Have you noticed that the bid-bots are rather quiet?
The current price of a 1 SBD at bittrex is currently just over $14. Surely we should all be cashing our hard-earned SBD's out this instant?
I certainly wouldn't advice against doing this, or heading to the internal market to buy some STEEM and powering that up. Maybe you'd like to do a bit of both, that makes sense too. So why am I sending 10.5 SBD to a bid-bot, worth around $147 at the time of typing?
Lets see what the math says...
source
I sent 10.5 SBD over during @buildawhale's last bidding round, you can see the results of this using a couple of tools:
@yabapmatt's bottracker, that @aggroed has recently got involved in, presumably after a couple of lemonade's last weekend when they met to set the bid-bot world and Steemit to rights.
I also like to check this tool: https://steemworld.org which is a pretty decent live feed of the action regarding an individuals account.
As you can see, they are quite closely matched in showing potential payout, which is around $25.50.
So what's the deal here? Sending $147 worth of SBDs (bittrex price) over to a bid-bot, for a $25.50 return, which also reduces at payout due to Curation rewards?
ARE YOU NUTS? Lets see......
Looking at this reward alone, separate from the total reward of the post, we will assume that the final reward will be $25. I'm going to take 25% curation rewards from this (even though this is likely to be closer to 20% - see this post and top comment for details)
So 25% of $25 is $18.75, worse case scenario with regards to curation reward deduction at post payout time. Lets round it up to $19 just to be kind and make the numbers easier.
This is looking pretty dire, yes? $19? Not worth it! bid-bots are bad for Steemit, etc - What and taking your SBDs out of the platform to the exchanges is good?
I've chosen 50%/50% for this post - 50% Powered up STEEM, and 50% in SBDs. So I divide $19 into 2, and get the following:
$9.50 worth of Steem Power
$9.50 worth of SBDs
$9.50 in Steem Power is, at the time of writing, $9.50 divided by the current market price of STEEM - approximately $1.94. This totals 4.89 Steem Power. Well.. it's a start!
Next up, $9.50 worth of SBDs. Misleading on the payout screens, and should be something like 9.5 SBDs. So pretty much what was sent to @buildawhale in the first place.
Did i win or lose then?
In this particular bidding round, I calculate pretty much broke even - assuming the price of SBDs is the same when my post pays out.
Are my calcs. right? Anyone?!
Cheers
Asher @abh12345