How are you everyone?Today I will discuss with you about Steem doller. I am young and my experience is very little so please forgive me if there are any mistake.

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Steem Dollar (SBD) is one of the scariest cryptocurrencies on the market because we know nothing about them. Yet Steem Dollars was the ninth-most trending cryptocurrency on CoinMarketCap, with a coin value of $2.28 on 2 October 2023.
Horrifyingly, the only details on Steem Dollars I could find online were Steem's white paper, a six-year-old answer to a Steem question, and a five-year-old Medium post.
So what are Steem Dollars? They want the Steem Blockchain Dollar (SBD) to be a stablecoin. A stablecoin is a cryptocurrency that has a smart contract that pays in a fiat currency. For example, the Steem Dollar smart contract is supposed to be paid in US dollars.
Steem Dollar is a volatile stablecoin.

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The hope behind stablecoins is that they will be more stable because they pay in historically stable currencies like the US dollar. Unfortunately, Steem Dollars are not stable.
If Steem Dollar is a true stablecoin stable, SBD will be worth $1 like Tether (USDT). Nevertheless, on 2 October 2023, Steem Dollar (SBD) was worth $2.26 a coin. Hence, the value of Steem Dollars is more than double that of Dollars. In contrast, CoinMarketCap gave Tether (USDT) a $1 coin price on October 28, 2023.
So, Steem Dollar is unstable. I consider Steem Dollars unstable because there is no evidence that they pay in dollars. To illustrate, they envision Steem Dollars as convertible notes. A convertible note is a short-term debt instrument that converts into equity (shares) at a future date. For example, when a company is sold, or stock is issued.
Therefore, there is no dollar backing the Steem blockchain dollar. Instead, they promise to keep dollars for future payments. So, a Steem Dollar is an IOU. There is no proof that Steem has dollars and no guarantee that Steem will pay.
Today's discussion ends here. I hope you find it interesting and able to understand. Share your thoughts on today's topic. Wishes and blessings to all.