If my fellow Steemians can give this a read and help me as well as others out then that would be great. The more we all know the better we are at educating others.
I've been looking more into these and what the benefits of each are, and of course they all have their benefits., and depending on what your plans are, each has it's own advantages over the other
So if I'm wrong in anyway then please correct me on this because for a fairly new user this can be a little confusing at first but the more I read up on them, the more I am grasping what the uses are of each, unless of course you correct me.
SBD (Steem Backed Dollar) - This will always be around the same value of $1, so if you were to keep saving these up then it means that if say in a years time, for talking sake of course, you collected $100 in SBD, then you could cash out roughly $100 and transfer it to your own bank account.
Steem - This is the currency of Steemit, and you can use it in the Steemit marketplace, trade them on the market for dollars ($), to where you can either withdraw into your own bank account or after transferring to the dollar ($), then you can buy whichever other cryptocurrency that you want to.
The reason why you wouldn't want to do this of course, is because if you are as confident as me on the future of Steemit, and you think that the current value of $1 per Steem currency will increase to say, for talking sake, $10 in future, then if you converted all of your SBD (Steem Backed Dollars) into Steem and you had, say, 100 Steem, then you would in fact have $1000 worth of Steem. Or say Steem hit $100 per Steem, then you would have $10,000 worth of Steem.
SP (Steem Power) - This is where you can earn on curatation, which means that every time you upvote, like, comment or resteem (if someone could confirm with resteeming?), you can earn money on these. And the more SP (Steem Power) that you have then the more curation rewards you will get. So if you are an avid upvoter or you comment a lot on posts then this is where you will get rewarded.
So say for an investor, if you thought the future was bright for Steemit, then you would want to convert as much to Steem as possible, in the hope that the price shoots up.
If you thought that the price may fall to say 20 cents per Steem, then at the moment the price is like a dollar ($), so, for now you would want to keep transferring your money to SBD (Steem Backed Dollar) just in the event that the price of each Steem falls to 20 cents.
If someone can confirm the benefits of Steem Power (SP) then that would be great because at the moment the main benefit that I see is that you are more influential in terms of when you upvote someones comment, then your upvote counts more than before e.g. 1 cents at one point but with more SP, it is now 4 cents.
Hope this helps any of you guys who have struggled to get your head around this. I've just done some reading into different posts and I think that I understand it but please, please correct me or comment and tell me more if possible. It would be greatly appreciated!
GO ON! SHARE YOUR KNOWLEDGE! MAKE THE SHEEP HAPPY!
Thanks for reading!
Resteeming is not going to offer you a direct portion of the rewards for the post. Curation is when you upvote and resteeming is essentially sharing a post and allowing your followers to upvote that post as well. If you upvote a post earlier, you get a larger stake in the curation payouts, so you would upvote and then resteem and hope to get more upvotes after yours. 1 steem = 1 steem power. SBD does not always equal $1 USD as is the case for the last month or so. It's based on bitcoin and not USD so we have seen 1 SBD = 1.5-2 USD for the last month or so. Hopefully that helps.
Excellent, appreciate you explaining that.
So SBD is based on bitcoin and not USD! Riiigghtt! I'm with you!
As the famous philosopher Hannibal once said - 'I like it when a plan comes together'
Thanks again :D
It's kind of a self defeating philosophy to base a dollar on a currency you are intentionally trying to replace. In theory the SBD was created with the intention to parody the USD, but in reality it was never pegged to the USD because it is worth whatever amount of Bitcoin someone will pay for it. Increase the price of SBD lowers the production of steempower and in turns lowers inflation and increases the price of steem. It's really an elaborate system to ponder. :)
Yeah it's quite complex but I think the more that we can all talk about it, hopefully getting our heads around the whole concept of it then the easier it will be to try and explain to new users who may not understand one persons explanation but will understand another persons explanation.
I think being involved in cryptocurrencies makes you read up on trading, which in turn forces you to learn about how currency works and how it works, what affects the current price and why, and so on and so forth.
It's really quite the education system this crypto world :)
For a moment there i got confused with the SBD to USD thanks!
This came at the right time. Thanks for sharing
I'm new here so I would like to know the answer. I do know that I'm trying to build up on steem power.
Well hopefully all comments will help towards all of us understanding this more :)
resteeming does not increase curation points.
I've notes that dollars also go down why is that?
I'm not entirely sure what you mean, do you mean USD (US Dollars)?
sorry spelling mistake. I have NOTICED that dollars go down in the estimated value section of the wallet. why does that happen. and what does the estimated value section really mean
It is directly related to Steem value. Lets say Steem Price is $1 and someone who upvoted you had 5 000 Steem Power. At a price of $1 per Steem this power will generate $0.5 in potential payouts. Now, if steem will increase in price before your payouts occur (within 7 days of initial post) and rises up to 1.2, this means that your potential payouts will also increase and will therefore be 0.6 dollars. If it decreases, the potential payouts will also decrease accordingly. It is called potential, because you never know what will happen during this 7 day pending period.
Today SBD costs 6 times more than Steem. But as long as SBD is pegged to USD, you receive 6 times more dollar value per SBD per payout.
Hope this will help.
Being a fairly new member I can only assume this is based on your earnings through posting and commenting on comments as well as curation.
Unless anyone else knows more then please comment?
Possibly it goes down due to poor postings and being flagged or even because the value of Steem has fallen.
so helpful thank you!