Why SBD Is Moving Away From Steem And Why It Will Get Worse (Minus A Pump)

in steem •  7 years ago 

Thanks to somone's comment I realized that SBD is rewarded based on the value of steem. When you get a payout it is half sp and half sbd. Now if the value of steem is 5 dollars and you get one steem for a post then you will also get 5 SBD for that post. If steem is worth 10 dollars than you will get 10 SBD and one SP. So as we see an increase steem so do we see an increase in the amount of SBD given out and thus a decrease in its value.

Now you might be thinking steem has been at a higher value than this and SBD still went up. Yes but that we over a short time. What we are seeing now is steem holding at 2-3 dollars for an extended period of time. This is good but this also means we are going weeks and weeks with SBD being produced at 2-3x faster than steem.

This does not mean there still will not be a pump is SBD, it is still a much smaller marketcap than steem. And I am waiting to see what happens on the next bull run in the market before I sell mine. But if steem stays high then over time SBD will continue to drop and maybe even reach the one dollar mark.

At least that is how I see it.

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Yes this is true, I however am holding some sbd in case we see another pump like last time. The demad for sbd is also being held higher than it should because of paid for vote bots, this function has given sbd a use case that it never had before.

I tell you, I keep my SBD so long as the SP-SBD approximation is most favorable. I am sure the Universe will conjure up something wonderful for those who show patience, letting us end up in the right place just in the nick of time.

very good information for steemit users what else like me is always looking to find out about steemit. we all hope to keep SBD steady as usual in the past year.
thank you for posting this very useful friend that I will uvote and rebuy @whatageek

So what i am getting from this is that sbd is probably going to stay behind.

and that it would be more useful to hold STEEM instead of SBD

Yes but there can still be a pump where SBD surpasses steem price when bitcoin and market go bullish. But that will probably be temporary.

ok

It's really something most people on the platform does not really hope for, the last two days has been pretty awful

That was the initial plan for SBD to be $1 but that scare the shit out of me. The following week will tell if SBD will move up with steem or fall back

Damn! should have converted it earlier. Should I wait and see for a few more weeks or go ahead and buy steem to convert to SP?

Personally I'm waiting but I can sell it for another coin if I can't buy steem.

i m just prayin sbd will get a major turn-over, the market value is just too unstable.

  ·  7 years ago (edited)

If you pay attention to SBD's history, you will see that it has always been around the 1$ price but it still made some "violent" pumps up to 22$ once and up to 13,80$ in last December or January. Before these pumps it was lower than the 2,30$ that it is now.

In my non-expert opinion, whatever "rises" falls and whatever falls rises again. Also, it has done it before, why not now again? Plus, if the market goes in a wild bull run that all the experts suggest (but I haven't seen yet and this worries me way more than SBD's price) then I would bet that SBD's price will rise too.

PS. I witnessed live the most recent modest pump we had. SBD was "jumping" wayyyyyy faster than Steem's price. SBD was 2,80 and 20 minutes later had reached 4 something. From what I saw with MY OWN eyes, when SBD pumps, it LITERALLY pumps (can't say the same about Steem which always pumps slower and in a more balanced way).

I keep my SBD and waiting. Whatever falls, eventually rises (again). Keep the faith bruh!!!!!

Best comment :)

I would add one more thing:

Abnormal Demand on SBD is created by speculators. By its structure and characteristics it should never be more expensive than Steem.

If anyone believes that speculators will seize speculative actions, OK then :) But it is practically not possible.

If sbd does go to $1 i shall miss those days oh well sbd was always meant=$1

SBD has never had a use case up until around 1 year ago. PAID vote Bots. This is the reason sbd is a demand now. Take the randowhales n minnowboosters away and you will see sbd at 1$ again :)

SBD was ~$1 even after the introduction of bots, Upbit was the only reason SBD ever got pump and dumped.

Nope, people buy it for vote bot's FACT.

Price action and volume was led by Upbit yet there are net outflows to Upbit FACT. If that price action had anything to do with actual use on steemit vs pure speculation on that exchange the story would be different.

Nope

so what the strategy? Hoard Steem and sell them to convert to SBD?

Well put article, I agree, been waiting for SBD to hit .7 STEEM per on blocktrades since yesterday.
Got it for .707 STEEM per SBD, not too bad. Turned 160 SBD into 112.977 STEEM.

I might regret it later, but who cares, I regret most crypto transfers I do anyway and with the mission statement for SBD being to tie the value to the US dollar now seemed like an OK time for me to revitalize my STEEM.

The way I see it, as long as we are using applications on the STEEM blockchain, we are winning anyway.
This place is abundant with potential and opportunity.

But if my past trends hold true, SBD is about to go way up XDXD

Who made the comment for you to realize that?

That guy might know a thing or two