Why Steem Decreasing in Value is a Good Thing For Steemit Authors
steemiteducation·@briggsy·
0.000 HBDWhy Steem Decreasing in Value is a Good Thing For Steemit Authors
 --- When you get a post payout as an author, the *How* and the *Why* can be confusing to new and old Steemians alike. The short answer: If both Steem and Steem Dollars are worth more than 1 US Dollar each, then you should go 50/50 on your reward for posts and comments. Actually, for those who aren't wealthy in Steem Power it's generally advisable to go 50/50 regardless, because Steem Dollars are liquid and can be used to grow your Steem Power faster, or cash out, or even gain interest if the price of Steem Backed Dollars were to dip below the US Dollar. --- But such a dumbed down explanation doesn't really explain much, especially as to why the price of Steem going down can be seen as a good thing. --- Let's break down your post rewards, as they are currently being calculated *(this calculation might be subject to change with any future updates)*. Regardless of whether you choose to be paid out in 100% steem power, or 50% Steem Dollars and 50% Steem Power, the calculation starts off the same.  --- Let's pretend you have a post coming up on it's 7-day mark, and you see that the post will be getting a payout of $100.00  First Deduct 25% of that amount for Curators. As the author, you're now left with 75%, or in this case $75.00 of the reward. The next part is where things might seem needlessly confusing. ### If you chose to be paid out 50/50: - you would receive 37.500 Steem Dollars, regardless of the market value of SBD. - you would receive $37.50 US Dollars worth of Steem Power, based on the 3.5 day average US Dollar value of Steem. ### If you chose to be paid out 100% in Steem Power: - you would receive $75.00 US Dollars worth of Steem Power, based on the 3.5 day average US Dollar value of Steem. > so SP Payout = (post reward x 0.75) x (payout percent for SP ÷ 100) x (1 ÷ 3.5 day average Steem Price in US Dollars) If Steem and the Steem Dollar were both worth $1 US Dollar, than both the 50/50 and 100% payout options would be the same in value, but you would be better off going 50/50 to at least get your liquid Steem Dollars, in order to promote your more recent content, or whatever you like to do with your Steem Dollars. --- So the only question then is, "how do I find out what the 3.5 day average value of Steem is?" and, "Why 3.5 days?" The 3.5 day rolling average used to be a 7 day average, as this was the time it took to convert Steem Dollars into Steem, back before Steem Dollars became as liquid as they are now. Your estimated account value in your Steemit wallet still reflects this 3.5 day rolling average price of Steem in US Dollars. If you go to [Steemnow.com](steemnow.com) (created by @penguinpablo) you will see a price at the top right hand corner of the website. This is the 3.5 day rolling average price of Steem.  --- So to get back to the original point of this post, I believe you may now understand why the price of Steem dropping is a great thing for authors who are trying to build up their steem power. While one might argue that it's all relative in comparison to fiat money value, it is not. More Steem Power ultimately means more influence on the platform, while having Steem that is worth more makes it harder for authors to build Steem Power. Thank you for reading. Hope this helps alleviate any concern people have about the price of Steem dipping right now, because every rain cloud has a silver lining.  [*source*](https://media.istockphoto.com/photos/morning-sunrise-photo-depicts-actual-cloud-with-silver-lining-picture-id183024105?k=6&m=183024105&s=612x612&w=0&h=tRRxPYcC8gHzkvBnCNVBvA4hZX_K4E9P6Fy54y727wM=) --- > ##### Tip Jar: > [Dogecoin DDizpbLrYzFNEZtEVvUXo8kKBKu3K7yLry](https://dogechain.info/address/DDizpbLrYzFNEZtEVvUXo8kKBKu3K7yLry)   --- #### As always; good luck, good wealth and good health to everyone on Steemit. Stay positive towards others and help the community grow. Thank you for reading and sharing. Comments are always welcome.
👍 briggsy, tux6845, preity15, antimetica, markop, saifulsabri, zekepickleman, oboy, sbi2, bozz, cryptomaker, michaelburke, abhisteem13, jonknight, onlineguru78, lemondropsblue, sequentialvibe, steemit-turkey, telos, brittuf, pawansharma, mrbean1, pushup, minnowhelper, randowhale, leoumesh, doctorrevelator, gunthertopp, eikejanssen, michellectv, zyl, urs, pyroisntfire, jerrybanfield, danielrkaufmann, dkpoker, buildawhale, adriatik, lovemyson,