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RE: STEEM DOLLAR (SBD) Target $31.45
I still don't understand why steam dollars is worth more than steam. Totally blows my mind. I thought it was suppose to pegged to dollar. Oh well lol
I still don't understand why steam dollars is worth more than steam. Totally blows my mind. I thought it was suppose to pegged to dollar. Oh well lol
I am surprised as well.
actually Steem dollars can be redeemed to 1 dollar worth of Steem, making an arbitrage profitable for SBD bought for a lesser price on an the market, to convert to Steem, then repeat.
but it seems there is no way to do the reverse. ( by example converting Steem to receive sbd at a rate of 1sbd=1usd even though they could be sold for more on the market or exchanges )
So is it an anomaly, or will events justify this forecast (new utility for Steem dollars, reintroduction of interest on SBD holding... ?)
Supply and demand. SBD can be bought on Bittrex, Poloniex(in theory), and Blocktrade.us. It's on Coinmarketcap and people see the percentage gains every day. Our low supply in circulation has a lot to do with it too. Only 3.6 million compared to Bitcoin's 16.7 million. You're not seeing the same price action with Steem because there are 246.3 million Steem tokens in circulation. The volume has to be there to move Steem more than SBD because there's a lot more Steem to move.
It is kind of topsy turvy. What I hope happens is people realize they can use that SBD to reinvest into Steem. This should drive the price of Steem up too. I don't think we'll see SBD trading around $30+ and Steem is still under $10. I think they'll both be linked and will rise together, I just think SBD does it quicker because of the previously-mentioned reasons.
One does wonder what this means for the entire concept of being pegged to the dollar. I think there are benefits this could bring to content creators and authors on the platform. Any rise in SBD makes posting much more valuable. That only helps Steemit IMHO. It's important to remember that SBD is part of an ecosystem that is not static. They were meant to be a place to hold your money if Steem were too volatile. Being pegged to the dollar gives it some appeal.
In a low volatility market, if it's low, SBD can be great to hold due to the 10% return you get on the balance. However, when it's above $1, the interest is disabled. So they created SBD anticipating what it's currently doing.
None of those factors are considered when projecting the price pathway.....it is 100% purely based on price action. Market Cap, circulation, etc honestly have nothing to do with it's trade price, despite popular opinion. This has been proven over and over and over in this blog with coins that were never supposed to be able to get above a certain amount, or because the coin has a huge daily inflation (EOS)......believe it or not, it just doesn't drive the market, sentiment does....and that's what we're measuring here.
I believe that 1$ pegging applies to steemit only. If you withdraw 1 SBD from your Steemit account only 1 USD is removed from your balance. So it's only 1$ on steemit and it can be any amount outside of it.
Right....best to sell it at market value.
I'd like to see the links to this information if you know where they are. I'm not saying you're wrong, as I know it's deeper than simple supply and demand. I have a hard time wrapping my head around the concept that it plays no role at all. I don't think all movement is purely technical, but I'm open to competing ideas.
I will be completely candid about this. It is a very hard concept to get the human mind to bind to, and absolutely there are many many people who wholeheartedly disagree with pure Technical Analysis.
As humans, we NEED to attach meaning to everything to make sense of the environment around us, and we NEED to have a cause and effect, if for nothing other than to keep us sane in many cases.
Ohhh man....this could get pretty long and deep....let's start here...this is an essay that Haejin, the author of this blog, wrote a while back that explains much of what I would be getting at here: https://steemit.com/bitcoin/@haejin/essay-is-technical-analysis-a-quantum-event
I personally would love to discuss it with you, but I am about to leave work at this moment. Do you have Telegram? This is more of a conversation than just a statement. Check your wallet.
Are you on Discord?