See Saw, Up and Down: The Steem Economy!

Steem is down again and surprisingly, I am glad. I remember the last time Steem was down to $1.66 I did not have cash to invest and in the span of 28 days, the value rose by 267%.

I was happy and sad at the same time, happy because the price had risen but sad because I missed the opportunity to invest.

Over a couple of hours Steem has been on the green side trying to rise again but I am enjoying the down times because I do not have fiat to invest right now . Now am sure someone may be wondering how on earth I should be enjoying the downtime of Steem, well let me take a few minutes to tell you why.

If you do not have funds to invest in Steem, downtime should be the time to do more work because the Steem component of your post rewards will be increased and you have the chance to accumulate more SP than usual.

How is this possible?

When you earn on your post, the pending payout now referred to by some entities on this block chain as Steem Token Unit(STU) is divided 50% 50% after curation. 50% will be paid out to you in liquid SBD and 50% in SP this am sure you already know.

You have seen that the SBD and SP component always vary significantly even when the price of steem and SBD are very close in the external markets. The reason is that, SBD as an internal token on this platform is pegged against the US dollar at the rate of 1:1 hence it is more like the US Dollar Tether for the Steem blockchain.

This means that the system calculates your SP rewards against SBD at 1 dollar. What does this mean? It means that when you for example have a $30 payout after curation, you will earn 15 SBD but the other 15 will be converted to SP at its current price. So lets assume Steem is $5 at the time of your payout, your 15 SBD component will be converted into 3 SP hence you get 15 SBD and 3 SP.

However, if Steem price was to be $1 for our current scenario, you would be earning 15 SBD and 15 SP. Of course this will be less in USD but you get to keep it against a price rise in the future.

This means downtime is not exactly the time to cry as a minnow, it is the time to do more and earn more SP. If you didn't know, it is the best time the bid bots turn up profits. You can use the analysis above to see how this is true.

I wish you a happy STEEMy day, thanks for your attention and see you tomorrow. Bye!