Yesterday I wrote that I was trying to determine what to do about these SBDs and what is the best approach.
To be honest, I do not know what the answer is.
There are a lot of variables I pondered as to what the best approach is. Some lead me to believe it is best to hold onto SBDs while others make me lean towards powering up.
I just had a discussion about this with @pandorasbox. There were some valid points brought up, one being that one never goes wrong taking a profit. Getting 6 STEEM for each SBD should be considered a profit...one people take advantage of.
That said, for those who follow @haejin, I think he is the best analyst on this site. He is very good at his technical analysis yet he is not perfect. He got me really excited with his call of $31.45 on SBD. That is 5 times where the present price is. Of course, any gains are potentially offset by an increase in the price of STEEM.
Here is his analysis on SBD:
https://steemit.com/bitcoin/@haejin/steem-dollar-sbd-target-usd31-45
@cryptoctopus wrote an excellent article about greed earlier today. It focused upon the debate to hodl SBD or power up. In short, he says it is a decision to earn a stream of income versus speculation on a gain that is possible ,yet "ridiculous". For him, the decision is easy. The gain in SBD is a gift, a means to power up quicker to enhance his power on here.
Here is his article:
https://steemit.com/greed/@cryptoctopus/accumulate-steempower-or-sell-sbd-at-the-top
There is validity to that outlook. This also brings up a basic question:
How many of us came to this blockchain to speculate on the token? Was that our motivation for being here? Speaking in the first person, is that why I am here?
The answer is obviously no. I came to steemit to create content in hopes of growing and getting paid for it. I like the community and want to see it enhanced. For this to happen, I have a responsibility to make myself as strong as I can so that I can empower others. It seems the more I analyze this, the less we are able to deny the endless loop that we find on here. Help others to help ourselves.
Therefore, I decided that I am converting 50% of the SBD I get to SP and powering up.
To me, this gives me the best of both worlds. If SBD is a pump and the price does head lower, I am booking some profits by taking half of the SBD I have coming in and powering up. This leaves the other half to speculate with in case @haejin's call is correct. Of course, I am still free to power up with the rest if I see the price of SBD going south.
I just converted 15 SBD and received 104.272 STEEM (6.98 STEEM per 1 SBD). I used https://steemit.com/market and enter the amount of 15 SBD in the SBD box on the buy side. The rest was filled in and I hit "buy steem". Once the STEEM hit my account, I hit power up in the drop down arrow which transferred the STEEM to SP. My SP is now 104.272 greater than it was before.
So what was my true gain there?
1 SBD entitles me to $1 of STEEM by design. Therefore, 15 SBD entitles me to $15 worth of STEEM. Using the price of $1.70, I normally would get 8.823 STEEM ($15 divided by $1.70). I received 104.272 STEEM which is 11.818 times what I normally would get.
So while there is such a great premium on SBD, this will be my approach. As things change, I will update everyone as to what I am doing. Obviously, these are my personal decisions and should not be taken as financial advice in any way, shape, or form.
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