A little bit of a green day today.
STEEM has gone up 25% percent from it's low of $1.50.
My investment plan is still unchanged.
What people have noticed is that the payouts have changed on the steem blockchain.
You now get a little bit of STEEM with your payout as well.
I believe it has to do with the massive amounts of SBD's that have been printed lately.
This is my personal simplified explanation.
An SBD is always worth $1 dollar worth of STEEM through a convert function build in the blockchain. (it's removed from the website currently but it's possible).
So that means that with the use of this function 1 SBD at a STEEM price of $4 convert to 0.25 STEEM.
or
1 SBD at a STEEM price of $1 converts to 1 STEEM.
or
1 SBD at a STEEM price of $0.25 converts to 4 STEEM.
Now it's easy to see that when the STEEM price goes lower more STEEM is needed to back up the debt (SBD).
That's the reason why you now get a little liquid STEEM and a little less SBD for your post today and I expect this to increase if STEEM goes lower in price.
SBD print rate is now 97,66% instead of 100%.
I talk about it more in my vlog.
@blockbrothers for the Steem blockchain. If you want to support us I would appreciate your vote here.Get it Here:
