Is SBD much better $ pegged crypto asset
Below are crypo assets that are pegged to $ with different philosophy.
- CoinoUSD
- NuBits
- BitUSD
- Tether
- SBD
As per article Dollar-Denominated Cryptocurrencies: Flops and Tethered Success it is concluded that Tether is best currency to store $ value. However, recent development and doubts whether Tether really holds equivalent US$ in bank accounts to back supplied Tethers raises doubt about the conclusion of the author. Author actually did not discuss about SBD.
Below is my analysis that SBD is much better and stable crypto asset to store $ value for below mentioned reason
- It does not require to hold equivalent amount of $ in banks - as required by Tether
- Its supply can not be increased just by demand increase at the whims of one party or even market as in case of Tether, bitUSD, CoinoUSD, and NuBits and hence can not be used to manipulate other markets as Tether is being blamed - Tether Supply Causing BTC boom
Look at the below charts for Tether and SBD
Is Steem Dollar actually pegged to the US Dollar?
Especially when it gets pumped and dumped like it did this morning.
I think it is just represents one US dollar as a method of trade. When STEEM is below Steem Dollar in price, is means STEEM is valued less than the going rate of the US Dollar.
I'm not 100% sure of my explanation.
SBD supply in immediate future can not be increased a lot as in the case of other currencies. And that is the most important aspect why SBD will prove to me more valuable to hod USD value in SBD
SBD is added every day in the Rewards Pool. It is decreasing in the amount until Year 20, which it will level out at a 6% increase each day. So, while it can't be increased more than the amount it was the day before, it is increased on a regular basis.