SBD Still Tracking Steem, Not Dollar
Steem Dollars ($SBD) are meant to represent a dollar of Steem ($STEEM). However, due to the nature of the free market, this has rarely been the case. In the past year alone the Steem Dollar has been worth anywhere from $0.84 to $14.96. This variance has caused many to question whether it is worth trying to control the currency at all.
However, in recent months the Steem Dollar price has been steadily trending toward $1. Many advocates of Steem Dollar price control feel that this is an example of the efficacy of these controls. While I believe these control are working somewhat, I think there is a better explanation for the drop in the value of Steem Dollars.
Rather than consistently get closer to the dollar as price control policies take their effect, the price of Steem Dollars seems to be tracking that of Steem. Last month's price charts (below) illustrate a strong correlation between the two cryptocurrencies.
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