Hey everyone! I've gotten a lot of questions about SBD and STEEM and what I expect in 2018, here's a short post on my thoughts regarding the price of SBD and STEEM and what I'm doing with my payouts right now.
As you've noticed, the price of SBD is high and it's allowing every author on Steemit to earn massive rewards and either power up or diversify into other cryptos or fiat.
Do I think the price of SBD will go up?
If you look at the fundamentals of SBD and STEEM, it's clear that they are supposed to move inversely. As the price of STEEM goes up, the payouts on Steemit get larger and therefore, more SBD needs to be printed in order to pay authors.
As SBDs are printed, the number of SBDs in circulation increase and thus, should dilute the overall price of SBD. This is contrary to what we have seen over the past several weeks - the price of STEEM has risen and the price of SBDs somehow continues to stay high.
What this tells me is that there are a number of people who are continuing to buy/hodl SBDs in hopes that the price spikes back up to $18. Fundamentally, this would be a bad tactic, but you have to keep in mind that SBD is a cryptocurrency! Cryptocurrency price movements do not always reflect fundamentals (in fact, the majority of crypto price movements have nothing to do with fundamentals!!).
There's also been a lot of speculation that there are several large investors who are utilizing the low supply of SBDs in order to pump the price and make a profit by dumping massive amounts of money into SBDs. This is definitely in the realm of possibility, but I have no way of confirming it.
Do I think the price of STEEM will go up in 2018?
I think 2018 will be a huge year for STEEM. Here's a few quick reasons why:
- HF20 will be released
- SMTs will be released
- STEEM is fundamentally the best blockchain (in my, and many others' opinions)
- Steemit has seen explosive growth and it is continuing into 2018!
- The STEEM community has a vested interest in the growth of the platform and we are all working as hard as we can to make it better for everyone!
- The Snowball Effect - Steemians are obsessed with getting their friends on board (I know you've told at least 1 person about your excitement for this platform. I've told everyone I know and many have signed up as a direct result! Steemit is growing like wildfire and its mainly by word of mouth from fellow steemians!!! Keep up the good work!).
What am I doing with my SBDs?
Because I can't really make a concrete prediction about the price of SBD, I've been selling roughly half of my SBDs as I receive payouts. It's a kind of middle road that makes me the most comfortable during these volatile market movements.
I've been using the income from these SBDs to do 3 things:
- Buy Steem and Power Up
- Diversify into other cryptos
- Diversify into fiat investments
If you go to the internal STEEM market, then you can find the ratio of SBD/STEEM, I try to time my trading of SBD for STEEM when this ratio is peaking at its 7 day average.
I diversify into other cryptos if the ratio of SBD/STEEM is too low and I spot a good buying opportunity in a particular project that I research and like.
I also participate in real estate development and investing and I diversify a portion of my earnings from crypto by purchasing land and investing in several real estate projects. I've considered starting a vlog series about my real estate projects, would you be interested in getting an inside look as to how I make money in real estate? Let me know in the comments!
Disclaimer: this is not financial advice. This is just one man's opinion, do your own research and seek professional financial advice before making investment decisions.
QOTD: What are you doing with your SBDs? Are you hodling against the fundamentals, deploying a middle of the road strategy like me or selling them as fast as you get them?
P.S. In case you missed it, TKC has moved back to the comments and QOTD! For the past week, we tried featuring authors but it turned into a beast that we didn't really enjoy handling. I miss the old days when we would have our discussions in the comments rather than accross a multitude of posts. I hope you also enjoy the new changes! Thank you for reading and supporting!
Don't forget to leave your thoughts below and I look forward to seeing you in the comments!
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