This is a simple explanation on why the SBD rewards are so low.
SBD is debt. Think of Steemit as a country with its own economy and people. Many countries have a system of selling debt in which the country is obligated to pay as long as the country is still in existence. It is a great source of revenue for the country. In the case of Steemit, the users are the primary benefactors of this system instead of a government.
In our case with STEEM/SBD, it functions in a similar way. Instead of paying users in a normal currency (STEEM), the Steemit system pays in partial with debt called SBD as long as there is enough STEEM available to cover that debt. If you are familiar with a savings bond, you can think of SBD as a savings bond for STEEM.
Excess value of STEEM covers the SBD debt. Right now, STEEM value is very low and an automatic system kicked in to reduce the amount of new debt created. The system pays out in STEEM/SP instead of SBD.
Oh nice i like it. You choice topic to write post amazing. Thanks for share.
Wah! Very good article! Thank you.
You are welcome
:) :) :)
Okay.... =/ "Where Did The SBD Payouts Go?"
These kind of titles worry me a bit...
Your topic is so interesting. Nice
So beautiful dollar
Thanks
Finally someone explained this...
Thank you so much :)
Glad you liked it
well, if that be the case then im perfectly fine with it. I only intend to turn my SBD to fiat money once it reaches 100SBD. Given my current earning rate, that would be a very long time from now. and im not willing to convert my steem into SBD any time soon either.
Haha, a very long time. If it is SBD that you want to turn into fiat, then it may never get there as SBD is a pegged currency. It could be a safe place to store value if the market continues to drop.
if im righy, SBD is dependent on the value of steem. well, my rewards are distributed equally between SBD/SP/STEEM, so all are accumulating simultaneously. I believe I will grow with time
SBD is influenced by the cryptocurrency market and particularly Bitcoin. There is no upper limit on price, but there is a lower limit on price. The value can go up, but not down below $1.00 unless something catastrophic happens. There are mechanisms that drive the price down to $1.00, but market influence overwhelms those mechanisms. When Steemit gets large enough, market influence on SBD price will be less.
I always try to tell people SBD is a good place to store value but my friends give me crazy looks. SBD is more likely to triple compared to a lot of other coins in the market
that's interesting. thanks for the insight.
Sbd is suppose to be pegged at $1 usd. If u are waiting for it to get to $100 usd u will literally wait forever.. steem will be at $100 usd infinitely sooner than sbd so u should exchange all of ur sbd to steem right now while it is so close to a 1 to 1 trade.. steem is the future, sbd is nothing.. read the white paper, it will shed light on this for u.. it explajns everything..
Holding SBD can be dangerous. It can also be smart if you know what you are doing. There are some whales and orcas that are holding large amounts of SBD. They are doing that for a reason. Presumably using SBD as a hedge.
actually what I meant was that i am waiting for my rewards to accurate up to 100SBD before I convert it fiat money because I want to use it to get a phone, and not for the value of SBD to reach $100
NIce line under ''SBD as long as there is enough STEEM available to cover that debt''.
I like how you broke this down so simply. Many people were very confused (and quite frankly, concerned) by this, especially those who joined in the last 6 months to a year. A lot of those people are no longer even here due to the decrease in payout because the payout mechanism weren't really setup to calculate the conversion using Steem. At least that's how I understand it.
But at the end of the day, they should've just stayed because either way you're earning crypto through content and curation, and Steem will go back up in value sooner or later. This is a long-term game and some players just aren't cut out for it :)
Eventually it should go back. Until then the rate of returns are still pretty good. It is also easy to float to the top when everyone so many are taking a break.
That was a good education! Perfectly explains it!
Sbd is pointless.
Thanks for your post...Learning great stuff from posts like this. Keep up the good work.
Will do.
You mean, when the steem blockchain pays out in SBD, that means, issued SBDs don't count to the token inflation (at the time of issuance)? If this would be the case i might let myself be convinced this has some meaning, otherwise i find this split into SBD and STEEM, and the constent neet to shift back and forth between it just so endlessly tyring and annoying....
i wondered same. thanks for clarifying this. what goes down must come up
@socky
my dear and good man (or woman) @socky ... concise and to the point, referred by @brandonfrye btw, and just what the doctor prescribed as i was starting to see whalestreet wars and currency vs inflation manipulation by the pantheon on mount steempus but i has another question ...
and maybe you're the one to ask (if you're still reading that is)
in the current system , do i LOSE reward if i set it to 50/50 ? is it better to put it on 100%steem instead for the duration of the grand crash of 2018?
any ideas or suggestions ?
thanks in advance
me
do not downvote, do not flag, do NOT feed the trolls
and in this situation turn your SBD to Steem will be a wise and right choice? because the price of steem is cheaper from SBD and its mean we can grow our SP too.
what do you think @socky? if I power up in this time, is it going be a little help for Steemit or Steem too?