Seriously guys, sell your SBD at Bittrex and buy STEEM there ... you think external forces even know about the internal market?
If we want STEEM to keep going up, outside money needs to see big green numbers on exchanges.
By purchasing your STEEM at Bittrex you will be promoting the coin and encouraging outside players to buy.
The internal market does not bring any new money into Steem.
You nearly always get a better a price at Bittrex too - the internal market is the lazy option, does nothing for STEEM's market cap and you pay more than you should.
The internal market is dominated by a few big whales who make a lot of money playing discrepancies between the internal and external markets.
If you want to contribute to existing whale wealth, use the internal market; if you want to boost the platform and community as a whole, sell your SBD and buy your STEEM on exchange.
Right now there is outside muppet money paying Bitcoin for SBD!
Take that Bitcoin from the muppets and pump it into STEEM FFS!
Every time you buy STEEM on the internal market, a whale eats a minnow, a dolphin crys and a muppet comes to their senses and realises they shouldn't pay $13 USD worth of Bitcoin for a SBD.
/end rant
pixabay.com
"Take that Bitcoin from the muppets and pump it into STEEM FFS!"
exactly.
As a steemit newbie, I’m curious what stops these whales from participating/influencing the external markets in the same way as the internal market?
They do, that is the whole game - they are doing cross exchange arbitrage. I'm not actually opposed to it in anyway - arbitrage reduces market inefficiencies. I just think if you are looking to buy STEEM, it makes more sense to be bringing new Bitcoin (money) into the economy.
What can stop someone from influencing the external markets in the short term is the length of time it takes to power down
:D
Yeah no one (minnow/dolphin) by themselves is going to move a market, but I mean if everyone did this, there would be a noticeable effect IMO
and on the flipside, those whales who are dumping 10s of thousands of STEEM, wish they would sell that on the internal market and then sell the SBD on exchange - better for their own STEEM holdings and better for everyone!
Fine - you got me @bulleth... :D
Woot! Take bitcoin from muppets and buy STEEM with it XD
I never thought about that before! But I think you are right..
Same here. The only time I've used the internal market is to sell SBD for STEEM to power up. I'm gonna have a look around the market now to see what other tools it has.
That's exactly what we're talking about - do that on Trex!
That's currently the only tool on the internal market SBD/STEEM ... though I believe SMTs will eventually be exchanged there!
I am new to all this so I am going to have to sit back, drink a cup of coffee and think about this for a while. I was told to use the internal market although I do have some Steem in Bittrex. I sold SBD for BTC and then bought Steem. Is that correct?
Yes that's correct - 100% - kudos to you!
What you just did was took someone else's bitcoin and invested in STEEM!
Now you can transfer your STEEM back and power it up ;)
Good for you -- You're learning, bro.
Happy holidays !
New? How are you 59?
You only need a few votes from high rep accounts to get 50+ rep.
I need more of them XD
me too! lol
Easier said than done :D
Btw many of the people on steem are not trading savvy... they are regular folk, mechanics, plumbers, nurses, mums. I think you should make this post weekly and particularly this little thread with tesscooks4u that really spells it out. It would benefit lots of folks here and the community & currency as a whole. I don't even have a bitrex account for example... it's not like there's a manual that come with steemit. Thanks for the pointers, going to go see if I can do this now!
Hey thanks for the feedback, I've never considered doing this as most bases have already been extensively covered - I think the problem is content discovery on the platform is extremely hard, especially old content - it just disappears. Google is great for pulling up old tutorial posts though!
I think there should be 2 rounds of earnings for posts... the short term as we have at the moment and a much longer term for posts that really stand the test of time and continue to be relevant and helpful to other users for the long term. It should be possible to order search results based upon number of upvotes... otherwise we spend all this time curating good content only to 'toss it in the bin' after a short useful life
She been here 6 months
That's what I thought
New? You been here since June...
True lol I been here since June!
Great decision i appreciate this @bulleth
Correct strategy. My friend @xyzashu also told the same thing to sell SBD and buy STEEM.
Agreed by your post.
He's telling you to buy from an external exchange instead of buying it from the Steemit's internal market. And yes, that's a good advice for taking currency mainstream and infuse funds through inter-currency trades.
Thanks for clearing.
Yep if we're going to sell SBD at an inflated price to someone, would rather it be someone from outside Steem. When (if) the dust settles, people who have bought SBD at these ridiculous prices are in for one nasty shock. Hopefully, that never happens though - I personally can't get enough of these post payouts!
Great info...thank you
Really interesting article. I'm a minnow and just coming to understand the workings of all of this. I appreciate the effort you put into writing this. I always appreciate the insights of those who have been trailblazing. I'm going to look at Bittrex for my next purchases and utilize the external market. I'm really not sure why I've been putting it off. Upvoted, re-Steemed, and followed.
I apparently upvoted my own post, too. doh! Sorry about that.
Thank you for the info. I will keep this in mind!
Thanks for this point of view. I was thinking the same thing. Just never really thought it through enough.
Volume
yeah, i suppose you are right, thanks for engaging us in the real dynamics / peace
I have no experience on bittrex since i don't own any other currency other than Steem (and joined a week ago), but aren't there transaction fees on there? I mean, it would suck to lose a certain percentage everytime you make a transaction.
Do you know what would suck more - STEEM going back to 90c - ask anyone who was here a few months ago :D
The internal market is people who are already invested playing hot potato, Bittrex is outside Bitcoin coming into STEEM.
You usually get a better price at trex anyway, fees aside.
I'll check it out with my next payout, and make an account on there, it will eventually be inevitable to not have one i guess XD
Yeah exactly, if you ever want to actually cash out your Steem earnings you need a trex account XD
Yes, I agree with -- I'm for doing buys externally.
Thanks for the advice bro! I admit I've been lazy so far, it's just too easy to exchange on the internal market. But you've made the case for me, I'm going to make an effort from now on and go through Bittrex.
Yes! Take their Bitcoin and buy STEEM XD
VERY MUCH RIGHT....ALMOST DOING SAME
)
(
A great post and a community focused message. Resteemed!
Thanks mate!
I'm thinking you make a good point. How much or little sbd is the minimum you should sell to make the external market worth while? I just powered up internally so I currently have very little. Better to wait a while and accumulate? Or just continue to be whale bait. lol Thank you very much for sharing this, it is thought worthy.
Hey I checked out your posts and with your account size it probably doesn't make too much of a difference - just buy STEEM while you can wherever XD
Thank you for replying, I love my little one and two cents worth, appreciate your taking time. Call me plankton.
Today just begins and the time is 2AM dot here, so this is the most important post I have read today so far.
I'm guilty, always fucking lazy, and then making those whales more richer.
I will keep to your advice because I know what they worth.
Thanks Boss
Resteemed
Thanks Boss XD
All a bit confused by this, I have a bittrex account and trade many coins on there, but treat this solely as a blogging platform to earn revenue that way, not really even sure of the difference between SBD and STEEM?
STEEM powers the platform, it determines how strong your vote is for posts and witnesses. When you do a post, half your rewards are paid out in STEEM and half in SBD (STEEM Backed Dollars). SBD are supposed to be pegged to the US Dollar, but recently there has been a surge of dumb money buying SBD at 10-13x the peg.
When you sell your SBD on Bittrex for Bitcoin and buy STEEM with that Bitcoin, you are taking Bitcoin from outside the platform and investing it in STEEM -> boosting the amount of money flowing round the platform. Where as if you just sell your SBD on the internal market, no new money is coming in XD
The higher the price of STEEM, the more post rewards you get for each post. What you will notice is your pending posts will go up and down in value with the price of STEEM.
Great response, thank you so much for taking the time to post it. I just checked Bittrex too and see that both SBD and Steem are at relative lows with a steep plunges in the last day. This is all very interesting, and I think long term STEEM will have staying power and intrinsic value as this blogging platform is a genuinely valuable thing underlying the STEEM. I am not sure of the value in the technology underlying many other alt coins...
Actually mate there is something not good going on ... when I saw STEEM and EOS down this morning, I assumed Bitcoin was up ... nope ... Bitcoin down ie money leaving crypto -> market cap shrinking :(
Giving this comment some upvote love as it's one of the most succinct and educational descriptions of the ecosystem that I've seen in a while. Many would benefit from reading this comment alone, especially those new to the platform.
Hahaha thanks mate :D
Thanks for the quick barebones rundown. Due to my forgetful nature I shall screenshot your helpful post and make it into wallpaper until such time as it sticks in my head.
Why'd you get flagged?
I made an off colour remark somewhere else, offense was taken, and I've been hounded since.
This sums up what happened if you're interested. Or not.
https://steemit.com/new/@freetrog/the-6-dogmen-of-my-flagpocalypse
(You'll have to toggle through "reveal comments". Lol)
You really touched on an important issue, we need to expose Steem to the world. Thanks for sharing
Can you tell me the processes of selling my SBD for steem at bittrex? @bulleth
Hey mate, just withdraw your SBD to Bittrex and sell it on the SBDBTC market, then you will have BTC and you can use that to buy STEEM on the STEEMBTC market XD
Ok. Thank you.
No worries buddy :)
This is a great point- never thought about it that way. I also noticed people tend to take sbd straight to bittrex instead of steem. Is that also bc it's a better exchange all around on bittrex? Thanks, wren
I think it's usually because you get a better price there + the only way to actually withdraw your earnings is through Bittrex or another exchange!
Right I have been taking it through there, but going internally to steem first which now seems redundant (and maybe like I'm losing some $).
I've never really thought of it like this before, but it makes total sense. Recently at least, I've only been buying STEEM on the internal market and selling into fiat on an exchange. That means that all outside money sees is the selling figures. Interesting.
Also...
lolz.
Yeah you got to switch it up - Sell STEEM internal and buy it external!
VERY VALID POINT. I have been sending my SBD to bittrex at least and selling it off (not for steem lol) but atleast it's volume on the exchange showing.
We need to make this an initiative to spread this word by the whole gang. I will do a post citing you/this later in the week. It's spot on
Yeah mate, was so good to see STEEM roaring yesterday, we need to kick into an all-out uptrend before the SBD party ends!
I was thinking the same mate... some targeted satellite posts on the topic citing this one may draw attention to this important issue. The platform would benefit.
At times like this, a lot of people are selling their SBDs but didn't thought about the effects that may come along the way. I'll start buying STEEM soon! Thanks for the info!!!
You should definitely be selling your SBDs - they should never have traded this high. I'm not sure if it will crash, but don't look a gift horse in the mouth!
This is a pretty good idea. I would take part, but getting confirmed by bittrex would be too much.
However, we have @blocktrades and changely too.
True there is that problem, apparently sign ups at Bittrex are essentially frozen for the moment
I'm probably going to do this with my next big payout.
I had to power down a few months ago because reasons. But if I can get my hands on some more Steem with this inflated SBD price, I'll take it.
@shayne
Yeah I'm on a really small power down, making enough of posts to more than make up for it ... not sure whether to stop the power down or not ... I like how it comes in at same time and day each week ... no where near that organised with my posting!
You have certainly given me a new perspective on this. Just sold a little SBD for STEEM on the internal market found it quite easy. Will look into Bittrex. Bringing in outside $ makes perfect sense to the well being of all. Do have a couple unanswered questions.
When you mention Trex, you do mean Bittrex right?
Second: What is XD?
Hahahha yeah Trex is Bittrex and XD is a smilie reminiscent of someone smiling with their eyes closed ala a Japanese cartoon XD
If you don't already have an account at Bittrex, you probably won't be able to create one as they have shut off signups temporarily while they deal with a support backlog. How an exchange can take fees on that much volume and not have adequate support staff is beyond me, but the bar for corporate responsibility is set pretty damn low in this space!
This makes sense but I've also heard that selling on the internal market is better for the internal flora.
Helps people who are playing the internal smart, kind of like trade within an economy ... but the thing that really boosts GDP is net exports!
Actually people are not lazy. They were uninformed.. because when most posts decided to tell people not to use "conversion" and rather use "internal market", they forgot to mention that it will be more benficial for them and for steemit too to sell those sbds in external market..
I am glad you posted this.. it would open alot of eyes.. resteeming this for my followers..
Thanks JBN!
For me personally it is laziness though - internal market is a lot easier and quicker!
Hahaha, good rant my man!
I didn't know about the internal market being rigged by whales for their own benefit but I've never used it anyway
Ever since SBDs got pumped I've been so excited about blogging here doe :3
So is Steem gonna actually go up like?
I guess that would be the point wouldn't it
Good one. Very amusing but more importantly - true!
Too true!
Lol. I like your analysis. And your graph. In seriousness though, you make a valid point. Even though it seems like much more effort.
Been a bit light on the ranting lately haven't I Choo? How's things with you - been killing this manic bull market or what?
Indeed. Steemit needs more @bulleth crypto rants!
My advanced hodling strategy (i.e. laziness) has served me well lately, yes.
Better yet... use BitShares.
I'll give it a try! I was wondering about the differences inside and out. Thanks!
I am so over my head... This is great info... Bittrex looks like watching bugs in their hive... So confusing!
Wow, that's smart... you're a funny writer as well!
Thos whales look pretty sharky to me :o
Thank you for sharing too...