Do the Math - If you're 100% powering up your posts, you're losing big time!

in steem •  7 years ago 

Let's work this rewards value out:


That number you see below your post is grossly incorrect, and could be costing you dearly if you are 100% powering up your posts. Your post is probably worth somewhere around 5 times that amount (just an estimate), or more with the SBD price being above 10 USD.

Your post reward $ value indicated right now on your posts is being calculated with the SBD being pegged at 1 SBD = 1USD. It does not take into account that SBD is through the roof at the moment. It only takes into account the STEEM price, which is currently $1.75 (ish).

Choose your rewards option wisely:


So when your "100% powered up" post pays out it's "estimated" value of say $80 (after curation split), you'll get $80 worth of STEEM, or 80/1.75 = 45.714 STEEM POWER.

Now if you use the 50/50 default it looks very different: Your $80 post payout will give you 40 SBD, and $40 worth of STEEM (40/1.75 = 22.857 STEEM). That 40SBD is worth $10.80 each on Bittrex at the time of writing this post = $432 (USD) = 246.857 STEEM. Now power it up!!

Or do it on the internal market:

Can you see the difference? That's around 270 STEEM POWER as opposed to 45 STEEM POWER!!

Let's take one of my lowly post rewards as an example:





This translated into a reward of 1.379 SBD and 0.812 STEEMP POWER.


I went to the market and bought STEEM with the SBD (I had a few extra cents, but you can work it out)


I bought 8.947 STEEM for 1.52 SBD!! That's 5.886 STEEM per SBD. So you can see that the reward indicated on the post is far less than the actual value if you use the 50/50 reward split..


When SBD is higher than 1 USD, you're probably better off using the 50/50 payout option, and then buying STEEM with your SBD on the markets.

Don't take my word for it, try it yourself on one of your own posts, and see what the difference is.

I'll say it again:

Choose your rewards option wisely!


Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Great work @bmj
Many people are unaware of how this reward system works and assume 100% is the best way to go. Make hay while the sun shines I say, who knows how long the SBD price will stay at these levels.

I suppose the difference wasn't all that noticeable until the price shot up to what it is now. I'm buying up STEEM with all my SBD right now.

A good move mate.

Excatly what I was thinking. Then use the STEEM and Power Up if you really need SP quickly.

Yep, exactly that :)

I think minnows should use that STEEM to lease delegated sp. That's what I've been doing and now my vote is much bigger. At least get yourself to 500 sp and then decide.

If you are under 100 sp you can lease enough steem to get over 500 for 8 weeks for like 12 steem or so. 12 steem added to a small amount of sp in your wallet does not really help right now. Bigger bang for the buck by leasing.

That is an option to get a big short term gain and give out bigger upvotes. The downside is you'll have to upvote yourself quite a bit to get that STEEM back, so you may as well just keep it and power up.

  ·  7 years ago (edited)

I don't think that is true at all. The difference between a 1 cent vote and 5 cent vote is life-changing in this place. Instant credibility for cheap. It took me 2 months to get 60 steem and I only earned 45 of that. Now in 4 months of leasing for about 20 steem cost a month, I have almost 300. There is no way I would be this far if I had been buying my steem. Leasing gives a huge advantage especially to get over 500.

You've done pretty well then, so it must be working for you. As long as you've got the cashflow to sustain a constant supply of leased SP then go for it. I wouldn't spend it all on a lease though. I would try to power up to the 500 SP mark with my own STEEM quicker. We're all in different places so would also have different priorities.

Having 500SP to give you the slider does have a big benefit. You can upvote a whole lot more which I suppose would attract more followers into your blog.

You will take forever to get powered up. I'm getting the leases to ladder - I have them for 6 weeks, 8 weeks, 10 weeks etc. All around 200-250 sp. It works out way cheap like this and you will most definitely be able to see the big difference. Especially if you self-vote and post a lot. Huge difference.

I get followers from commenting 30+ times a day. I have 2000 followers and maybe 30 views on an average post. Followers are not the key here at all. It's getting on people's bots so they never miss you.

Especially if you self-vote and post a lot. Huge difference.

That right there is what I said at the start. You need to upvote yourself to sustain the cost of leasing.

You don't get on autovoting lists by having money (although a lot of the "circle-jerks" do work like that). You get it by interacting and posting good posts.

HF20 is going to make self-voting a lot less lucrative too. When it's no longer as easy as it is now, those that have powered up their own STEEM will be the long-term winners.

I remember when I first noticed this in the market, I thought it was a glitch at first. Once I realized it was legit, I started selling. Nice Christmas gift from Steemit!

Well... I've been doing it wrong. Haha. It's okay though. It's a learning experience. I'm glad I read this.

We live and we learn. Hopefully SBD stays up and you can make some good SBD gains on future posts :)

Nicely said. But, in any market, there should be consequencies. Are the consequences of the scales being tipped to far? Is there a pressure release or a rocket launch?
🤔

Who knows? I believe STEEM is cheap right now (especially vs SBD) and SBD is severely overvalued, and will come down eventually. Hopefully STEEM will hold its value and increase in time.

Great thinking. This method should work ;)

It is working. You can get a lot of STEEM for your SBD, but you need the SBD first so 50/50 is the way to go.

Great advice and simple math really the choice is 100% power up or 500% power up in reality at the moment
We should all make the most of it while it lasts

Yes it is. Having SBD so high and STEEM relatively cheap is pretty sweet at the moment. Huge gains to be made by us minnows if we go 50/50.

absolutly, I jumped to quick I had about 90sbd and when it jumped to 2.3 I thought wow this wouldn’t last and converted the lost to Steem, but Ohh well its still up there so changing as it comes in

You never know which way it will go. If you wait you may lose out as well. I think it may stay up for a while still, so hopefully we can make some good gains while it lasts.

That’s true
Just making the most of it while it lasts

Qurator
Your Quality Content Curator
This post has been upvoted and given the stamp of authenticity by @qurator. To join the quality content creators and receive daily upvotes click here for more info.

Qurator's exclusive support bot is now live. For more info click HERE or send some SBD and your link to @qustodian to get even more support.

Congratulations! This post has been upvoted from the communal account, @minnowsupport, by bmj from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews/crimsonclad, and netuoso. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.

If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP. Be sure to leave at least 50SP undelegated on your account.

This post has received a 0.03 % upvote from @drotto thanks to: @banjo.