Are SBDs the best way to send the price of STEEM to the moon?

in GEMSlast month (edited)

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(Source: https://steemit.com/steem/@robertdurst10/steem-to-the-moon)

The most efficient way and least cost-intensive way of sending the price of STEEM to the moon might not be what you think...

If you've been around STEEM for any length of time, you likely have noticed the relationship between SBDs going up, and then eventually STEEM following suit and going up as well...

Coincidence?

Maybe.

Probably not...

It could very well be that the same group of very enthusiastic investors that purchase SBDs on the Upbit Exchange just so happen to also like purchasing STEEM as well...

That's certainly possible.

However, there's most likely a lot more to it than that...

You see, with SBDs having a relatively small supply, it takes a relatively small amount of money to push up the price of SBDs compared with something like STEEM that has a much larger supply.

Neither have a ton of liquid supply on Exchanges, but SBDs have orders of magnitude less.

Therefore, it takes considerably less money to double (or 10x) the price of SBDs vs the price of STEEM.

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(Source: https://steemworld.org/@jrcornel)

What's more...

If that was it, there wouldn't be much to this story, but there's an interesting link/relationship between SBDs and STEEM...

When SBDs go up, they also tend to have a bullish impact on the price of STEEM as well.

And that is all related to the internal market on steemit.com...

When someone earns SBDs on a blog post for example, they can then take those SBDs go to the internal market and exchange them for the market priced SBD.

Which means, if SBDs are trading "high" like they are now, you get a lot more STEEM than you would normally if SBDs were trading around a dollar.

In layman's terms, when SBDs go up like this, it creates a lot more demand in STEEM via the internal market as people swap their SBDs for STEEM.

The longer this lasts, the more of the STEEM supply they absorb.

While it's tough to quantify exactly how much real buy pressure this puts into STEEM, it's pretty much undeniable that it definitely creates "some", if not a substantial amount.

Therefore, the most cost-efficient way to push the price of STEEM up may in fact be to push the price of SBDs up and hold them there for a long period of time.

Because, eventually, that helps also pull the price of STEEM up as well.

I think that is exactly what we have been seeing with STEEM lately and will continue to see over the coming months.

Whoever is pumping SBDs currently on the Upbit Exchange has likely figured this out, and if they continue to do so, or pushes them all the way to something like say $100, then the price of STEEM will likely go to $20 or more...

Which means, the key to high STEEM prices may be to pump the price of SBD has high as possible. :)

Something to think about...

Stay informed my friends.

-Doc

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Yes. SBD will reach $100. And Steem will follow.

Awesome explanation, thank you for this professional analysis.

Thank you. Here's to hoping whoever is pushing SBDs up continues to do so and has much higher prices in mind! :)

I can’t wait for the SBD price to jump to $ 100

But it has 81 reputation and very little SP for that reputation, yet here you are. Do you really feel what you publish?

People have their STEEM in many different places. There is plenty here, trust me.

I know my friend, I comment it to Mr. Dorbatin because he reproached me through a post that I had a reputation over 60 without having SP, he said that this kind of people did not understand STEEM and only thought about their needs. This offended me because I was a loyal follower of his until he gave me that blow (well clearly I am in that situation) Regarding you I have nothing to reproach, my comment is trying to understand why it was said what was said. So please put your guns away 👍

Cheers, by the way, your article is very good, believe it or not a couple of days ago I was thinking about how the price of SBD contributes to the rise of STEEM.

Well friend I will tell you this: Our reputation rises, because of the votes that others make, it is only fair that we also have enough voting power to vote well for others who started with nothing, just like us. A big greeting

Tbh, $100 SBD would be insane 😂. Anything can happen though and i believe STEEM is still at the accumulation stage(Looking at its monthly timeframe on Binance). Just a little pop up, then the rush towards $8 begins. Nice analysis✌

I agree with you. Looking at the longer term charts, it looks like STEEM is setting up to take out those old all time highs.

I also think the same thing, I think the price of the sbd is being bombarded as you say with the aim of the steem rising, if the sbd reached $ 100, the steem would be at $ 20 plus steem on I think we will see it in the following months, greetings friend!!

SBD to the moon first
I like this post

great insight,,,well done, I will keep following how the trends goes

The SBD price is already at a good level, can it touch $ 100? in a bullish market like this, anything is possible.

Furthermore, Steem is still far from his ATH of over $ 8. Things could change quickly 😎

Yep exactly. If whoever is pumping SBDs just holds it here it will continue to put a bid under STEEM. If they pump SBDs to $20-$30 or even $100, the sky is the limit for STEEM...

Absolutely spot on... thanks for the insight

I think next time around I'm just going to buy a bunch of SBD because that can be a 10X.

Wow, I haven't thought about this before, but this is truly logical and reasonable! Thanks for teaching me and telling me about something new and very very interesting!!

Your view does make a lot of sense and it's hard not to agree with your logic @jrcornel

Surely many people must be wondering - who is buying SBD with current levels (and someone need to do that to counter every day selling pressure from content creators rewards being dumped daily on the markets).

Cheers, Piotr

Wow! That was a fantastic explanation thank you

interesting explanation of steem and SBD.