Fundamental of Steems Vs SBD
What are they?
Steem
Steem coins the more you have the more you to Influence others.
Steem are coins that can use for
- Powering Up Account. ( aka Steem Power )
- Use for trading in Bids at Bid-Bots Center
- Can be sold in the Exchange for Cash
- Can be traded for other crypto currencies
- Can be use to delegate other account when Powering Up.
- Can be Lease in Delegation
SBD
SBD aka Steem Backed Dollars , This coins can be use to trade for your Steem coins.
SBD are coins that can use for
- Sbd can be swap for Steem coins
- Use for trading in Bids at Bid-Bots Center
- Can be sold in the Exchange for Cash
- Can be traded for other crypto currencies
When is the Time to hold these coins in liquid?
Currently, at the time of writing; It is advice to Hold on Steem coins as the SBD being produce there are more authors / users to want this coins.
The Ratio between this coins vary ; It used to be 1:1 ( steem : SBD ) but now it is approximately 2:1 at ratio ( steem : SBD )
Some say to abolish the SBD and just to keep the steem coins only.
What are your opinion on this two coins?
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One thing you forgot to point out as a difference is that SBD is a debt instrument. Essentially, you get paid now in debt (SBD) in which the debt is cashed out later.
This creates an incredible source of revenue into STEEM ecosystem. It is a mistake to call it pegged in the whitepaper and goes to show how Steemit Inc doesn't understand economics. Don't get me wrong, SBD is an amazing tool to have. Think of it like the US savings bond. Let's assume that the price of STEEM is over $1.00 and the price of SBD is over $1.00, then the community cost for that SBD is less than the current price, and is a great way to generate commerce and is a stimulant for the economy.
The problem is that everyone thinks that SBD is a pegged currency. Since the pegs are weak, both Steemit Inc and witnesses have manipulated the supply to inflate it. They did this two ways.
What really happened is that too much SBD was created and we Steemians were left holding the bag to cover the cost of SBD conversions (paying for the debt by inflating STEEM). What is crazy is that the whole idea to suppress the price of SBD is counter intuitive. All it does is cut off the revenue stream into STEEM ecosystem and cause the cost of SBD debt to be higher to pay.
The first step to fixing the problem is to get witnesses to take an economics class so they can understand the economic implications of a debt instrument. We also need to reverse the SBD change from HF-20. At least we wouldn't be printing SBD when there is a 2:1 conversion ratio while we are at the very edge of the cost of that debt being too high.
Do we get rid of SBD? Absolutely Not.
Great break down @socky I have been looking for the information of the change in SBD and never got any info that made sence to me.. :(
I agree, economy class would have been usefull befor HF20...
Before the change went into place (before HF20), I suggested that the change was going to be dangerous. I also recommended that witnesses and Steemit Inc consult an economics expert before implementing the change. None of the witnesses or Steemit Inc consulted an economics expert.
Thanks for responding & im sorry im late to respond.. So if it was informed by you, that they actually should take a economy -class or/and listen to your point. I cant understand why this wasent listen to.. :( currency and debt isent a -wing it thing, everything you do will have a concequence and effect.
I see your running for witness, i will take a closer looksy into this :)
I have a group of people that are willing to cast a witness vote to encourage witnesses to get STEEM or SBD listed on major exchanges. That is the only thing related to witness that I do. I am not a witness. Witness votes don't affect your earnings and can be reversed at any time. If you would like to join by simply promising a witness vote, then follow this link. https://steemit.com/witness/@socky/4kl87r-how-you-can-get-steem-or-sbd-on-an-exchange
ha ha nooow your post makes sooo much more sence to me LOL soo sorry, i wasent 100% paying attention... :(
Thanks for link :D Il try and read up on that, im streatched for time this week, so the weekend :)
Ha ha im familliar with witnesses and their job, but thanks for the info 🐲ℒℴve 🐉
I would love to pick your brain ; if you hade some time over ? about - distrebution/mining of STEEM & how Hf are desided, and a bit of other stuffies ;)
Now the comparison is very different but I see that steem is a living coin, and can make a strong account with lots of strength.
having a lot of steem will make an account pursued, valued and respected.
I realise it ads an additonal layer of complexity for new users but I think it serves more of a purpose to have the 2 coins. Eventually once SMT's roll around and tokens are built on top of STEEM it could provide more options for trading pairs and keep value moving through the ecosystem
@chekohler
SMT creating more opt? These Tokens will creates more confusion rather than Fixing up The Steems Values ; somewhere the originality of Steems once intro will be lost. Many may thinks it is a good ideas.
Why creating so many products when The Original one can't even maintain itself?
Thinks about it!
my 2 cents, im sitting on my SBD as i think there will be a rethink about the effect HF20 hade on the platform. I got time, il just sit and wait ;)
I don't understand why Steem isn't shared anymore. and I do not agree if the sbd is abolished. because someone's wishes are different. sometimes someone wants steem even though the current price is low. and sometimes someone wants it. therefore, these two coins must always be there.
and I am very grateful now that the power power is more distributed than at the same time. because this in my opinion is currently the most appropriate for increasing steem power. even though prices are currently low but the current price situation has benefits. I remember when I just joined this steem platform. me and my friends complained that it was very difficult to get more power. because first the price of steem is higher than sbd. although exchanged only get a little. and now steem power is higher than sbd, and the sbd price is higher than steem. Now in my opinion it's time to collect as much steem power as possible. and I am sure that in the future Steem and SBD will increase again.
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Among them both have the same benefits in my opinion. But the decision is all depend in us. We must get the risk for what we take
I need SBD to pay for steemsql unless they change to take steem.
I prefer to STEEM and did power up, so that I can grow up faster on Steemit.