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RE: Who is paying for your Author Rewards?

in #steem7 years ago (edited)

@demotruk

Thank you I thought that would happen , Yes i do use the market get a bit of a deal now and again:), I do not think people will convert there SBD into Steem unless they are trying to build a long term portfolio . I am sure most people just send there SBD to exchanges to get pay out ...

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Steem Power is what allows you to allocate newly created Steem Dollars. It is only natural that the value of Steem is increased by higher than normal SBD prices, since you're allocating more purchasing power. That purchasing power can be directed towards increasing your Steem Power further, creating a feedback loop (a bit like compounding interest).