Why SBD payouts are reduced and waiting for the markets to turn around.

in life •  7 years ago 

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You might have noticed that the amount of SBD you get for a post has reduced drastically.


I have.

I get about 2-3 SBD per post and a lot more liquid STEEM instead.

The reason for this is pretty simple and the system is working as intended.

All SBD's that are created need to me covered by $1 worth of STEEM.

In the good times (High STEEM price) a lot of SBD's were printed because the payouts were higher.

So, a $2000 post would create roughly around 750 SBD back then.

Easily covered by the high STEEM price. (at $5 dollar STEEM, 750SBD can be covered by 150 STEEM).

Now with the price of STEEM coming down the blockchain realises there is not enough STEEM to cover all the SBD's that were created in the past. (at $1,15 STEEM 750SBD needs to be covered by 652 STEEM).

So the blockchain creates more STEEM and less SBD's until balance is restored.

The mechanisms behind it are more complex but this is how it works in a nutshell.

It's not that it really matters for me.

I'm powering up everything I earn anyway and then some more that I buy with my own money.

STEEM price worries are probably on a lot of peoples minds.

I'm not immune to it.

I sure as hell feel it.

But you can't let it affect you.

This is the time to work extra hard and accumulate what you can.

The rule is pretty simple, accumulate in bad times and sell in good times.

Prices eventually will turn around and the more you have acquired now the better of you will be.

Just make sure you have enough time to sit it out.

Again it takes patience and believe that this blockchain will grow bigger in size than it is today.

I have been waiting for 2 years and a bit now.

I expect to wait some more.



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thanx

Very good information thanks

whats happening here lol 😂

Accumulate when things are low and sell when things are high...

It’s amazing that we all know that’s how to play the game but very few follow suit.

Sad because right now is the time to get as much STEEM as you can and power that stuff up!!! Good times ahead!!

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It’s amazing that we all know that’s how to play the game but very few follow suit.

100% truth

As my Granny always used to say..."Patience is a virtue." It's also a great time to buy a little steem along with working steemit to earn.

Where exactly does the Steem blockchain get the price from? I would be curious to know... Thanks!

  ·  7 years ago (edited)

from the witness price feeds, and they get them from a mix of differenct exchanges where steem is listed.

that is one of the reasons to vote for a witness like @blockbrothers (witness team with @exyle) or @swisswitness (where I am part of)

you are voting for @blockbrothers already (which is a good choice) but you are voting for quite a few dead witnesses as well

Screen Shot 2018-08-06 at 11.48.27.png

Thanks!

I really need to update my witness list one of the next days...

I didn't realize it worked that way! Thank you for explaining it in simple terms. I've been on here for so long, I find it funny that I still don't fully understand everything yet. I know the price will recover eventually so it's great to be patient.

Hi @exyle your words make me reflect. Every day I want to dedicate a bit of my time to steemit, I find it a bit difficult with the situation I live in Venezuela, but I'm still betting on steemit. I'm still waiting. I liked your post Thanks for the motivation.

Dear friend @exyle, I have been on this platform for almost 1 year, I think there is not a day that does not publish any story, food, contest and stop counting, I've been here stuck to my computer, as you do not have an idea, and I really do not know, if my posts are not of great value, but what I do know is that I have been here, faithfully publishing, I have come to the reputation I have, by God's mercy, but I have stayed, I see the publications of other people, who earn a lot and have been my guides, like you, who are an example, but also know that reaching the level that you have, you will have to spend many years.
I just think that with just a little help from insentient, one can run the best race, but being here every day and not being seen is hard, but this situation drives me not to faint and keep going, every day of my life, because I have a lot to thank this platform, just that it has not been easy, to get here.
If it is true what you say, that the prices have gone down and gone up, I do not know much about this, nor am I very knowledgeable about the subject, but I do see the changes.

You can not let this race go by, but if you continue, (you can not let it affect you). There is nothing that can be lost, just focus on the objective of the race, call the attention of someone of great importance and ask God to do a miracle, so that you can be seen, that you can get where you have not been and that It makes me very happy, for me you are someone important and very generous, I thank you every little contribution to a comment, I bless you my friend and I hope your success continues, thank you for your support and teachings, I want to follow your steps, although a thousand years later more, hahaha, Happy day dear friend.

Thanks for the info man. I totally agree with you. Steemit and all the decentralized applications based on it are the future.
So, for now- Buy... buy... buy!
Beleive in the blockchain
n just chill :)

I completely get the point you are making. The system is protecting SBD not to fall much below $1.00. However, if Steem goes much lower than $1.00, then I think it may take price of SBD down as well. Just the way it took price of SBD well above $1.00 In the past. That’s why I don’t believe Steem price goes much lower. I’m still waiting for Steem to get to $1.00 to pull the trigger. If we don’t get there, I’m fine with it.

Again it takes patience and believe that this blockchain will grow bigger in size than it is today.

You’ve been here longer than most of us. Does this crypto bear market feel the same as it did in past?

Good morning @exyle. I have my coffee as well. Woke up from a series of bad dreams so I just stayed up instead of laying back down.

I was just talking the other day about the SBD amounts being lower per post. Glad to gain a clear understanding of why it is happening. I am perfectly OK with getting more Steem instead of SBD.

Lately I’ve been using my SBD to buy Steem Monsters booster packs which has been fun. Enjoy the day buddy ☀️ Grateful to be a follower of yours.

-Ken (Cleveland, OH, USA)

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Yes it needs to be restored equal to steem value. I am also working on collecting a little bit os STEEM. Because i believe that it would go high in future and that would be the time to take benefit.
I also think this platoform will grow more bigger than it is today.
Thank you for sharing a little review over this.

Mark @exyle I Powered UP another 11 Steem earlier tonight and I intend to keep on working to produce more STEEM and keep powering UP. I don't worry about current price because I know that over Time this price on Steem now is a Gift..............

Do you think SBD will become worth much more than STEEM in the short term?

I don't know, man :) I therefor have both. I'm using the sad to buy steam though.

It feels so good to see the blockchain working, this feeling of great job... Incredible.

As you said on one of your last posts, and one of my favourite quotes: What matter is the amount of STEEM we got, not the price! (SBD or STEEM doesn't matter much too)

You might have noticed that the amount of SBD you get for a post has reduced drastically.

I did notice that @exyle. Thank you for the explanation. I actually like earning Steem directly because, for some reason, it feels like I'm earning more.

I've been powering up my SBD hoard a little every day for the last couple of months and am nearly at the end of it.

And I've bought some Steem the past couple of days. Having had that experience I am now seriously questioning the value of blogging for me. At least at the level I'm currently doing. It takes a massive amount of work, for very little return compared to buying some Steem.

I think it might be time to look at what other options are available rather than spending so much time blogging and commenting.

But I've said that before . . . 😁

One thing is for sure though . . . I'm hitting the beach today for a couple of hours . . . I can mull it over there.

Ah the BEACH! Excellent idea....... have an awesome day!

Thank you @stillwater. I spent a few hours there. It was glorious. Perfect temperature. And even te sea was lovely. 😊

Good day! I am curious about what process you use to buy STEEM? I bought it once and it seemed like the fees i paid along the way were high. Like, $20 CAD put about 8 Steem into my wallet. I think the steem price was around 1.5 when I did that so of the $20, $12 went to Steem and $8 went to fees. Is that about what you pay for fees when you buy steem with fiat?

Personally I bought a whole bunch of SBD that I now use daily to buy STEEM. When I change Fiat to Bitcoin in the Netherlands I pay a fee. Usually around 10 euro or so. From Bitcoin --> STEEM you I also pay a small fee.

Thank-you for your reply Mark!

Well the steemit team were very futuristic they covered all the aspects of what's gonna be possible and made the algorithm worked pretty well time for market to recover back its been a long time in this bearish trend

Of course. You have this kind of mind.

dh2o-wwucaaw2vx1-i6qcbg1.jpg

I'm here since December and I can't believe the ammount of dapps that are being created. This reminds me the cambrian explosion, when the animals emerged from the water. Imagine cryptos as animals. You can picture that lot of them are not going to survive, and from what is left, they will keep evolving.

Steem is the first of it kind. So it will trace the course of this new concept.

Good times ahead. Once you've seen it, you can't unsee it.

  ·  7 years ago (edited)

Great blog about Steem and SBD.
Yes, it's a long battle to make it back to Steem $5+.
I can imagine you feel stressed every now and then. Keep it up Exyle!

Pretty nice article. I had a problem understanding decreased SBD payouts and the reason behind. You have explained that all pretty well. Learnt alot from yoh @exyle. Thanks for the kind info.

Dat betekent dat er een neerwaardse druk is ontstaan op de prijs van steem.

Natuurlijk speelt de Beer markt een rol, maar door dit mechanisme zakken we nog verder en dieper in het moeras. En het is maar de vraag of steem er ooit weer bovenop kan komen, het kan ook naar 0.10 centjes zakken en daar blijven hangen... voor de komende jaren of zelfs nooit meer herstellen.

Enigste hoop is dat er met de HF20 partijen opstaan die met de SMT's iets gaan verzinnen waardoor steem gebruikt gaat worden. Dit heeft stinc dus bij de gebruikers belegt, net als de marketing...

Ik vraag me af of dit een reeel scenario is... ik ben bang van niet.

Zo erg is het ook weer niet, als het als een "failed experiment" door het leven zal gaan. Uiteindelijk kan steem net zo makkelijk naar 100 USD gaan als 0 USD...

Ik weet het niet, jij weet het niet en wij met zijn allen weten het niet.

Please @exyle help goodbloggers to survive
https://www.goodbloggers.com/blogger/exyle
I added you.

I've noticed the low SBD payout. I prefer steem payout to SBD. So, I've got no much worries about it.

It's really logical, I was really surprised at how miserly the SBD is coming per post and I only remembered it happened once when payout went incredibly low @exyle

All SBD's that are created need to me covered by $1 worth of STEEM.

I like your little typo there. 😀

Yes, I'm absolute agree with you👍 Have a nice day🤗

Excellent article. I learned a lot of interesting and cognitive. I'm screwed up with you, I'll be glad to reciprocal subscription

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Agree with you thanks for sharing

Do you have a link with the deeper explanation of this mechanism?

Have you read the whitepaper?

It is often said that a coin with an inflationary model is not sustainable, but we know from countless
real-world examples that the quantity of money does not have a direct and immediate impact on its value,
although it certainly plays a role.

From August 2008 through January 2009 the US money supply14 grew from $871B to $1,737B, a rate of over 100% per year, and then continued to grow at about 20% per year for the next six years. All told, the money supply in the US has grown by 4.59x over less than seven years. During that same time, the value of the dollar relative to goods and services has fallen less than 10%, according to the government’s price index.15 This real-world example demonstrates that supply is only one component of price.

For the first two years of Bitcoin’s life the network sustained an annual inflation rate16 of over 100%. For the first five years it was over 30%, and for the first eight years it was over 10%. All told, the total “spending” Steem requires to fund content, curation, and block production amounts to less than 10% inflation.

The price of a digital commodity like STEEM is driven by both supply and demand. When a long-term holder decides to exit, the supply of STEEM on the market will increase and push the price down. This downward pressure is countered when a new long-term holder decides to buy up the STEEM and convert it back into SP. Additional supply and demand may be added due to the purchases and sales of liquid STEEM by market speculators, based on their predictions of the future market price.

The whitepaper is a plain brilliant description about how Steem is trying to improve in lot of fields. Reddit is so 1.0 and Steem is so 3.0. I'm not trying to make spam here, but many of you might be lazy as me:

Contribution Rewards:
• Curation rewards: 1 STEEM per block or 3.875% per year, whichever is greater.
• Content Creation rewards: 1 STEEM per block or 3.875% per year, whichever is greater.
• Block production rewards: 1 STEEM per block or 0.750% per year, whichever is greater.
• POW inclusion rewards before block 864,000: 1 STEEM per block (awarded as 21 STEEM per round).
• POW inclusion rewards after block 864,000: 0.0476 STEEM per block (awarded as 1 STEEM per
round) or 0.750% per year, whichever is greater.
• Liquidity rewards: 1 STEEM per block (awarded as 1200 STEEM per hour) or 0.750% per year,
whichever is greater.

Power Rewards:
• Steem Power rewards: For each STEEM created by the above rewards, 9 STEEM are divided among all Steem Power holders.

I read the whitepaper but is hard to understand all the calculation involved in the demand and supply.

That's good my friend! You have anice day!

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But it's nice to get more STEEM :)

your patient enough has giving me that has been on this platform for 6 months hope to wait and blog more, there are so many things behind the blockchain....anyway we got keep hope alive and i am waiting for the day steem or sbd will hit 50$/1 its my believe i don't know about you

This too shall pass...

thanks

We are also waiting for that great moment ✌✌

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Yeah patience is the key...
Those who remain loyal to steemit will be rewarded eventually...

Thanks for telling the reasons about reduced SBD payouts. I was not aware of this fact and so i was pretty worried about the situation. Iam good now. Thanks to ypu @exyle.

Hi I like the idea of working and making things happen in preparation of better things to come. Liquid steem works too. I will just keep plugging away. Have a fabulous day

so cheers with tea cup till sbd gets back to the moon

Simply hodl! I can wait this out. It will be totally awesome when it finally does recover...

I agree

This is very encouraging especially for someone who is very new to steemit. I keep reading up on blockchains and trying to learn as much as I can. So now I understand the importance of powering up everything.

Great info! Thanks very much!

That make sense and makes it easy to understand what happens with the post payments! It's like you say we should stay right now that times are hard to be winners when everything gets better :D

I noticed this the other day too. I was curious why my rewards were showing up very different than I was used to and this explained it very well. Thank you for sharing! It is too bad that all cryptos have to be so closely tied together price wise. It would be nice to see some independence in Steem so it could grow even though BTC isn't.

Yes, you are right. It is all part of investing and dealing with cryptocurrencies. There are going to be ups and downs. Thank you for your continued help in this @exyle. Great to have you on board with us!