'm glad you had a great weekend I'm having a pretty good one to . Going to the movies today and out to eat for fathers day you have a beautiful night🌙🌠🌚🌃🌉
If youre going to ask, do you prefer SBD to stay at 1USD or like the way it is? I dont understand about the economy of this and its result to steemit.
I think its better if SBD is stable. People who then prefer to store their value can do so without worrying its going to go up or down.
It helps with planning, with business and commerce. For example someone could quote a price in SBD of 1 Dollar for selling an item. If this value can be worth more or less than 1 Dollar then they need to keep updating the price. Its quite messy.
Thanks for the input.