Should I use POWER UP 100% for post reward?!

TL;DR: No!

You get more with Default (50% / 50%) reward ratio. Read to find out why.

source - steemit shop

Lately i see some accounts that are picking Power up for post reward, and i wanted to explain to them, why they are loosing money by doing so.

Steemit rewards are calculated a bit different than most of us would imagine at first. And 50% STEEM POWER / 50% SBD actually is not 50% / 50% when you convert that in US Dollars.

For an example we'll take a post that rewarded the Author with 100$ (Steem token units or STU - thanks Hive account@fbslo for correction) (curators rewards are already taken out of this).

Current Steem price in US Dollars = 4.25
Current SBD price in US Dollars = 3.78

So let's assume Steemian A took 100% POWER UP and Steemian B took 50/50 reward distribution.

Steemian A's formula is simple. You take 100$ and divide it with current Steem price in US Dollars. So the STEEM POWER he received would be approx: 23.53 STEEM POWER. That is equal to 100 US Dollars.

But let's look at the Steemian B, who chooses 50/50.
His formula is a bit tricky. 50% is converted to STEEM POWER. This one is easy and the same formula as 100%, just for 50 dollars instead of 100. So his first 50% reward is approx: 11.76 STEEM POWER. The second part of reward is converted to SBD. But here is the most important difference. It does not calculate with actual SBD price! You get 50 SBD! And 50 SBD can be converted to 189 US Dollars. You can add 11.76 STEEM POWER to this calculation and you actually get a 238 US Dollars post reward. And that is more than twice of 100% reward!

Here is a quick table representing the above results

What should happen to be better with 100% POWER UP ?

The only time when you get more is if SBD is worth LESS than 1 USD. STEEM price is actually quite irrelevant for the calculation, the only difference is if SBD is less than 1 dollar. In that case you should use 100% POWER UP. But since I strongly believe that won't happen again ... :) You can just forget about it and convert your SBD to STEEM after you get reward payed out.

Or you just want to have a little steem icon next to your post to show how cool you are for losing money? =)

So my suggestion is, use 50/50 always if SBD > 1 USD. And use blocktrades (by Hive account@blocktrades) or Steemit internal market to convert that SBD -> STEEM -> STEEM POWER!

You have any thoughts or questions? Upvote and leave them in the comments bellow.

I'll upvote back every meaningful comment with few cents