Vlog 327: With the future of SMT's in mind I think a safe heaven on the STEEM blockchain in the form of a stable SBD would be extremely valuable if it can be done.
I saw more than one post lately in favour of getting rid of the SBD's all together.
With the future of SMT's and businesses in mind I think a safe heaven on the STEEM blockchain in the form of SBD's would be extremely valuable if it can be done.
What is a SBD? (STEEM blockchain dollar):
An SBD is an IOU for 1 USD worth of STEEM.
There is a convert function build into the blockchain where you can always convert 1 SBD for 1 USD worth of STEEM.
This convert function is separate from the Internal Market.
That means that when STEEM is 50 cent you can convert 1 SBD into 2 STEEM.
It also means when STEEM is 2 USD you can convert 1 SBD into 0.5 STEEM.
It's an extremely useful token when it works. A fantastic safe-heaven/hedge against falling crypto prices.
Sadly crypto markets are weird and 1 SBD that is only worth 1 USD of STEEM is trading much higher causing tons of confusion. (max was 17 USD, now 1.25 USD).
It therefor can also not fulfil it's roll as safe-heaven because it will just fall with the rest of the crypto markets.
Back when it was trading high I was not a fan of any peg because it would just piss off a ton of people (from bloggers to traders).
Now however, the SBD is nearing it's intended value (trading atm @ 1,25 USD).
I currently start to look at it again as a safe heaven (it can only max drop 20% while the rest of the markets can still drop way more) and in bearish times it's fantastic to have something like this.
With the future of SMT's in mind I think a safe heaven on the STEEM blockchain would be therefor extremely valuable.
The discussion should take place now. As soon as the markets turn the SBD will go up too and the window is gone.
I talk about it more in my vlog.
I am a witness with our developer group @blockbrothers for the Steem blockchain. If you want to support us I would appreciate your vote here.
We build Steemify a notification app for your Steemit account for iOS.
Get it Here:
My video is at DLive
My dear @exyle, I tell you now here with confidence, you as a man who knows the news, because nobody is a secret that my beautiful country that I love so much, is going through a very critical situation with respect to the economy, and I open my heart, if at this moment there was no STEEMIT, I do not know what my life would be like or where I would be now, I live thanks to my God and the great platform steemit, I am just beginning and that my reputation is very low, and maybe my publications they are not high quality for many readers and followers, but something if I tell you, everything I do I put my soul and my heart, everything I can publish I put passion, if I would like that many could see my work and support me, but I accept with humility and gratitude, what I have achieved is to be here, I follow him every day because I see that he has a big heart and always supports my comments, which I do in a very sincere way.
With regard to the currency, I would like to have a much higher impetus and momentum, my only son is getting married this year and I would like to support him with a small meeting between friends, but all that is a lot of money, but I have the faith of that I will achieve it, according to your studies, please keep us informed if the sbd or the steem will increase, I will thank you for my most cordial greetings, my dear @exyle.
Mark @exyle I don't think there is any reason to get rid of the SBD. It has it's use within the STEEM Block Chain and as a Hedge it is perfect..........
when sbd started it was around 0.8 dollar why you think It wont go down as well ( if for some reason people start to think that steem will have no longer value then sbd will crash as well).
Example: If STEEM would go to 20 cent and SBD would go to 20 cent that would mean I could buy an SBD for 20cent on an exchange then convert it to $1 worth of STEEM with the blockchain function and I would receive 5 STEEM. This will not happen to many people know.
I understand your point but where do we find the blockchain function(where 1 SBD is always worth 1 dollar of steem)?
I mostly used exchanges or internal market to trade sbd for steem and vice versa.
There used to be an option for it on steemit.com but they removed it after people started to convert 1 SBD (worth $10 USD back then) ---> $1 USD worth of STEEM. Some people got really burned.
I expect this option to come back when 1 SBD is back where it belongs.
It would be an absolute mistake to eliminate SBD, which has brought in so much capital to the system.
Thanks for this video! I saw this argument kick up and I was really not sure on how it all works but your break down helped a lot. So in short this is good for me as a new user on the platform and steem blockchain. I have finally started making some $ on some of my posts thanks to upvotes on Dtube and persons like yourself @exyle. But yeah regardless of where things are sitting im all in for the platform and helping it grow. PS im running a DTube contest where you can win animations for your videos. Perhaps you would be interested. I have 5 different renders available in this weeks contest :)
I think you're right. It will indeed be valuable if SBD can have a more stable value. I hope they could consider doing something about it though it would still depend on traders themselves. If they decide to buy and buy more SBD over STEEM then the price of it will of course eventually increase according to buy demands.
I'd like the witnesses to keep paying out the SBD hand over fist until it's back to $1.
The fact is, pump and dumps aside, it's irrational for someone to buy 1 SBD for more than US$1; and the ecosystem was designed assuming people would act rationally, so all of the safeguards were built assuming the SBD might need to be pushed up.
I doubt anyone considered it would ever need to be pulled down.
That's true but sadly for us markets are not rational and the safe heaven function for an SBD is therefor not working at the moment.
And printing more SBD's is not that easy when the STEEM price goes down as well. (I get more and more liquid STEEM for my posts in the paypouts).
All those SBD's need to be backed in the end by STEEM.
I agree with this not only for the safe haven aspect it provides but because having a stable coin on the platform makes it way easier for businesses to establish here, because they won't have to worry about volatile currency prices and by removing sbd you make the volatility problem worse...
The people asking to remove sbd just want a pump to steem price, we all want that but having a pegged sbd will also be a good benefit for the long term health of the platform as a whole.
Thanks for infor was unclear what SBD was
It's very good news for investor. Obviously in future it will be a safe heaven on the STEEM blockchain for investment. This is very hopeful. Thanks sir @exyle.