I think that I have made an error by not powering up 100%. Sometimes, it is hard for me to get my head around things before I have had a chance to play with them and when it comes to the ins and outs of Steemit, I keep finding myself lacking.
Perhaps someone can see if have this right.
If a payout is $10 at 100% SP payout it is the price of Steem at the time (around the time a day or two before). So if Steem is at 1.00, the payout is 10 SP. If steam is at 2.00, it is 5 SP.
If I take a 50/50 payout instead. The SBD is set to 1 (or the currentish price?) so if Steem is at 1.00, It will be 5 SBD and 5 SP. If Steem is at 2.00, it will be 5 SBD and 2.5 SP.
Is this correct?
Okay, but if Steem is at 1.00 and I power up, I get 10 SP. But, where SBD is much more stable, Steem can hit the moon and go to 10.00. So 10 SP is potentially 100 USD. But 10 SBD is well, 10 US. (I know SBD went to about 2.00 a few months ago but if it gets pegged again it won't move much)
Now, If Steem was at 10 cents, a 10 dollar payout collects 100 Steem Power, which has the potential to be much much more.
Now, Steem Power is of course trapped (not liquid) and takes 13 weeks to Power down fully. But, if Steem is low and one expects it to go up, it would be better to take as much Steem as possible, and have a continual Power Down happening, right? That was every week, 1/13 can be withdrawn or powered back up but it is all in a currency that has the potential to go much higher than SBD. On top of that, it can add a little more through curation increases also.
Is this correctish?
So, by taking 50/50 all of this time, I have actually foregone a large amount of Steem. I think. But, if Steem is very high, it is better to get SBD as well as then it is liquid immediately and it will not drop very far. For example, if Steem is at 5, the $10 dollar payout gets 2 SP, the 50/50 gets 5 SBDish and 1 SP. But, at 5, Steem is likely to drop again significantly. If it drops to 2.50, the $10 payout is now worth only 5. But at 50/50, the 1 SP is worth 2.50, but the 5 SBD are still 5 and can buy 2 Steem. That would make the 50/50 worth 50% more than the 100 payout.
Now, this is not my strong suit obviously but I was thinking about this the other day. I notice that not many people power up at 100% Of course, having liquidity costs but if one is in it for the long term and thinks steem is going past the moon, Wouldn't it make sense to take as much Steem as payout as possible?
On top of this, if someone is not a big fish, the payouts are quite low so to maximise total gain, Steem is better than SBD plus, it adds voting power and curation return.
Is my thinking and numbers somewhat correct? Should everyone be taking 100% power up when Steem is low and setting a continual power down for liquidity? Would this be even more beneficial for the minnows to do rather than taking 50/50 to get small amounts out continually? Wouldn't this also hold more within the platform for longer?
At the moment, Steem is rising and is currently at 1.45 so I do not know where the cutoff point is where it is better to go 50/50.
What do you think or have I missed something fundamental? When it comes to this kind of thing, that is very, very likely.
But I think that over my time at Steemit, I should have continually taken full power up and reset the power down occasionally to factor in the higher base.
Taraz
[ a Steemit original ]
