Don't power up 100% !!

saywha (63) in steemit • 7 years ago (edited)

At least not yet!

keep choosing 50/50 payout

I have gotten the question in chat a few times lately, and seen it numerous other times

"Since SBD is getting lower than steem, is it better to power up?"

The short answer is absolutely not

Why? cuz math, thats why!!

I am going to show you an example. In the example STEEM is worth $5 and SBD worth $4.
(These numbers are strictly for ease of use)

So you have a $40 payout, assuming exactly 25% goes to curators, you should expect $30 dollars in normal circumstances. If you choose 100% power up, that is exactly what you should receive in SP. So $30 would equal 6 STEEM POWER if STEEM is $5. (see chart to the right below)

BUT

If you choose 50/50 when SBD is worth MORE THAN 1 DOLLAR... your returns will be MUCH GREATER. Since it is hard to explain in text format see the chart to the left below which will show you the result of your payout even if SBD is lower than STEEM ($4 SBD in this scenario)

As you can see. Even though SBD is lower than STEEM. You still make 2.5 times more by going 50/50 over 100% power up. If you want STEEM and not SBD you can always exchange in the internal market for the best rate. ~~Seriously don't use blocktrades for SBD to STEEM~~

AS LONG AS SBD IS MORE THAN $1 USD CHOOSE 50/50

please share so people don't miss out on free money

steemit steem sbd crypto cryptocurrency

7 years ago by saywha (63)

$40.62

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:

Trending

[-]

cabernet (53) · 7 years ago

Ugh this is why you watch the market often, @cabernet. Haha, that's me shaking my head at myself 😧 Thanks for the short, simple explanation!

$2.30

1 vote

[-]

mohammedfelahi (57) · 7 years ago (edited)

very smart . proved mathematically.

$0.16

2 votes

[-]

kodaxx (56) · 7 years ago

This makes a ton of sense, and I had never thought of it this way. Resteem'd

$0.11

3 votes

[-]

austinhopper (53) · 7 years ago

Yeah I wish the Steemit wallet showed you the current market value for SBD instead of just assuming it's $1. It's pretty misleading. I had to figure this out the hard way when I started and I've had to explain this to all my friends and family whom I've gotten into Steemit.

$0.10

2 votes

[-]

brianturner (67) · 7 years ago

Good post for sure, some newer users are losing out when they choose that! Instead sell the SBD for steem in the internal market, then use that to power up so you get more steem power in your account overall!

$0.10

1 vote

[-]

saywha (63) · 7 years ago

boom. exactly ;)

$0.00

[-]

carolyn.eichler (30) · 7 years ago

Cheers, nice explanation.

$0.00

[-]

combofrenzy (54) · 7 years ago (edited)

Thx for the info. Loved the chart :p

$0.09

1 vote

[-]

infinitum (34) · 7 years ago

Thank you for this post. It explains well that 50/50 is the right choice at this point. I had always wondered.

$0.07

1 vote

[-]

khufu (55) · 7 years ago

I'm a noob here & I'm wondering why I haven't seen that option to select how the rewards are allocated.

Do I have to get to some threshold of steem power before I see what's in the graphic at the top of this post or is there an option somewhere I've missed or unchecked or something ?

$0.04

1 vote

[-]

hennessy (57) · 7 years ago

good info. thanks

$0.04

3 votes

[-]

samuel-swinton (61) · 7 years ago

And that math is why the system is so brilliant. Over $1, SBD is chosen to be generated so that it can be sold. This increases the supply of SBD and puts downward pressure on the price. When SBD is below $1 people either power up directly if they want SP or they choose to hold the SBD for the interest. Both of these keep the supply of SBD in the markets low. The economics of SBD make the price trend toward $1.

$0.03

1 vote

[-]

mikquote (43) · 7 years ago

Is there a chance where you can make the numbers change in which have a metric scale, where the curators have a different percentile?

80/20 or 20/80????

       MikQuote™

$0.00

1 vote

[-]

saywha (63) · 7 years ago

not right now, no

$0.00

1 vote

[-]

mikquote (43) · 7 years ago

Stick with 50/50!

$0.00

[-]

adamo26 (38) · 7 years ago

Awesome, I honestly never really paid attention to this! Very well explained, really Thanks for sharing!

$0.00

1 vote

[-]

cryptojamesyou (45) · 7 years ago

Great insite, I'll keep this in mind

$0.00

[-]

escapist (60) · 7 years ago

It’s always nice know how ”save” $$$. Even if this is also fun without, is payout always nice!

$0.00

[-]

preparedwombat (70) · 7 years ago (edited)

AS LONG AS SBD IS MORE THAN $1 USD CHOOSE 50/50

Words to live by. Back when it fluctuated in a narrow range like $0.97-$1.03, it was always tough to decide which option might be better because you had to guess what the price might be seven days out. But with things this out of whack, 50/50 is so clearly the way to go.

$0.00

[-]

tezmel (66) · 7 years ago

Always chose 50/50 because I assumed 50 is my rewards and 50 powers the account but never really knew it was the better option! Thank you for sharing this... :)

$0.00

[-]

samexycool (53) · 7 years ago

Wow-very detail and clear. Thank you

$0.00

[-]

christinb (46) · 7 years ago

Nice article

$0.00

[-]

phaheez (34) · 7 years ago

Fantastic. Wish to power-up to 100% but now understood the mathematical calculation of it. Thanks buddy for nice post.

$0.00

[-]

hungrybanana (59) · 7 years ago

@saywha I think math doesn't work here much, because paying system is so different which we can't explain by math. And I got confused because of your calculations. You said 40 dollars payment but is it SBD or USD?
They're showing SBD on our posts. For example I got $10.09 from a post and $7.80 came to my account and $2.29 went to curators.
From $7.80, I got almost 3.9 SBD and 0.673 Steem Power. Steem was about 5.5 USD in that moment while SBD was about 6.2 USD. I don't know how they calculate Steem Power that they will give from articles, but only thing I understand from this is: Until Steem is 5.8x of SBD, don't choose 100% Power Up. Wish we had 100% payment by SBD option. And why 5.8x? It's because 3.9/0.673 is almost equal to 5.8.

In your calculations there is something that I don't understand. If you got $40 from a post. $10 will go to curators and $30 will come to you.
If you divide 30 by 2, you will get 15 SBD from that post. If you divide 15 by 5.8, you will get 2.586 Steem Power. My math calculation is like that (I didn't add calculations for currency value, because it's not necessary in this platform until you want to get your money back).

But I agree with you if we take it simple. Because nobody should use 100% power up option. 50/50 is so much better.

$0.00

[-]

saywha (63) · 7 years ago

Wow. Your explanation here is waaaayyy off. You apparently didnt read the whole thing. I gave example steem/sbd prices.
Your logic if 5.8 x also doesnt make sense. Your payout is strictly in USD. You get less steem if the price of steem is higher.

$0.00

1 vote

[-]

hungrybanana (59) · 7 years ago (edited)

Edited: I read this post second time and I read your comments and now I understood what you meant. I was wrong about calculations.

So, they calculate price of Steem by USD in payments. Now I understood better, thank you for information. I'm enlightened. I understood:

Author payment/2 = SBD reward
Author payment/(2xSteem price) = Steem Power reward

I knew SBD reward calculation, but I had no idea about Steem Power reward calculation. I'm so thankful for this information, I still learn every day lol

I'm sorry for confusing people.

$0.00

[-]

saywha (63) · 7 years ago

I really hope this doesnt confuse people because everything you posted is completely wrong lol

$0.00

1 vote

[-]

dee-y (59) · 7 years ago

Awesome post @saywha, didn't realize this but after reading your post to the end, I see a truth in what you are saying... It's a bit tricky I must say and I hope most people realize this quickly. Thank you for the wisdom

$0.00

[-]

juned (43) · 7 years ago

Penjelasan yang sangat bagus untuk pemula steemian, postingan yang sangat bagus terimakasih semoga harimu menyenangkan.

$0.00

[-]

deliberator (63) · 7 years ago

I had seen people saying leave it at 50-50 at least I know why now, cheers.

$0.00

[-]

ordosjc (66) · 7 years ago (edited)

Excellent publication, @saywha I will execute it. that's why I follow you, since you provide valuable information in each of your publications. Regards,

$0.00

[-]

scuzzy (60) · 7 years ago

This is absolutely vital information for the new kids joining Steemit. I appreciate you dropping the knowledge and building the community!

$0.00

[-]

halcyondaze (61) · 7 years ago

Math: Not even once.

All jokes aside, this is the best explanation of it yet.

~ Kevin

$0.00

[-]

deadspace (69) · 7 years ago

So, what you're saying is cash out and put all of my Steem and SBD into Dogecoin? Sounds kinda strange, but I'll give it a shot if you say so.

$0.00

[-]

saywha (63) · 7 years ago

misread my own instructions... dick caught in toaster oven

$0.00

[-]

deadspace (69) · 7 years ago

Oh, I know how to get that out of there! You just turn on the blender and stick your hand inside of it, then shout racist language at the police when they show up! Works like a charm 60 percent of the time.