1 STEEM = 1 SBD: And So It Begins!

If you looked up the price of both Steem and SBD, you'll have noticed they are virtually the same now... what does this mean?

I was minding my own business and checking my upcoming rewards in Steem Supply when I found this:

So... it happened!

Steem Backed Dollars finally stopped being worth more than STEEM. I was expecting this, powering up like crazy while a lot of people were holding on to their SBDs waiting for what technical analysts pointed as a correction for a HUGE SKYROCKETING of the price.

Well, I don't regret it one bit, the numbers are on my side and now Powering Up will be tougher.

Through this article I'm going to discuss the relation between Steem Backed Dollars and STEEM - the Blockchain's Flagship token.

I Was Warning Everyone to Take Advantage of Powering UP:

I know I'm only 1 month old, but as I am quite active I made a lot of friends here already. I was advising them to power up as much as they could, because you could buy more than 1 Steem per SBD and that was a ratio I didn't expect would stick.

Some considered my words, others shared the same view, but most people referred to technical analysis and claimed that SBD would skyrocket, hitting $30 soon.

Well, SBD has all the reasons in the world to go down, not up, and being a fundamental analysis fan myself, I kept powering up... I'm glad I did, and even if SBD would rise substantially as they say... I wouldn't regret it.

The trend is down for SBD, and let me tell you why.

SBD May Recover: But THIS is the Trend!

So, continuing with my line of thought, Steem Backed Dollars have all the reasons in the world to go down, not up.
These reasons are:

It was initially meant to be pegged to 1 USD;
SBD Quantities are Perpetually Rising at a Fast Rate;
SBD is a currency that gets sold more than bought - people use it to buy STEEM or Cash Out!
There's no reason to keep SBD other than to pay for Bots;
Hive account@grumpycat and some others are trying to decrease the price by printing more SBDs.

Among other things.

If you understand the market, you'll see that speculation is what keeps SBD up... that and the Fear of Missing Out.

If SBD increases in value and gets back up, it won't be because of a reason that is inherent to the market, but one emotional one inherent to humans instead.

There's no fundamental reason on why SBD shouldn't continue its decline.

STEEM is Now Capable of Constant Rising: Room for Growth

On the other hand, STEEM has all the reasons in the world to go up.
Some of those reasons are:

You are Incentivized Not to Sell it Through Steem Power;
You have liquidity restrictions such as savings and, again, Steem Power;
The platform is growing and developing;
The token is getting more attention lately;

Among others.

Now, with SBD not higher than STEEM, people will need more rewards in order to buy STEEM Power, and as such they will have to spend more and more to get it.

It becomes rarer, so supply and demand. It will grow. The harder it is to get Steem Power, the higher the price will go.

As such, this marks the beggining of the growth for STEEM, in my honest opinion, though I'm far from an expert.
Only time will tell.

Did You Stock Enough SP? I Sure Didn't!

If SBD keeps going down, it will be harder to get SP... so the question is, did you power up enough? Did you manage to get enough SP?
Well, I certainly wish I could have gotten more when I could buy 2 Steem per 1 SBD, that one is a sure thing.

I'll conclude the article by telling you that, if you're a newbie, you should still power up all you can, because the difference will only become larger with time, and there will be a time in which 1 SBD can only buy 0.01 Steem and so on... so grab it now while it is still a great bargain.

This is my advice, but I'm not responsible for your decisions, and it is only my opinion - again, I know nothing, if I did I would be rich, and I'm certainly not.

Just consider these words and think about them on your own.
Cheers!