Steem Dollars touched $0.73ea on Polo

timcliff (73) · 7 years ago (edited)

Hi @ausbitbank - thanks for bringing more attention to this issue.

Currently the price is $0.9567 on Bittrex. This is not great (we want it to be within $.01 of $1 if possible) but $0.95 to $1.05 is generally considered an acceptable range. It is fairly normal for it to drop below $0.95 or above $1.05 temporary, usually due to large buy or sell orders, or dramatic shifts in the market. As long as it comes back 'into range' within a short amount of time, it is not a huge concern.

The whitepaper has this to say:
Changes to the interest rate policy and/or any premiums/discounts on the STEEM/SBD conversion rate should be a slow and measured response to long-term average deviations rather than attempting to respond to short-term market conditions.

A lot of us have been watching the medium/long terms very closely, and trying to calculate / decide what the right move is. It was actually very recently that we were in a situation where we were charging a premium on SBD conversions and talking about ways to push the price down. We are trying to avoid a "knee-jerk" reaction, and look more at what the medium/long-term trends are.

Another factor (unfortunately) is the lack of stability of the main exchanges. It is a separate issue, and one that needs to be dealt with, but it cannot be ignored that a large factor in the price of SBD is likely related to the fact that users are unable to reliably use the exchanges. It is questionable/debatable as to whether or not the witnesses want to adjust their APR policy based on the external factor of unstable exchanges. I don't know if there is a right/wrong answer here, but it is part of the debate.

I recently adjusted my interest to 0.5%, because I had started to notice a medium term trend of SBD frequently being at $0.95, with occasional dips below. I largely blame the exchanges, but my view is that if this is going to be the new 'norm', then we should probably factor this in to the price until they are stable again. I'm hoping the performance improvements the Steemit dev team blogged about will help with this. I have starting to feel that some interest is warranted, which is why I increased my APR to 0.5%. I know it is not much, and maybe it is not enough. It was mainly a signal to start having others look into possibly increasing theirs.

If we do see a prolonged/continued SBD price staying at an equilibrium closer to $0.95, where it rarely/infrequently is making it back to / above $1.00 USD, then I think we should definitely move back to having a small amount of APR interest again. I don't think 5% is necessary, even though SBD is 5% below $1. It doesn't always work out as a one-to-one effect. I would probably aim to start at 1-2% interest and see how it goes. If users are able to get a small amount of interest for buying/holding SBD again, it may be enough to supply the slight increase in demand that is needed to bring the peg back to $1 USD.

One last thing, just so folks have the info - the way SBD APR works is it pays in monthly intervals. If all of the witnesses increased their APR to 1% today, it would not pay out for another 30 days. At that point, users who had held SBD for 30 days would get their monthly portion of the 1% yearly interest. If witnesses don't keep the interest in place for at least a month, then no interest is paid. (This is another reason why it is important to use it as a reaction to longer term trends, rather than short-term market fluctuations.)

Thanks again for writing this post.

$30.78

drakos (70) · 7 years ago

This comment should be in a post of its own 🙇

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6 votes

tommyg (30) · 7 years ago

Where can I learn what this all is? I've been posting and using site for 3 days and have no idea how to really get involved.

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timcliff (73) · 7 years ago

The FAQ and Welcome page are good places to start.

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sdd (10) · 7 years ago

@timcliff
i support with your comment 👌
Upvoted
@ausbitbank
Wonderful article 😍
Continue 👈

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dez1337 (63) · 7 years ago

Great - The SBD is < 1$ for several weeks now. I think this is the right decision, thank you for that @ausbitbank :) +1

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4 votes

crypto-investor (61) · 7 years ago

Half the problem is Poloniex anyway, ausbitbank. Even on Bittrex today, SBD is still 90 cents, which is cheap. I like to buy SBD below $1 for a trade, but part of the issue why I wont switch today is I wont get the ultra cheap rate on poloniex which I do not trust, since I may never be able to withdraw the funds. And 10% trade on Bittrex would be okay if the market were tanking, but it's rallying nicely so I'd rather just own the stuff going higher. Nice thing you're taking steps to try and keep the value in line with $1 USD. SBD would just do a lot better of poloniex closed shop or got its act together.

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6 votes

luisneira (53) · 7 years ago

Just found you @ausbitbank, and your concern about raisind the APR value deserves my 100% upvote, my vote for you and repost ... that is all I can do right now... And keep up the good fight!!!

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djunmul (48) · 7 years ago

Hi @ausbitbank, I have voted for you as my witness.

Thanks

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teemnomad (41) · 7 years ago

I am new to Steemit but posts like this are very helpful, keep up the great work @ausbitbank. I must confess this is way over my head but great to see people taking such an interest in ensuring Steemit is a success.

100% Upvote, Resteem and Follow from #teemnomad!

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11 votes

dwhntx (52) · 7 years ago

Going over to vote for you now.

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2 votes

spaingaroo (53) · 7 years ago

you continue to reward my confidence in you.
You were one of the first witnesses I voted, long before I had any inkling of what a witness even does or anything.

I think maybe aggroed and then you, although those heady days, nearly a month ago were so confusing, that I can't be at all sure.

but well done and I am glad to support you with my vote

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underground (67) · 7 years ago

Sounds like a good plan, 2% is higher than most U$D accounts offer, (3% would generate more activity, IMO) but we don't want to get too "generous" and fall into the same trap as generated by the F'ed Reserve" system. I've been using my SBD as gifts and for vote-bots, but the savings option would be much more attractive if it actually gave a return! :D

F.U.R.R. For OZ-Bit!

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5 votes

fitinfun (71) · 7 years ago

Voted for you based on your position about apr. Thank you from a minnow who does not quite understand what is going on now :)

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5 votes

cryptocoinptrs (43) · 7 years ago

We're with her @fitinfun on steemit ♨

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sammosk (71) · 7 years ago

Awesome, good to see someone has an eye on things!

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4 votes

richq11 (72) · 7 years ago

I still don't understand this, but when I was selling off some SBD to put on my card, there was someone (s) on there selling blocks of 2500 SBD... there were 3 in the time it took me to sell 100.

ausbitbank (73) · 7 years ago

Which exchange was this ?

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richq11 (72) · 7 years ago

Bittrex

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hanshotfirst (76) · 7 years ago

Thank you for looking out for the community. I know you are working incredibly hard to protect our investment.

arckrai (62) · 7 years ago

Poloniex and Bittrex had their wallet in maintenance for a while and it seems like with the increased selling pressure it has kept going down. I can't believe its got to $0.73
I thought most witnesses had a higher interest rate but I guess not. Thank you for your work @ausbitbank to restore the SBD peg

jamjamfood (58) · 7 years ago (edited)

Makes totally sense with the price evolution right now. I wondered when you (witnesses) will handling this topic. I researched some weeks ago on this topic of interest rates, which were active in the past.
The bottom of the price fall is not reached yet, so definitely a topic for the next months.
You had already my vote as witness. :-)

lyndsaybowes (71) · 7 years ago

Thank you for always looking out for everyone's best interests. You're one hell of a Witness. I had cast my vote for you a while back. Resteeming this.

2 votes

inber (75) · 7 years ago

Just voted for you witness:) I understand really a few in cryptocuency, but hope SBD will be back on it's positions:)

msg768 (65) · 7 years ago (edited)

0 missed blocks since my last update (38 ever) .

Thanks @ausbitbank. This is very important. Steemians should pay attention to this when they vote for witnesses. Please reconsider your vote, if the witness you've voted for is missing a lot of blocks! You can check this data at steemd.com :]

ilyastarar (64) · 7 years ago (edited)

This post is for witnesses. I know that but would like to agree with @timcliff on most matters. 5 % APR does not seem unfair in the current market scenario which is prevailing since June this year.

You yourself said that if you move up, you'll lower your APR. I think that's ok. I don't know the technicalities if all the witnesses raise it to 5 % but Tim has made good deliberations on the topic.

I have voted @ausbitbank for witness and I request everyone to do the same.

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2 votes

orionschariot (57) · 7 years ago

Thank you for bringing attention to this very important issue. I had not checked the SBD price in a few days and was shocked to see it had fallen so low. This is yet another reason you already have my witness vote. Keep up the great work!

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msp-shanehug (47) · 7 years ago

This post has been resteemed by @msp-shanehug courtesy of @sammosk from the Minnow Support Project ( @minnowsupport ). Join us in Discord.

Upvoting this comment will help support @minnowsupport.

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cryptocoinptrs (43) · 7 years ago

TY @ausbitbank changes to witnesses made!

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ahsansaeed (52) · 7 years ago

Amazing Post! Upvoted and Resteemed Followed you!

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cloudspyder (59) · 7 years ago

Wow, sir thank you so much. I also want to setup witness for steem network. But the problem is how to do that and what are the requirments.

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ausbitbank (73) · 7 years ago

Running witness and seed nodes can be quite complicated technically and will not be profitable unless you can raise quite a lot of support. I was a user and developer on the network for almost a year before beginning my campaign..

If you're unable to google the first steps it doesn't bode well for your ability to maintain a reliable service or your commitment to this idea..

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meatspoon (40) · 7 years ago

Yeah dude being a witness isn't something you just ask for people to tell you how to do smh

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nikunjo (30) · 7 years ago

wow !! Thank you @ausbitbank
The SBD is < 1$ for several weeks now.
I think this is the right decision...

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rooneey (60) · 7 years ago

Oh my god

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dompetsteem (49) · 7 years ago

nice

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andr1an0 (6) · 7 years ago

The value of the SBD keeps shrinking and by reading to your article it seems that only the witness are able to increase the interest to get the SBD back on track.

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muhammadsharukh (29) · 7 years ago

thanks for sharing this information with us
great post keep it up..!!

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blazing (70) · 7 years ago

Finally good to see someone stood up for it i hope Sbd price gets close to 1$

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cryptousage (39) · 7 years ago

Great information. Thank you.

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millionairemark (49) · 7 years ago

Only a witness can raise his interest?

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sc-steemit (64) · 7 years ago

The top 20 witnesses sets the overall network interest. It has nothing to do with their own interest.
If one witness sets it to 20% it doesn't make any change, but if all 20 top witnesses sets it to 5% it will make the network use 5% as the new standard.

You can see the current consensus variables on https://www.steemdb.com on the right side.

tzap90 (56) · 7 years ago (edited)

I thought that with new version interest is only on steem- my fault.
Do we need to hold SBD just in our accounts or shift them to savings to get any interest?
is the current rate 6.8% for steem and SBD? if yes why does it always show collecting 0% APR

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sc-steemit (64) · 7 years ago (edited)

At the moment the interest is 0%
When there is interest, it will say so in the wallet on your account, and there is no difference if they are in your savings account or your direct access account. The interest set by the witnesses is only for SBD.

Interest for STEEM is set in another way.

SBD Interest values can be found in the table labeled `Consensus State`.

Here you have
Account Creation Fee, Maximum Block Size and SBD Interest Rate

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bardamazon (40) · 7 years ago

What does one need to do to get to witness status?

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neowne (48) · 7 years ago

Great report that you made!

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epico (50) · 7 years ago

Voting for Witness!!

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sultan-aceh (79) · 7 years ago

Nice @ausbitbank...
Regards you @ausbitbank..
i will Vote, follow and resteem u post @ausbitbank
thank @sultan-aceh

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lcerm (48) · 7 years ago

Thank you for all the hard work that you are doing!

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hossainsohag (51) · 7 years ago

FOLOW ME AND GET UPVOTE EVERYDAY WITH GOOD COMPANY.EARN TOGETHER

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agro189 (39) · 7 years ago

That's sick. I can't believe I'm earning dollars posting shit online!

STEEM ME!!!

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prakashghai (63) · 7 years ago

Yes please

We need a fix.

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funnystuff (61) · 7 years ago

This is going too bad news.Good work on keeping eye on that things save life for many keep upto date..followed you for more good contents like this wish you the same 😊 @funnystuff🌹

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reddragonfly (64) · 7 years ago

Thank you for taking action @ausbitbank. Although there seem to be a few occasions where it goes lower, SBD on Bittrex has mostly been in the $0.94 to $1.01 range for a few weeks now... but there seems to be a lot of downward pressure.

The thing that concerns me a bit is the frequency with which Steem/SBD wallets go "offline" at both Poloniex (especially) and Bittrex... have to wonder what lies below that? Thinking about patterns on other (past) content sites, I am suspecting that any of our recent arrivals are "cashing out" every time they have 25 or 50 cents... and it's effectively like pouring a bunch of "dust" into the machinery... just wondering if that might be related to the sluggish (both price and volume wise) action on both Steem and SBD?

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quantumpoker (48) · 7 years ago

perhaps the devs should introduce a minimum cash out of 20 sbd/steem to reduce the potential dust spamming of the chain...

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progressivechef (76) · 7 years ago

Hello @ausbitbank, is this the only reason for the drop in value for SBD? Are there any other factors that is affecting it! I would like to understand a little more as I am really very new here!
Thank you!

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skabbas147 (29) · 7 years ago

nice information dear :)

i upvoted and following :)
you do same as i done :)

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dreder (39) · 7 years ago

Do you mean like when you're loaning your SBD on poloniex?

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alanmirza (63) · 7 years ago (edited)

Nice bro, good post

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journeyoflife (67) · 7 years ago

Kinda sad to see it fall I thought there was hope left to see a rise . Maybe Steem will do that job

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lovejuice (61) · 7 years ago

This post has been resteemed by @lovejuice courtesy of @sammosk from the Minnow Support Project ( @minnowsupport ). Join us in Discord.

Upvoting this comment will help support @minnowsupport.

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fitinfun (71) · 7 years ago

Why do you think this value is falling now? Is it because too much money is leaving the system or another reason?

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kkro (40) · 7 years ago

I think most of alt coins are falling because of bitcoin going up, many are selling their coins to get some bitcoin

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fitinfun (71) · 7 years ago

I hope you are right. I get the idea people are dropping off the plan here but I am new so it is hard to tell.

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pandorasbox (59) · 7 years ago (edited)

Do not worry too much. The normal way things go are that all altcoins go down when Bitcoin goes up because people are selling altcoins for Bitcoin. Then when Bitcoin tops out and starts going down a bit.. this is because people are selling their Bitcoins at highest price and taking profits. Usually what happens next is that when Bitcoin goes down, altcoins go up again, because these profits from Bitcoin will be reinvested in the altcoins. If Bitcoin goes up 10%, I expect altcoins to go up 20% in the days coming after (assuming you have good altcoins).
Don't go switching altcoins for Bitcoin now... If you wanted to do this you should have done so yesterday or the day before. Right now it's better to stick with your altcoin such as STEEM and wait for the profits to flow from BTC into alts, and enjoy the ride.

TBH I don't know if Steem will benefit as much as other altcoins. I feel like the STEEM price has not been benefitting all that much lately from price increases. I suspect this has to do with an increasing number of people who are losing faith, because Steemit has big problems with bot-voting and financial-voting (as opposed to qualitycontent-voting).

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fitinfun (71) · 7 years ago (edited)

Well, I do not really get this since I am new to crypto, but it seems like all the currencies should rise with bitcoin. I'm concerned why steem is bucking the trend.

And this:

"increasing number of people who are losing faith, because Steemit has big problems with bot-voting and financial-voting (as opposed to qualitycontent-voting)."

I totally agree with you. btw - finally went into steemchat to promote my posts in there for the first time and now have 2 guys begging for upvotes!

Just a little frustrated - I should go to sleep now :) I have no money to invest or sell - I am here to promote my content.

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pandorasbox (59) · 7 years ago

It's easy.. When you are on an exchange and have money in STEEM and it is currently not going up, but Bitcoin IS, then what do you do perhaps? Well, sell some STEEM and get some Bitcoin, make 5% profit and then buy back into STEEM and have 5% more STEEM than what you begin with.

This process takes a little while and is currently ongoing. Pretty much all crypto's are declining at this moment because of it. Once Bitcoin starts to dip bigly, I feel like this could happen any moment now, you will see altcoins rising a day after or so (give people a while for them to figure out where to best invest their newly earned profits).

In any case, if you sell STEEM now to buy into Bitcoin I think you will end up a loser. For the moment, I'd suggest to just HODL! Or switch to another altcoin if you believe that has a better chance of gaining than STEEM.

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fitinfun (71) · 7 years ago

Well, I have nothing to sell or buy lol. But if all the "little" currencies are acting the same like steem - then I feel better. If steem is going down and the others go up - then I worry.

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pandorasbox (59) · 7 years ago

You can track the current price swings of the top 100 currencies on this site: https://coinmarketcap.com/

As you can see most crypto's are currently reporting negative percentages except a handful of them.

Though, admittedly, the whole market has been on the upswing lately - except for a few former superstars, amongst which Steem is one. I think it's going to require some significant news, or perhaps Steemit coming out of Beta, in order for the price to significantly rise. Excitement seems to have moved on to other projects, there needs to be a reason for it to move back to Steem.

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Show 1 more reply

lig007 (51) · 7 years ago

Would love to get interest on sbd

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saidulakbar (55) · 7 years ago

I like your posts

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remarxtin (45) · 7 years ago

I read it twice, and it is still not really crystal clear to me...

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devrajlove (8) · 7 years ago

good to see someone has an eye on things . . . . thanks for share

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minnowsupport (70) · 7 years ago

This post has been resteemed by @minnowsupport courtesy of @sammosk from the Minnow Support Project ( @minnowsupport ). Join us in Discord.

Upvoting this comment will help support @minnowsupport.

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lig007 (51) · 7 years ago

I have voted for you as witness. Thanks for watching the interest rate.

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msp-lovebot (48) · 7 years ago

This post has been resteemed by @msp-lovebot courtesy of @sammosk from the Minnow Support Project ( @minnowsupport ). Join us in Discord.

Upvoting this comment will help support @minnowsupport.

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quantumpoker (48) · 7 years ago

hmmm... thanks for that.... interesting... just picked up a few sbd on polo in the hopes it'll bounce up again if you witnesses get it sorted...

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yash0108 (56) · 7 years ago

Hi,
i resteemed ur post sir

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themarkymark (78) · 7 years ago

What are you using to broadcast your price feed? Steemfeed-JS?

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ausbitbank (73) · 7 years ago (edited)

@furion's conductor toolkit
https://github.com/Netherdrake/conductor/blob/master/README.rst

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themarkymark (78) · 7 years ago

This looks great, thanks!

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bladz0543 (26) · 7 years ago

hello.. nice to know you.. i will follow your account.

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rbbeachdesigns (43) · 7 years ago

Wish I understood how this work better. I continue to read and learn though.

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bitrebels (34) · 7 years ago

Thank you for putting this into the spotlight. A lot of new information for me and I think it's definitely time to take a closer look at this.

Great read! Thanks, @ausbitbank!

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cardboard (61) · 7 years ago

Thank you for keeping an eye on this issue. tip! 0.3

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@tipU - send tips by writing tip! in the comment and get share in service profit :)
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tipu (67) · 7 years ago

Hi @ausbitbank! You have just received a 0.3 SBD tip from @cardboard!

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scooter77 (67) · 7 years ago

It seems that the price of SBD is fluctuating a lot but has been under the USD$1 mark for a little bit now. An increase in the interest rate would certainly have people keeping their SBD rather than selling them off. Great post.

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stonesteem (47) · 7 years ago

You're always on point! There is no way your value will go unnoticed.You'll only go higher and higher. I'm interested now on how this will play out.

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leongkhan (64) · 7 years ago

@ausbitbank,

I would also suggest reducing supply by changing payouts to STEEM instead of SBD for a couple weeks. There is still no significant demand signal for SBD therefore we have built up an oversupply.

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timcliff (73) · 7 years ago

This could not be done without changing the way the blockchain works via a hardfork.

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tstyle (29) · 7 years ago

So if my Steem Dollars are on poloniex, and they don't allow withdraw, does that mean they get all the interest?

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daydreams4rock (63) · 7 years ago

hello ABB, thanks for dropping in and upvoting on my recent kanazawa Japan blog , it really means a lot to me. Let me know if you have any projects that you would like supported, i have already voted for you as a witness.

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dethie (43) · 7 years ago

Great work @ausbitbank I hope everyone will see this.

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cloh76 (66) · 7 years ago (edited)

I changed my preference to 5%. I figure it will help to average out the whole overall

@cloh76.witness

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uangdatang (40) · 7 years ago

😵😵😵

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negojobs (31) · 7 years ago

Buen post amgio.
Te sigo

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duytruongnguyen (43) · 7 years ago

A good post. I upvoted for you.
I leave my post , I hope you like to drink lemon juice: https://steemit.com/health/@duytruongnguyen/eight-great-benefits-when-drinking-lemon-juice-regularly-every-morning-for-2-weeks

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steemian69 (52) · 7 years ago (edited)

Steem Dollars Will Definetly Go Back Up To $1 Good Move @ausbitbank Also I Like Your Content And I'm Voting For Your Witness :)

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brad-saunders (49) · 7 years ago

I am getting addicted to steemit.com very fast and if i was able to purchase more steem power I would...I wish I knew about this back when I actually had a bitcoin and it was worth less than $500 CAD, although I don't think we had steem quite yet, I want to buy as much as possible before the spike. (Medical issues persist I stay a slave, ha not even a slave) I feel this is the calm before the steem storm .....FULL STEEM AHEAD.....to the moon! cheers,

I need to read your post again there is some deep math there and I am trying to figure out what is best for me and the community as a whole to set my votes too. currently I think they are set to around 72 % on esteem. up-voted and re-blogging

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bien (70) · 7 years ago (edited)

Great works and update about the issue sir @ausitbank i did not mistaken of choosing you as one of my intire witnesses...

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acab1312news (58) · 7 years ago

Oh I love the sound of cryptocurrency notifications

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arcange (73) · 7 years ago

Congratulations @ausbitbank!
Your post was mentioned in the hit parade in the following categories:

Comments - Ranked 6 with 101 comments
Pending payout - Ranked 8 with $ 287,92

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samuelsunday (34) · 7 years ago

Good work please..

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tszunami (59) · 7 years ago

Obviously someone is doing something wrong...

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themarkymark (78) · 7 years ago

I'm new so it won't likely matter any, but I changed mine to 5% as well.

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rtdcs (63) · 7 years ago

Great analysis @ausbitbank. In my opinion it's time to buy more :D

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