100% power up or 50-50 ???

in steemit •  6 years ago  (edited)

If you have asked this question thousand times and still don't know the answer exactly, let me explain it in the simplest way:

600px-Steem_logo.svg.png

let's do a math. imagine we have posted something and we have $100 payout pending. now, before you go out and get something nice for yourself with that money, let's see:

how much money is it really, if you have set your blog post rewards on:

  • power up 100%
  • 50% SBD / 50% SP

and if you have just wondered where you have answered such question, here is it:

Screenshot_20181115-000423_Firefox.jpg

all the way down to preferences:

Screenshot_20181115-000525_Firefox.jpg

here are the two pills! red or blue?

Screenshot_20181115-000555_Firefox.jpg

back to our math peoblem.

how much is 100$ pending payout, if we have asked for 100% power up?

75% × 100 = 75 STEEM as SP in your wallet
which will be 75 × 0.63 = $47.25
according to price of STEEM, right now.

how much is 100$ pending payout, if we have asked for 50% SBD / 50% SP?

75% × 100 ÷ 2 = 37.5 SBD & 37.5 SP
37.5 SBD = 0.93 × 37.5 = $34.875
37.5 SP = 0.63 × 37.5 = $23.625
total payout = 23.625 + 34.875 = $58.5

So, if you set on 100% SP, you will lose money!

but what if the price of STEEM and SBD changes?

Imagine the holy STEEM goes up to $2 level (sighhhhh and fingers crossed! wel it was 6 when I started blogging here!)

now let's do the math again:

how much is 100$ pending payout, if we have asked for 100% power up?

75% × 100 = 75 STEEM as SP
75 × 2 = $150

how much is 100$ pending payout, if we have asked for 50% SBD / 50% SP?

75% × 100 ÷ 2 = 37.5 SBD & 37.5 SP
37.5 SBD = 1 × 37.5 = $37.5
37.5 SP = 2 × 37.5 = $75
total payout = 37.5 + 75 = $112.5

so this time you will lose if you have set the preference on 50-50

STEEM or SBD

The qustion is which one is gretaer.
if STEEM > SBD then it will be better if you set your earnings on 100% power up

but if it's the other way, go for 50-50

now get back to work and earn some real money and become a dolphine before prices moon!

P.S. in both cases, there would be a curation reward if you have voted your own post, which I didn't calculate it.

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hi @honarparvar

Interesting choice of topic buddy.

Just like you pointed out: it's important to realize what is corelation between current price of STEEM or SBD.

There was a time when steem has been way more valuable than SBD and now it's opposite. In both scenarios result of payout will be different.

Cheers
Piotr

thanks for reading

I’m more of a 50/50 guy since I like to get SBD and then wait for prices to drop and convert into STEEM to get a larger stake

Posted using Partiko iOS

that works time to time 👍

Great advice, thanks.
I might be wrong but I think there's an error.
you said:

37.5 SBD = 0.93 × 37.5 = $34.875
37.5 SP = 0.63 × 37.5 = $23.625

What I think it's happening is that to receive the SP the steemit calculates how many SP could you buy with 37.5 SBD.

Which results:

The atual price is 0.63 SP gives you 1 SBD
37.5 SBD ÷ 0.63 SP = 59.524 SP

37.5 SBD you could get 59.524 SP

So, the payout will be 37.5 SBD and 59.524 SP

Because of that I think there's no difference in which payout you select. Just if you want to cash out it fast, or if you want to invest in your SP.

Please, correct me if I'm wrong.

hi
if you divide 34.875 by 0.63, it will result 57.2 which is roughly what you said in SP
did you get the point?

No :s sorry
But my doubt is that there's really a considerable difference in the price since the SP amount is higher.
The conversion maybe will result in the same amount as the post payout but in different currencies.

I read very contradictory posts here.

Posted using Partiko Android

Danke, für diesen Beitrag, sehr hilfreich und wirklich leicht erklärt

thank you for reading 🙇‍♂️

good time to remind !!

i hope next time we are talking about the other way! 😏🤞

I personally prefer 50/50, as SBD is bound to US$
so no matter, what Steem-shares are worth - I got my Dollars 😁😎

exactly 👍

50/50 all the way! Good tip 😋

for instance 😏

This post has receive a 25.00% upvote.

The calculations you did, I don't agree with that.
Your post-payout is almost 100$ so see your rewards first.

They are not like 50% SBD = 50%SP. 50% SP is greater than 50% SBD.

So if a post-payout is 100$
25% goes to curation.
75/2 = 37.5$
now for SBD assume SBD = 1$ then you will receive 37.5 SBD.
for Steem assume price is 1steem = 0.7$
then the SP you get is 37.5/0.7 = 53.57 SP.

Results. 100$ post-payout at SBD = 1 $ , and 1steem = 0.7 is 37.5 SBD and 53.57 SP.

Regards,
Dayyan Khan

You got a 32.94% upvote from @upmewhale courtesy of @honarparvar!

Earn 100% earning payout by delegating SP to @upmewhale. Visit http://www.upmewhale.com for details!

I am sorry but your calculations are all wrong. The $ value you see on a post is the USD equivalent of the reward. They display the post value in US$ equivalent of the number of vests and then distribute it in steem based on the internal steem price .

So a $100 payout value minus 25% curation is $75. At 100% steem power if Steem is $2 you get paid 37.5 steem. If the internal price of steem is $0.5 you get paid 150 steem. This is why you see the $ post values change over the 7 days it takes for them to vest if the market moves a lot (as the payout is fixed in the number of vests not the $ shown )

If you choose 50/50 then you get 50% paid out in steem price and 50% in SBD. So 100$ post ($75 after curation) with 50c steem price would get paid in 37.5 SBD and then 75 steem).

The only way the post value differs from the USD value is if the SBD value is not 1 (as it assumes it is 1USD per SBD). So if the peg is broken to the upside and SBD is worth $2 , then it still pays you out the same number of SBD but they are worth twice as much. So it is best to choose 50/50 if SBD is trading above $1 otherwise it makes no difference to the payout.

You can check your payouts here https://steemworld.org/@honarparvar and also the internal steem price which is a weighted average so it takes a while to catch up to a fast moving market.

🤔 same thing I read... STU is equivalent of USD, right.
if STEEM is above 1 USD, 100% powerup is better.

No the steem price is irrelevant. As it issues you steem based on the USD equivalent. (Ie 5 STU is 5 steem if steem is $1 and 10 steem if steem is $0.50, and 2.5 steem if steem is $2).

The only market variable that matters with respect to payout is SBD as it assumes it is worth 1$ and issues them accordingly when in reality is it is not a perfect peg an frequently breaks to the upside.

and when SBD is below 1 dollar...?

Well SBD below one dollar in theory is better 100% power up. But SBD normally stays at close to one dollar as you can redeem it for 1$ worth of steem via a blockchain conversion so it keeps a floor. It takes seven days to redeem however to at times like the moment when the markets are moving fast it can fall below a $ .

thanks, i have to correct this post 🙇‍♂️