Steemit Crypto Academy week 6 - Stable coins: SBD: Professor: @yohan2on

Hello to the Steemit community, and especially to the SteemitCryptoAcademy community, today I want to present my research on Steem Backed Dollar (SBD), it is TASK 6, from professor @yohan2on, on stable coins. Let's start with the investigation:

WHAT IS STEEM BACKET DOLLAR (SBD)?

I can say that it is a secondary currency of the Steemit Blockchain. The main currency is Steem. But SBD aims to stabilize the overall blockchain economy. By having a stabilization of this currency, a healthy and functional economy is generated for all the participants of the blockchain.

The SBD is a cryptocurrency anchored or tries to anchor itself to the value of the US dollar. And it is backed by Steem, at the moment of my research 1 SBD equals 12,122 Steem.

If the market capitalization of both cryptocurrencies meet some parameters, we can say that this equivalence can be maintained. Although last year (2020), we have seen a fluctuation of this equivalence, being in some months of the year around 6 Steem for each SBD and in other months it has reached 15 Steem for each SBD.

SBD tokens are liquid, they can be exchanged to US dollars or to another fiat currency. It can also be exchanged to other cryptocurrencies.

In the steemit wallet you can see the amount of SBD that your Steemit account is generating. Now, I want to explain how SBDs are converted to Steem immediately, in the same steemit wallet.

HISTORICAL PRICE OF THE SBD

Next, I show you the historical record, since the Steemit platform was launched in 2016.

Where we can see some peaks in the graph.

HOW TO TURN SBD INTO STEEM?

Being in the Steemit Wallet, I started the session. On the Steem dollar line, click on the tab with a downward arrow. And a new window is displayed, click on market, as it appears in the figure below.

A new screen is generated, where you place the amount of SBD that you want to convert into Steem, taking into account that the price is the lowest and you click to buy. As shown in the figure below.

A tab appears to confirm the order, click Ok, as it appears in the following screenshot.

The order is generated, a notice appears with the order number.

One open order remains, but this is for a few seconds, because the conversion from SBD to Steem is almost instantaneous.

In this way we can convert SBDs to Steem, for example, to later convert them into Steem Power (SP).

SBD STABILITY PROBLEM

It has not remained stable since its creation, however, it is less volatile than Steem, which generates more confidence when it is accepted as a form of payment.

When the value of the SBD cryptocurrency is less than a dollar, the good thing is that it can be exchanged by Steem for the value of $ 1. But when its value is higher, there is no easy way to reduce its price.

Steemit witnesses, quarterly can change the interest rate, for the amount of SBD stored in our wallet.

CONCLUSION

It is a secondary currency of Steemit, but it is liquid.

Its algorithm is designed so that its value is approximately $ 1.00. In recent months its value has been on the rise.

I think it is a currency that will continue to rise in the coming years, even when it is anchored to the US dollar.

It is a cryptocurrency that generates greater confidence for investment and to be accepted by companies as a form of payment.

This is my research, thanks to professor @yohan2on for the classes given.