At times of slower (human) activity on the blockchain, or during times of substantial price drops, it can sometimes be difficult to remain motivated as a content creator. Regardless of the nominal amount any creator is used to receiving for their work, it's normal to be disappointed when one's posting rewards drop by 50% or 75%, even if that still results in a substantial increase from months ago.
This is simply an unfortunate consequence of human nature. Our expectations tends to adjust upwards much more readily than they do downwards. An economist might, regretfully, call it the "upwardly elastic nature of the human demand curve."
One needs to stop back and take a long-term view at these times and remember that if one is posting at Steemit, they should also be doing so based on some degree of faith in the future of the blockchain and Steem itself. In other words, one should be at least speculatively bullish on Steem.
At such times, it is helpful to remember the naturally synergistic nature of the Steem/SBD posting-rewards split. Whether prices are high or low, your rewards will be magnified (either immediately or later,) assuming you are bullish on the Steem price medium-to-long-term. Here's what I mean.
First, a reminder of the basics on payouts. Posts on Steem generally pay out 50% in SBD and 50% in Steem Power (already powered up Steem). 100% SP is also an option, but more infrequently used.
(Note that much of the forthcoming may not hold if Steem/SBD decouple, or SBD is repegged.)
For several months, when the Steem price has been high so has the Steem Backed Dollar. Normally, a high price for Steem means a lower payout denominated in Steem on your posts - at $1 Steem, a $10 SP share payout will be 10 SP, at $10 Steem is is only 1SP. So, a high price means less in nominal Steem per post payout (note: not cash value, nominal Steem payout.)
However, the high SBD has been acting as a counterweight for post payouts - making the other half of much larger than they would normally be. If your SBD payout is $10, it's currently worth closer to $36. It's also immediately liquid, which is a plus giving you the flexibility to either convert it to Steem via the internal (or external) market, or another currency if you wish.
Now, the converse situation is a low price for Steem, which we'll assume (for the sake of making the point less conditional) also comes with a low price for SBD. This renders your liquid payout of SBD rather "low", aka in-line with the displayed payout on Steemit.com.
Yet, this disadvantage comes with an advantage. The SP portion of your post will be priced at the low current price of Steem. So, if Steem is $1, your share of $10 in SP post rewards will produce 10 Steem Power. This is 10x as much Steem as you would have gotten if the price of Steem had been $10, in which case you would have only gotten 1 Steem (Power.) This means you will receive 10x the windfall when price increases than you would have previously, as you'll have received 10x as much Steem (Power.)
None of this stops the trend on Steemit from being one in which posting activity is highly correlated with posting payout...even in light of the fact that there is perhaps nowhere in existence small content creators/writers can be better rewarded. Try getting even $1 a post on your own Wordpress blog via advertising. You'll have to frame your first $1 bill for your office wall, the way diners do - that's how long it will take to turn a profit after expenses.
Sometimes persevering when the rest of the market gives up on a trade can be very lucrative.
We also have a Radio Station! (click me)
...and a 10,000+ active user Discord Chat Server! (click me)
Sources: Google
Copyright: Converse, Steem
Hopefully we spring off the bottom soon I know it's coming :)
Me, too. Im very much hoping. Im so positive for the coming.
Ups and downs are part of life same is happening with steemit .
This is just nature.... Life is an equilibrium of so many factors. Same with steemit
Todo esfuerzo es premiado, ya verás que saldremos de esta.
Ok, I like your explanation and it makes sense. It's been a bit confusing to watch the prices but I feel better about it now. I'm looking long term.
Oh, and since you used a Chuck pic in your post I thought you may like this:
Thanks, I was too lazy to shop that together myself.
I actually made these in real life. This is just a proof because mine are so dirty lol.
Hmm...pics or it didn't happen.
I love your style sir @lexiconical
..Your writing skills are really nice and thanks for writing these things about SBD, it has helped me understand something I have been trying to.
You are cordially invited to a meet up in Nigeria, it's gonna be really awesome.
The details could be easily seen on my blog.
Thank you for the invitation! I'm afraid I'm a half a world away.
Awwwnnn. That's okay, I believe your spirit will be with us.
sometimes you just feel discourage but still have to move on, i hope it rises back up soon.
useful sharing
Good morning sir @lexiconical.
I still have alot of questions regarding SBD as I am kind of new here, but will keep on following you for more explicit explanations such as this one.
My low rank was due to my ignorant use of the introduceyourself tag.
I would love to see more.
"My low rank was due to my ignorant use of the introduceyourself tag."
Yeah, people can be pretty touchy about that here.
very good post & info thank you
Truth. When steem was up I hardly made any sp. Now is totally the time to build it
If you're thinking long-haul, you are correct!
Just timely,mean while i voted you as a witness,actually am impressed with this piece.
Newbies are often challenged by this,you see,after much critical thoughts,just to present an eye catching article,the earning tends to be discouraging and many give up.Severally I faced such,what keeps me on is the enthusiasm of writing.
Thank you, but I'm not actually a witness.
Up until now nobody had been able to explain to me this payouts so clearly, thank you
I wish someone would write a simplistic post about what the numbers mean, I know that makes me sound really dumb but this is all new to me. Like if you have 10.005 steem just what is 10.005 steem...if someone says make sure you leave at least 10 steem in your account at all time does that mean the 10 before or would that be .010, given the above example if I wanted to just leave ten steem if it's the last three does that mean I would subtract it to understand I could use 9.995 and still have ten?...I don't know if I sounding crazy but I haven't came upon anybody to explain the mathematics of it all.
"if someone says make sure you leave at least 10 steem in your account at all time"
They mean 10 total Steem Power, or powered up Steem. You need about this much in your wallet or you can lose your ability to interact with the blockchain. That's $10 worth if Steem is $1, $50 is Steem is $5.
I hope that answers your (totally not dumb) question.
I guess I am a hopeless cause.
i'm just happy to be here most days! :) a blog i don't have to host myself or pay for as such and get financial rewards for making things i love to do anyway, i'm in for the long haul! :)
I personally like the low steem price, would not mind it staying that way for a while, this means I can get a bit more SP together and that will serve me very well in the next years.
Great explanation thanks
Very good post
Share your advice @lexiconical I think this will happen and only the faithful to their projects will continue on the platform. At least I will continue here trying to contribute content of value to the community. Greetings from Venezuela.
Nailed it. After blogging for 15 years I made more monetary value than any other site I started and used ads and affiliate marketing.
i really need your help, because i still small distemmit, please upvode me
Great way to end a well articulated piece "Sometimes persevering when the rest of the market gives up on a trade can be very lucrative."