One of the particularities of the Steemit ecosystem is the existence of a "stablecoin", Steem Blockchain Dollar, which exists "on top" of the main currency of the blockchain, the STEEM. I used quotation marks because SBD is not really a "stablecoin", because it's not hard pegged to the USD. Instead, it uses a "soft peg", being denominated as "$1 worth of STEEM". Even in this situation, the presence of a "relatively stable" token in parallel with the main one offers a lot of interesting opportunities.
Lately, SBD went back towards $1, but at the same time STEEM seemed to engage in a downtrend too, and it may even go under $1. At this point it will be worth less than 1SBD and that will generate a few interesting situations.
Here are just 3 of the things that may change if STEEM will go under $1 (just want to tell you first that I was on the platform even when STEEM was traded for $0.16).
1.. Conversion Of SBD May Be More Profitable Than Market Price
There is a "conversion" option in the blockchain (which was taken out when SBD went way above the peg) which makes conversion of SBD to STEEM after a period of 3 days. This may prove to be an interesting alternative if STEEM goes under $1, because it may translate in a better price for STEEM.
2. You Will Get More STEEM Than SBD In The Rewards
Yes, that's a positive, if you ask me, because you will get some really cheap STEEM. I still remember when I was getting around 5 STEEM for 1 SBD.
3. A Lot Of Pressure Will Disappear
There is this psychological level, where STEEM is worth more than a dollar. If it goes under, it somehow feels like it doesn't matter that much. The perceived value is dramatically less, even if it's just 10 cents under $1. But the immediate effect is that you're not that focused on the reward, and more focused on the interaction. A lot of the current pressure will disappear. It's a good training.
All in all, I don't think that STEEM trading under $1 will be a tragedy. I've been there before and I know how it is. There is value to made in any context, if you really want to contribute.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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I know the feeling. That's why I created steem.supply, an easy to use and accurate tool for calculating your Steemit rewards |
If Steem goes under a dollar I doubt we will have that much interaction around here. Ever since it went under three dollars some "faces" started to fade. BUT I would love to buy five Steem for one SBD.
Did you not see when it was 6c? I think making anything is good and what I made then is worth x20 even now.
When I joined Steem it was $7 I guess, but I see your point. When one really trusts in something it doesn't matter what the price of it is at the moment. It's the matter of perspective.
Of course if you bought it then it's sad to see the price go down. I count it as free extra money.
Haven't bought it. That was the price of the Steem when I joined. I only invested time and energy in the platform and probably that's why I am still around.
no worries bots probably keep the interaction w/ each other to cover their server expenses.
Yeah..bots. Another endless story :)
Summer might just be time, when people spend less time on the internet and more in the nature...
Definitely some good things to keep in mind as there has been alot of downward pressure on Steem's price as of late. Even more so than other cryptos as its total market cap has gone from around 26th to 36th now (source: coinmarketcap). Thanks for the info.
Upvoted/resteemed
I dont know if you've noticed of lately, many accounts are becoming dormant by the day, setting there accounts to smartsteem, delegating and all that, thats what happens when an sbd is to one dollar
I know a lot of people are really disheartened by the lower prices, especially after we had seen the higher prices, but I really like it. It means that SP is cheaper and I can get more for my payouts. Yes, the payouts are smaller, but they go further. I'm powering up and in it for the long-haul, so low prices are a good thing.
okay, so these 3 points are really in our benefit, but what about those people, who have bought steem for above 5 dollars?
If youve read his previous post on cryptocurrency investment, youll know better. To every investment lies a pump and a dump.
yes, i do agree we will start getting more steem, but I don't think so big whales will allow this to happens, some people are saying that in the end of 2018 steem will be trading on 10 usd, what you have to say about it sir?
I really don't know what is going to happen or what is not going to happen but i am hopping for good things that are beneficial for his platform.
Even if it goes under one dollar it will be business as usual for serious steemians :-)
Still the other points make a lot of sense in terms of dealing with such a scenario. Although I am not so sure that it'll go down but its always good to be prepared.
Yeah...and we will get to know who are here for the long term and who just here to make quick money(fair weather ones)!!!
Interesting article, with very informing points.
My question is for example if you're betting that steem will be worth less than 1$ in the upcoming weeks and you at the moment have 100 Steem not powered up, will it be better to exchange it in the internal market and get SBD and later on when steem reaches lets say 0,80$ the SBD you have since they are pegged to "$1 worth of STEEM" i can get more steem by exchanging them on the internal market...i don't have know if i made my question clear?
good info sir.keep it up.its essential news for us.thanks for share
That "Steem under 1$" thing really paints a sad future for the people actually working on applications on the Steem blockchain and relying on a decent Steem price to sustain their effort. Not a lot of pressure disappearing there, it just gets higher and higher.
If you're already mentally preparing for that dip, then it's probably going to be bad. I trust your instinct about this stuff.
Well it will be intresting to buy some steem. I think many of peoples thinks to buy steem lower than the USD 1.5
Golden time to get some steem, where steem getting lower.
Offcourse the conversassion of steem will be more profitable then steem. But its not going to be happen. There is this psychological level, where STEEM is worth more than a dollar. If it goes under, it somehow feels like it doesn't matter that much. We strongely hope Steem will flew toward higher than today and yesterday.
Thank you sir how are you alhamdulillah i am fine every post I like my post is very much like your post i can learn new things from your post so hope you post your post when you post
Well this is really interesting. And the point where we see we'll be getting more steem than SBD.
Well i hope it won't happen it already is in unstable pace and minnows are just barely survivng.
I hope it goes higher and higher and then the chance arises again.
Yes these three thing are really changed.
But i think steem is go up again.
more steem is always welcome hahah that will be a interesting scenario not likely to happen but anything is possible in crypto
Very informative content there..
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I joined when Steem was ¢90.
The fourth thing that will happen is that; I will convert some fiat to steem too.
But steem is still a very stable coin, it is not that much volatile like other cryptocurrencies are. It really maintains its value with market to a certain level.
Seems like there's always a need for perspective, isn't there? And there are opportunities in both the ups and downs of life. If STEEM is high, we can feel good about our investments. If it is low, we might decide to buy more, obviously with the idea that will go up and again and not continue to spiral down or even flatline.
I have to say, though, I wonder what it will look like here if STEEM is under a $1 USD. As others are pointing out, there are already people leaving, so it's not likely to get any better while the prices remain low.
Or we could just blame it on summer in the northern hemisphere. :)
Really!! Really!!
Man ; say it in other words.
If steem goes under 1 USD then many rich people here " steemit supporters " will be screwed...
And if these rich people screwed then we small members will be " dead ".
But I will inform you one thing here....These rich members including the owners of steemit and the"share holders" will do anything and i mean it to protect their money from being downgraded...
I will support them by all of my force... my 530 steem is more valuable in my heart and mind than my " life "...
So do you think a members like...... at which they have invested here 1 million each will let it go like this...!!!
😉 No they will not.... And we all will support them to keep sttem higher than 1 USD.
I LOVE YOUR WAY OF WRITINGS AND YOUR WAY OF THINKING AND I AM A FAN OF YOUR ERA.... BUT I am not with you in this direction
Samer
red-rose