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RE: A Blog Post
You can't prevent another pump. The only way to suppress prices is to create more of them, but because of their convertibility to steem this just creates more downward pressure on steem.
Also, bitshares didn't solve anything, and will continue to "work" as long as people believe it will, as far as the strength of the prices of some of the bitFiat go, because it's all rather circular and it's imaginary unbacked tokens backed by another unbacked token. Then again that's all modern currencies. The whole controversy over tether is not a question of whether they have the money now (okay, some of it is, a lot of it is, rather) but rather exactly how they acquired the money and what they have been doing with the money.
Well, I believe we can prevent it by changing the rules of the blockchain. One of the more popular suggestions is to allow STEEM to be converted directly to SBD at feed price, so that no matter how much SBD was trading for, anyone could buy STEEM at the current market price and mint SBD from it, effectively pegging SBD at $1.
One good thing about that is that your concern about creating downward pressure on STEEM is mitigated, since an amount of STEEM would actually have to be destroyed in order to facilitate the creation of SBD.
There are some concerns with this approach though. I've posted about it before but I'm not as concerned about some of the issues I brought up then, and I actually think it might be a decent idea to try it now... with a few other modifications.
I disagree. I read your position on Bitshares and I understand where you are coming from, especially with the "then again that's all modern currencies" part.
But I actually do think Bitshares solves an interesting problem; it serves as a decentralised "match-making service" to create matches between the risk-averse (businesses with operating costs) and the risk-tolerant (speculators and long-term investors).
I understand that it seems like smoke and mirrors on the surface, but I really don't think it's as placebo-driven as you make it out to be. I believe there's real value in the kind of decentralised risk-trading Bitshares makes possible, and I believe with more volume it would be a lot better. For now, Bitshares may not be perfect, but it definitely has the most stable decentralised pegs I know about.