Understanding the relation of STEEM vs. SBD is a very important thing in Steemit. Their ratio can create a big impact on your earnings and understanding their relation will be help you increase and maximize your earnings.
In your earnings from your posts, have you ever wondered how did they compute SBD & Steem Power rewards? That is exactly one of the things we will tackle in this post and how do you maximize it. This may be basic to Steemit enthusiasts, but this will be helpful for users who do not dwell much on technical things.
Also, the ratio of SBD to Steem will be helpful to increase your earnings. I meant the word "ratio" as the number of SBD's needed for a single STEEM. We will take advantage of the volatility of Steem, since Steem Dollars are US-pegged tokens. I meant its value is approximately $1.00 only.
I actually made a post regarding taking advantage of the price of STEEM when its value is low and I want to repeat it here. The reason is that it is happening now! Upon checking, the value of Steem is at $1.21 each, unusual of its $1.50 value during the past days. Also, I saw @timcliff's post regarding the payout distribution of SBD's in your posts + conversation with @themanualbot made me understood your SBD post rewards and how to maximize it.
Maximize your Post rewards
Let's make it direct and simple. First thing is you need to look on the current market price of Steem Dollars. You can look it on coinmarketcap.com or at coingecko.com. Look on the value of SBD if it is greater or less than $1.00.
Its value is your determinant on what to do next, because Steemit has a always the ratio of 1:1 for Steem Dollars to US Dollars. No matter what price of SBD is, its value in the internal market is always $1.00. This is the thing we will maximize.
Take a look on the payout, normally the distribution of rewards is like this. 80% goes to author rewards, and 20% goes to curator's rewards. This 80% will be divided into two (50-50) - Steem dollars (SBD) and Steem Power (SP). That means :
I normally use 50-50 reward payout. In my $24.38 payout reward, $12.19 is in SBD and $12.19 SP in rewards. These dollar values are in USD. Steem Power rewards will look on the current value of Steem in the market. If the value of Steem to USD is at $1.20 (assumption). Then SP rewards will be 12.19 / 1.20 = 10.158 SP. But in the case of SBD, the internal market will always look on SBD to USD ratio of 1:1, which means you will receive 12.19 SBD. This is the case we will maximize.
What does this indicate?
If the value of SBD to USD is at below $1.00, it is best to POWER-UP your posts. Powering up means you will take your rewards in Full SP. If the value of SBD to USD is at above $1.00, it is best to have 50% SBD - 50% SP on your post. This simply mean you lose some of your earnings if SBD < $1.00 as Steemit internal market will always look to it $1.00.
Maximize SBD to STEEM ratio
Simply look on the ratio of SBD to STEEM. RIght now, their ratio is at 1.23, which means you need 1.23 SBDs to have 1 STEEM. How do we maximize it?
STEEM is more volatile than SBD. I've mentioned before that Steem Dollars is a US-pegged currency token - approximately at $1.00 each. We will take advantage of the volatility of STEEM. I've always noticed on the past weeks the value of Steem and it has always been changing from $1.10 to $1.50. If the value of Steem will be at $1.10 or closer, do not hesitate to convert your SBD's to Steem. Wait until the value of Steem is at $1.50 and assured an increase of more than 40% on your earnings! :)
Always be vigilant in the price of STEEM, it has been mentioned by @jerrybanfield that Steemit will fly to the moon. I consider Jerry as a crypto expert, and I believe in his thoughts about this. Also, the future of Steemit basing on its platform dictates its potential !
Thanks for dropping by!
I appreciate if you put your comments and thoughts on this post. Your feedback is essential.
Finally I found a good explanation for SP reward! Thank you!
Great explanation👍😊
thanks for the detailed explanation...good share...
Hey thanks that's pretty useful information for us minnows
Thanks for sharing this one sir.
nice tip. thanks.
This is one of the best posts I read on here...this helps to explain a great deal.
I have been accumulating my SBD...not that I have a lot but it makes sense to convert it when the price of steem is down.
I will do that here shortly if we progress much lower.
Ohh that's a very informative post. The way you explain is just incredible. Love it.
Very informative post. Thank you for sharing your knowledge. please upvote and follow me i really need help growing on steemit..
Very helpful especially to me. :D thanks master for making this.
I get it.
Thank you. that was very helpful.
And yes @jerrybanfield is like a SteemGuru of sorts.
His kooky hat should become a STEEM icon.
Like the dog or the car in the game of Monopoly.
Classic Jerry.
hmm. I think I got it. But better read it once more. :)
Thank you for that explanation. :)
Might come back to read it again.
Very very true. Keeping it in steem seems like an investment.
Great explanation @jassennessaj but doesn't it take 3 days to convert steem dollars in to steem ? When we convert it takes the price of the moment we started the convertion proces or will it change at the end of the 3 days value ?
@jassennessaj Thanks for sharing :-)I am following
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Best of Luck !.
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STOPAwesome write up
Simple yet effective way to explain how SBD AND STEEM works along with the rewards. Thanks for the info. This is great stuff for a newbie like me.
Yes, i bought some Steem this morning with SBD because I saw another post mentioning it, good deal! new follower (-:
Great explanation
Seems like both steem and SBD are up and down like a yo-yo so where do you get the idea steem backed dollars are pegged to the usd ?