What happens to Steem tokens in our savings account? How quickly does Steem depreciate?

in steemit •  8 years ago 

I couldn't seem to find a clear answer - and not sure if I'm understanding...but once we put steem in our savings account, does it turn into steem dollars?

And how long can one hold onto steem tokens before they lose value?

Noob questions :-) So many of them. Trying to read up - I just want everyone to know that Steem & ADHD Do NOT MIX lol - I came on here to read one thing, and have been on for about 6 hours now !

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  ·  8 years ago (edited)

Some info for you
This is quite an old post and there have been some changes. However, the main gist is still correct. If you want to get more technical there is the steem white paper. There is also this post which covers the savings account.

To answer your questions directly though:

once we put steem in our savings account, does it turn into steem dollars?
No
And how long can one hold onto steem tokens before they lose value?
This is a trickier question than it would appear to be. It has to take into consideration the supply (token generation) as well as the market demand and the SBD to steem ratio as the SBD is a dollar peg and backed by steem. (A kind of debt mechanism).

For a simpler answer. If you don't use your account for posting/curating than the value of your STEEM/STEEM POWER may decline due to inflation (more tokens available over time). However if demand outpaces the amount of tokens in existence/being generated - the value goes up.
SBD however is supposed to remain close to US$1.

At the moment the demand is high and people are willing to pay more for steem. So you're account value is also going up. In fact it's so high that the SBD price which is supposed to be pegged at US$1 is currently US$2+.

If you want to transfer STEEM into SBD you can do so by clicking on the drop-down in your wallet and selecting "Market"
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You can then sell your Steem For SBD.
Good luck!

EDIT I'm not an expert. Just sharing what i understand of it.

Should have looked at your wallet history. It seems you figured this out already.
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But hope the other info is useful.

Wow ! Thanks so much. I only figured out how to convert STEEM to SBD. Like many, I initially purchased steem because I saw it in the top 10 or 15 cryptos. It's kind of funny now - all the people who are investors only - with no knowledge about how steem works are going to be in for a big surprise when they put a few $1000 into Steem and check in a year to find that their tokens have depreciated.

Really love this platform and thanks again for taking the time to give such a detailed response!

Can you take out of savings and turn it back into steem? I made some noobish mistakes. LOL