The attention from the future

With price spiking, it is going to be interesting to see if there will be an increase in the powerdowns as over the last month or two, the staked Steem has remained relatively stable after climbing 5% since the EIP was introduced. 50/50 curation made a difference in this regard I believe as it not only encouraged staking, it also gets paid in stake on the 7-day window.

Currently the staked Steem sits at:

But, as price of Steem rises another factor comes quickly into play, and that is the STEEM debt ratio. he blockchain has not been printing SBD for quite a while now as Steem has been well below the value required. The blockchain has been pricing Steem above market value at 20c for a long time, rather than using the market price to value it. This is the "haircut", and I am comfortable to say, I do not understand it well enough to go into detail. I am sure someone can in comments or there are posts that cover it somewhere.

This was taken from http://steemreports.com/steem-sbd-info/ a few minutes ago and show that the ratio is dropping. For it to start printing SBD again the price still has a bit of a climb ahead of it, but not that far. Having SBD print again creates a more complex and dynamic environment in many ways, but it would be nice if SBD held its peg. I do not think that with the current mechanics it ever will though. Wouldn't it be great to have a native stable coin?

There are currently 7.3 million SBDs out there and I wonder if the holders are expecting a pump like it did at the end of 2017 which saw the price of SBD hit 20+ dollars on some exchanges. Steem was sitting under 2 at the time and the conversion ratios were up to 1:11, with the best I was able to acquire being 1:7ish. Good times for growth, but also ridiculous times in many respects.

Speaking of good times for growth, I noticed a post from @aggroed suggesting people should get back to writing and many who fell dormant over the bear market have missed out. I agree and have been agreeing for a very long time on that - if you haven't noticed :)

As I said, it is going to be interesting to see if some powerdown to catch the markets, but if it keeps climbing, what we are going to see are the return of the fairweather Steemers, the ones who are active when times are good. I am sure that many of these people will still have autovoters set on them also, so not only will competition go up from newbies discovering Steem for the first time, oldies will also lock up a percentage of the stake.

A lot of people still don't know what this means for their payout in Steem, they just like the big numbers.

The blockchain feed price is currently 20 cents. A post that earns 10 dollars total will attract 50 Steem to it, and this will be split between poster and curators. 25 STEEM each. The market price for STEEM right now is about that 20 cents, so that means 5 dollars each side of the 50/50.

The blockchain feed price was 2 dollars. A post that earns 10 dollars total will attract 5 Steem to it, and this will be split between poster and curators. 2.5 STEEM each. The market price for STEEM at 2 dollars will mean 5 dollars each side of the 50/50.

Same, same--- but very different.

The reason is that when price is well up, people tend to spread their votes out more as they start to evaluate whether something is worth 10, 20 or 100 dollars... or much more. With so many new people with significantly more stake than before, rather than giving out larger percentage votes, they will look at the dollars they give. Right now getting a 100% vote from me at full power is around 60 cents worth, but at 2 dollar steem like the case above, that would be a 6 dollar vote, but will deliver an identical amount of STEEM as it isn't the price that dictates that, it is the vests.

A 50,000 SP (assume 100k vests) account voting at 100% is identical to a 500,000 SP account voting at 10%. Vests are important to consider here and while everyone spends their time worrying about the fiat value of their posts, the ones who are looking long are more concerned with the STEEM earned on a post. the higher the price climbs, the less STEEM one is likely to earn, and this is a good thing.

We want attention on Steem and while price is down it is hard to boost any post to any kind of value that a news outlet will say -what happened there? But once prices are up, that same sized Steem inflation pool is able to be spread wide to reward many and a few very highly in fiat values, while still distributing the same amount of Steem.

How much did you earn in the last 7 days?

If you were able to attract 50 STEEM on your posts in total, that is worth currently about 10 dollars. Great.

But in a scenario of 5 dollar Steem, you earned 250 dollars. This is significant for almost anyone in the world and at 5 dollar Steem, thousands of people will be getting that weekly, with many getting much less, some getting much more. While you might be jealous of those some, they are the ones who are going to attract attention locally in where they live and perhaps nationally and internationally. That kind of publicity is very expensive.

Imagine if over the next week there were hundreds of news stories distributed across the world telling of people who have been earning significantly from blogging on the Steem blockchain, do you think it would attract attention?

Yes.

Are you going to be part of this - or are you still on hiatus and waiting to see what happens?

Taraz [ a Steem original ]