When we choose the 50/50 payout option on our Steemit posts, we earn 37% more than with the 100% Steem Power payout because Steem Dollars or SBD are actually worth today $1.69 on the market! Would you continue reading to see why and how to quickly change SBD into Steem and/or any other cryptocurrency?
Here is the data from a recent post where we were kind enough to upvote it for these rewards.
That is what payouts look like on the default 50%/50% setting.
If I had chosen to power up at 100%, I would have simply received no SBD and instead double the Steem Power. I made a quick Microsoft Excel spreadsheet to show the differences.
With choosing the 50/50 option and using https://blocktrades.us/ to change Steem Dollars to Steem Power, I get 181.365 Steem Power out of my 227.888 SBD! The reason for this is that exchanges like Bittrex have Steem Dollars available to be traded which allows anyone to just buy Steem Dollars on the open market. Meanwhile, there are a very limited numbers of Steem Dollars available because they are only printed from rewards on posts as far as I know. This has caused the rate of exchange to Bitcoin and the USD to be as seen below today.
This means that while Steem pegs a SBD at 1 USD worth of Steem, trading it on the open market yields a value of $1.69 per SBD meaning that SBD today are worth 69% more than what they are intended to be. When exchanging for Steem, this consistently comes out to getting a lot more Steem with SBD versus just taking the full payout from Steem.
If when you see this SBD are worth less than $1 at https://coinmarketcap.com/currencies/steem-dollars/ then you might still want to get SBD anyway because you can use the wallet to make an exchange at the $1 value. Given that the Steem wallet will provide a guaranteed 1 SBD to $1 worth of Steem conversion, it is unlikely the price will ever go much below $1 for a SBD making the perfect scenario for SBD consistently be worth more than 1 USD. See inside the wallet for the options.
While I stated that I use blocktrades to change to Steem Power usually, Steemit has a market at https://steemit.com/market which lately has been much worse of an exchange rate than Blocktrades or Bittrex as seen below.
Changing my SBD to Steem on the market would have got me a much smaller gain than using Blocktrades or Bittrex to make the exchange.
In summary, it seems logical to consistently choose the Default (50% / 50%) option and to convert the Steem Dollars. I personally am using https://blocktrades.us/ to convert my SBD either to Steem to power up or to USD via Litecoin sent to Coinbase and then sold to my USD wallet. In the last month, I have powered up 3676.264 Steem using SBD and sold $3081.92 to USD for paying taxes and contractors like @aarellanes and @gmichelbkk to help me with my posts!
Thank you to @aarellanes for inspiring me to write this because yesterday ...
I saw the Steem symbol next to Albert's post which means he powered it up 100%. I am not the first nor will be the last to post about this and I hope I have helped provide a quick tip today that helps you make a lot more off of your posts you were considering on powering up!
Shout out to these authors that already posted about this subject and helped me to learn this in order to share it with you!
PSA: Don't Select 100% SP Rewards by @bacchist at https://steemit.com/steem/@bacchist/psa-don-t-select-100-sp-rewards
Why I Do Not Choose the 100% SP Option for Payouts, But Power Up all Rewards Anyway by @norbu https://steemit.com/steemit/@norbu/why-i-do-not-choose-the-100-sp-option-for-payouts-but-power-up-all-rewards-anyway
Answering Common Questions: Should I use 100% Steem Power or 50%/50% Payouts for my Post by @sykochica https://steemit.com/steem-help/@sykochica/answering-common-questions-should-i-use-100-steem-power-or-50-50-payouts-for-my-post
Maximize Your Author Rewards - Use 50/50 Split When Blogging by @wakeupsheeps https://steemit.com/chainbb-general/@wakeupsheeps/maximize-your-author-rewards-use-50-50-split-when-blogging
Thank you for reading this! If you found it helpful, would you please upvote this 100% because I am hoping to pay down all my student loan debt?
Love,
Jerry Banfield
wow very nice important information
we all appreciate this post, we get to learn to earn more!
Not just that but the knowledge is priceless!
The priceless is just one thing here :)
amazing post love it.
Upvoted and appreciated. Thank you so much Jerry, bringing value as always!
Let's help pay off my student loan with an upvote how many can I get ?! @jerrybanfield
Following you. Please follow / upvote if you like my articles :)
Followed and will do 👍
Thanks ;)
I am going follow you,, please follow me back
I hope u like it
Steemit MONEY making strategy and TRICK.......it's kind of HACK steemit
https://steemit.com/security/@kaiju/steemit-money-making-strategy-and-trick-it-s-kind-of-hack-steemit
Yes, this is important information, especially for newcomers like me!
Excellent! Still wrapping my head around all this. Wish I had more time. Please follow, I have some AMAZZZZZZING posts coming up.
THANKS Y'ALL!!!
: )
#payitforward
Hello, i follow you, can you please follow me, and if you like my latest article today about Windows 10 7' laptop could you please guys upvote? Thanks https://steemit.com/steemit/@cryptomonitor/ready-for-7-inch-windows-laptop Thanks for support :)
Dont stress yourself :)
Thank you for another great post. I will use the 50/50 option for now on.
Commenting before reading.. Based on other comments I should look into the post.
Found Steemit only few days ago, you have been excellent resource for learning about it. Thank you!
Kaarel
Ha the title answered the question I was wondering! Still read the article just to be sure.
were all in the same boat on this andrew 😄
Welcome Kaarel, hope you will have good time here. Can you please follow / upvote? :) Thanks
Sure thing man!
I'm glad I never considered to switch my 50/50 default option...
Upvoted and resteemed
Thanks, didn't realize this. I converted my steem dollars in steem.
You continue to teach all of us.
Thanks
Domi
woha! This is nuts !! Although I felt that i've been earning a lot more lately
I am feeling awesome because I stsrted 2 dsys back and just loving it
But how about 0% SP and 100% SBD? Is this setting possible? This would be best for the payout. An when many Steemians sell the SBD on Poloniex or Bitrex, the price of SBD will be falling to 1 USD, which is where it's intended to be.
100% SBD payout is not an option.
Thanks for sharing. Great information as always!
Wow I didnt know, thank you for sharing this with us Jerry! Cheers 🍻
Great article, helped me understand much better. As always with awesome content, upvoted & resteemed! Thanks Jerry!
Thank you Jerry, i will switch back to 50/50 now
50/50 it is then. Boom. Done!
Thank you, good to know!
awesome!!!!
Hey Jerry, you brought me to steemit.com; maybe when the market is right I will dump some money in; for now I am very new at this and have no followers can you guys follow me by the way? I'll appreciate it a bunch
You have to pay attention to all three options. There is Internal Market, Blocktrades and external market! They move around a lot!
Thanks Jerry, another great tip. I used 50/50 option because it was the default. But now I understand how it works. So this means that we have to keep on the price of SBD. When its value drops below $1 than it will be better to go for the 100% steem power. Is that correct?
Thanks for summarizing this, I did stick with the 50/50 rule. Did not realize that SBD was already higher than one dollar!
Thats correct, but take into consideration that there are benefits out of steempower. Better voting power, therefore better attraction to followers , which should gain your posting rewards.
Wow! Very interesting statistics! Thanks for sharing!
Thanks @jerrybanfield you really share something matter to the community, I like to read your articles. I used 50/50 payout for a while for that reason. But I am not sure the amount of difference. Good job.
Thank you for this Jerry!
Whoops! I've been using the 100% option. Thanks!
I set it to 50/50 and I am happy to see Jerry confirming its worth.
Great trip Jerry!!
Awesome Jerry!
I was keepin my eye out for this post! glad I could inspire you!
From now on ill be posting with 50/50 rewards.
I appreciate your involvement in answering a legit question!
I also knwo youre doing your upvotes tomorrow morning, Id like to recomend a post by someone else for your full 100% nomination!
Its a guy whos willing to give his car away if the post gets 1K
https://steemit.com/steem/@yummymummy/so-i-have-decided-to-sell-my-beloved-mini-for-steem
Thanks bud!
-Dest
Thank you for this amazing info Jerry, glad you were the major reason I got into the Steem community. I did own a small stash of Steem ( just a couple of bucks actually ) because I was trading it on an exchange and never knew its great potential until I saw your post and seeing how passionate you were about Steem. Now I have half of what I own in Steem. Thanks for Introducing me to the power of Steem and thanks again for this 37% better return tip you shared. :)
Good information...
@jerrybanfield - It's very much an honor to find one of my posts linked on your blog. Thank you my friend and keep up the excellent work!
Thanks Jerry. Nice and clear.. I had also come to this conclusion.. in summary - if steem is trading above US$1 - then we should continue to use 50%:50% split for our posts.
I am also trying to find an easy way to calculate what my voting power is worth if I invest more money.. do you know an easy way to do this? i.e be able to enter in SP value and see what a 100% vote would be worth.
@jerrybanfield great post! Probz from germany
that is incredible :D
Interesting. I had to read it twice. Lots of info. Might read it again. But this is very valuable information. So thank you.
I would challenge with Steem Power we don't even know what we earn because it's not liquid and isn't traded on any exchange. It's worth some amount in Steem when you power it down depending on what the developers decide between the time you power it down and the time you earn it.
The question is what are the tax implications of 100% Steem Power? Do the taxes take place after we power down or before? If in theory you earn more Steem with 50/50 but also have higher taxes then what is the end result?
Excellent point there. What do you do? 50/50 or the 100%, i currently have my setting at 100%.
This is known for a while now, so i keep on having it on 50-50. However , i never checked if on the steem market its disadvantageous to trade SBD, thanks for the info.
Thanks @jerrybanfield for sharing this profitable information, from now i will only use 50/50 payout option.
thank you for all of your most valuable content; you catalyzed our plunge into crypto
I will do that
Thanks for the updates. @jerrybanfield you're a blessing. I've been missing out on money.
Thanks for the info Jerry! Switching it of default
Das hab ich mir schan irgendwie gedacht
wow. I didn't realise that. I've use 100% at he moment.
Very cool, learning all sorts of new things on here each time I log on. Keep on Steemin' on.
Thanks Jerry! I will vote 50/50 when I'm able too! You'll have your loans paid off in no time, just keep doing what you're doing :)
Thanks for another great post Jerry :) appreciate you and the fact that you brought me to this awesome platform
Upvoted and Resteemed as always! Thanks for the usefull head up as always @jerrybanfield
Thanks @jerrybanfield for the tips. I've been wondering about this all day today, so it was funny that you posted this.
Oh yeah! Jerry droppin hot knowledge once again! Thank you man :)