I still dont understand WHAT is supposed to keep the SBD worth 1 USD ... everyone seems so suprised by this - but wont the freemarket decide, and continue to decide its value?
I still dont understand WHAT is supposed to keep the SBD worth 1 USD ... everyone seems so suprised by this - but wont the freemarket decide, and continue to decide its value?
The mechanism for keeping it pegged is basically the same as USDT... and that's working just fine. The main difference is volume and understanding. As SBD supply grows and everyone understands that an SBD is always convertible for $1 usd worth of STEEM, the price will start to reflect that IMO. Right now there is nothing keeping SBDs from trading higher but there is something keeping it from trading lower than $1 usd. If SBDs trade lower than $1 usd there is an arbitrage opportunity in that you can just keep buying them and converting them into 1 usd worth of STEEM. That arbitrage opportunity always brings the price back up to $1. And... if SBD every becomes easy to short... than that would also put a lot of downwards pressure on the price back to $1.
Thank you for your reply... It is becoming clearer now, but I guess the main force for SBD being so valued right now is --- bots and Hodlers? It seems to be the main currency accepted by the bots.