Vlog 198: Enforce the SBD peg or not?

in #life3 years ago


There is a discussion going on at the moment whether the SBD (Steem blockchain dollar) should always be worth $1 worth of STEEM or not. here

Currently, with a STEEM price of $4, it's way more. Around 1.5 STEEM (or $6 USD).

If the peg would be enforced an SBD would be worth 0.25 STEEM. (or $1 USD).

The reason the price has gone up so much is that there is no upper limit to what an SBD can be worth. There is only an under limit.

To enforce the peg a reverse conversion is suggested.

Currently, you can convert SBD to STEEM (takes 3.5 days) but not the other way around!

4000 SBD will turn into 1000 STEEM (at current prices) for example. And clearly, this is a very bad deal!

With a reverse conversion, the peg can be enforced.

With a STEEM price of $4, you can then turn 1000 STEEM into 4000 SBD.

Basically, you can turn $4000 worth of STEEM into $24000 worth of SBD.

This will surely bring down the price of SBD until it's 1 dollar worth of STEEM.

But to do it now will be very disruptive in my opinion.

It's great for people that know, like you and me, but for the people on exchanges, it will be devastating. Basically, they would feel fucked by the STEEM blockchain when the price tanks.

Not great.

Don't get me wrong, in the long run, I am in favor of a stable SBD.

But currently, the high SBD is helping grow this platform with more content creation but more important, development.

I notice this myself now that my witness @blockbrothers can afford to pay an external Android dev with SBD (converted to euro) and also pay for 5 servers. Our Steemify server being one them.

To enforce this peg now would be a mistake. I would wait until STEEM price goes up and more SBD's are created automatically bringing down the price of SBD closer to the peg.

That would be the moment to implement this change.

Nondisruptive.

I talk about it more in my vlog



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I agree with all you said. Steemit knows an massive growth because of this, it would be very bad to take this away right now! all vote for the right witnesses!

How about this: You stay the fuck away from SBD and you create your own USD-pegged crypto currency? =)

Hell no... Are you kidding me or are you out of your mind? What you are saying is you want to make everyone on Steemit poorer. No! SBD is, as I've said before, being traded as a regular token as we speak, i.e. free market forces are deciding its price based on voluntary interaction. You wanna peg BTC? Maybe we should peg Litecoin? Or maybe find a peg for NEO?

Because of the FREE MARKET'S VOLUNTARY choice to trade SBD in an OPEN, FREE MARKET environment, EVERYONE (you, me and every small Steemit user) is not much wealthier, i.e. the incentives are HUGE to come here right now and make projects, write articles, curate and comment. You're saying you want to take that away. Not only that, but you want to make it SIX TIMES LESS profitable to join Steemit.

Just stop it... I get that you're really comfortable in your own little bubble somewhere in Europe, but just stop this crap and let the free market trade whatever they want however they see fit.

Did you even read the post (or watch the vlog) or are you just blurting out some random opinion?

I did. It seems he's in favor of it... Just not now. Let's make everyone poorer... later?

Or maybe you know something I don't? Can you explain?

Well, he is not in favour of changing it, so I'm confused about your comments here. He might have to adjust that opinion in the future, but who knows what will happen tomorrow?

Anyway, maybe you should read the Steem whitepaper, it explains why the SBD even exists and the mechanics behind it.

Oh, I see! I must have misunderstood. Well, I mean, antibiotics did not come into existence to cure disease, right? So what something was "meant to" be for is not an argument for destroying an entire market of investors, traders and content creators. Only a crazy person would be in favor of destroying 600% of something's value.

I am in favor of this high price cause the system come up with it and it pushes every authors to write and contribute to steem value.
There were another post yesterday on a similar reply.
If steem valuation is within $10B, it will make sense to make sure SBD is truly pegged to the dollar.
Now let the steem grows accordingly.

Now it is a good time to use our voting system to keep steem flourish and stay a contender in the months to come.

Keep on steemin’

There are two cases. Keep the thing the way it was designed or change it as it not hard and fast rule that whatever you have designed in the past is correct or not changeable.
If SBD was designed to be always worth of $1 and steem to fluctuate then they should be kept that way. Reason is you have one currency which can be used by others/investors to manipulate while SBD will be kept the standard unit for payment dealing. This has long term effects.In the long run we will benefit from it when all the stores offline and online has started using SBD for the payment.

=======================================================

When it comes about the author and post rewards scanerio, think it as when SBD was $1 worth. Then we all survived and we were happy with that. Even that was the difficult time because you had very small community and not a very big market cap. So you might be earning less money now if this happens but it will give rise to the usage of steem blockchain resulting in the marketing of steemit and attracting new users. So then you would be able to earn more by having more followers and taking your content to bigger audience. So if you want more reward then work on your quality and reach.

I agree with you. Dont destroy a working system. The increasing price of SBD is working to grow the platform with both development and content creation. That is only a good thing.

Correct. It only works as a way into Steemit for new users. There is 7 times more value to be earned here. Removing X7 of the economic incentives? NO! Insanity! Leave it alone!

Currently, you can convert SBD to STEEM (takes 3.5 days) but not the other way around!

How is this possible? Previously it was instant.

The convert option has been removed from the wallet. I know when Bianca did it by accident a couple of months ago it took days to convert and she got way less steem (SBD --> $1 worth of STEEM) than when she would have used the internal markets.

I am talking about the internal market.

I think that makes sense to me. I'd agree it would be harsh on those investing in sbd away from steemit too. There must [as you say] be more organic ways for this to happen and it may just be a temporary problem that will iron out as steem gains value. It flipped last week sometime [steem overtook sbd by cents], so we can see it's not particularly stable anyhow. Wait and watch would be my idea of a good action for now.

Interesting post. I believe this is a good think that SBD is so high. It is great for people who are producing the content. Dan Larimer also said that it is the market viewing SBD as the independent currency. No need to enforce anything, let the market decide the price.

Yup. Dan said exactly what I have repeated before: It's traded as any alt-coin. Why shouldn't we let it be traded as such? Maybe we should stive to make everyone 6 times POORER?

Yes, I mention that in my vlog. Current SBD price is awesome for content creators and developers indeed.

Smart Man !

I'd rather peg the value of SBD to gold or silver than to any fiat currency. Why peg to something that is always losing value and has the potential to go to 0 ? Gold, while it's price fluctuates, will never drop to 0 ! ...ever! I'm fundamentally against pegging SBD to value that can be printed out of existence; we already have that, they're called Dollars, Euros, Yuan, Rubble, Intis, Soles de Oro, Pesos, LBS, Bolivares etc. I have a bank note of 1 million Intis, and you can't buy toilet paper with it.

I agree, the USD has currently been trending down for awhile. Why should we be peg the SBD to an asset that is falling in value? What if crypto-currency is the future and (eventually) all fiat money becomes nearly worthless. I do understand the desire to have a stable value for the SBD though. This is not a simple problem to solve.

All fiat currencies will eventually drop to zero; this is mathematically inevitable. It may take 500 years or 500 days, but go down it will. Gold does not have this problem; there will always be someone willing to take Gold as payment. Besides, when governments have reserves, they hold gold, and that tells me everything I need to know about their fiat money. If governments don't have confidence in their own money as savings; why should I? ..or You? If we peg crypto to anything; peg it to something like Gold. Gold sucks as an investment but is a great reserve. Greetings!

I agree with you on this. I think that a peg right now would be way to disruptive and stunt the growth the the platform is experiencing. Hopefully, when they do do this, it will be at the best possible time to stabilize growth and keep it at a constant.

A lot of the witnesses are trying to inflate the supply of SBD by altering the the SBD/SP post rewards split. Even if you select 50/50 as your reward option, you are most likely receiving a 70/30 split due to the combined effort of several witnesses. This has probably helped lower the price to $6 from $15 a few weeks ago but we're not yet there. As long as SBD trades on external exchanges, we may experience SBD pumps.

I think it has more to do with the fact that the STEEM price went to $8 creating way more SBD's because the payouts went up a lot. Millions of new SBD's were created. This is why I believe that when STEEM goes up more in the future the SBD price will come down automatically and no need to force the peg right now.

Have you moved where you film? I miss the christmas tree :)

I changed the angle. The Christmas tree might be or not be still there :)

I think the high SBD price has done wonders for the community as a whole. It means that newbies who only earn a small amount on their posts are actually seeing a real return. I think they should abandon the peg and let the markets decide the price. As you say, investors on exchanges would be furious if something like that was done and the price then tanks which it would.

Lol, and you might see a million follow/unfollow notifications from me. I had a rubbish Internet connection and the screen was slow to load so I ended up pressing all the wrong bits to see this post!!

I think the high SBD price has done wonders for the community as a whole.

100% man!

Let market decides it future it will be cool to see where it will head towards but most likely it will go down

I fully agree with you.
If they interfere with the price of SBD, another worse problem would take place. Some devastative result could be brought in STEEMIT system

Don't touch it, leave it alone. Hard forking this for non current use cases, absurd!

Free Markets should rule. As long as you aren't seeing manipulation to keeping the price high it should be allowed to stay this way.

If a reverse conversion is implemented there should be plenty of warning and there should be a limit on how much can be converted per day. This would avoid a complete crash of the market.

On the flip side if the inverse conversion is allowed I can trade 4000 steem for 24000SBD internally and then buy steem on the open market to then convert again. It actually would allow for a short term massive increase in holdings for those that have liquid steem. It would take some time before the markets evened out and in the mean time massive profits could be made.

I think the best course of action is to do nothing. There will be ton of unintended consequences. Equilibrium will be found if they just leave it alone. I totally agree right now, we have momentum, don't f*#k it up

It will be a big mistake and dangerous if they implement it because all will go nuts here -me included. Let the free market reign and uphold our decentralised mindset. People are happy with the high cost of SBD because it makes members able to afford things -hope steemit inc will lsiten to the whole community and not just few because the success of this platorm depends on the community. Thanks and feel free to see my posts about steem and social media . Keep up the good work and thanks for sharing.

Abrupt changes are not a great idea anyways, I hope they won't screw up this growth period with such changes.

the reason for pegging SBD to USD isn't that good of reason, we can always show the USD equivalent on the side using some browser extension.
why should we let any other currency drag the value of SBD or steem down when it loses value?

nice post friend and i agree with your thoughts the peoples who are buying sbd now at exchanges i think won't know that SBD is just an internal currency and steem is the main currency and i hope peoples will start knowing about this fact and then whole momentum will be shifted back to steem, so forcing SBD to peg price instantly is a bad decision and it produce bad impact on trader's and yes it is far better that SBD price come down more conventional way, thanks for sharing your nice thoughts with us, Stay blessed

I dont see any reasom to make SBD always worth 1 dollar of steem.

@exyle I just say let the price of SBD go to whatever level it wants to go to. A FREE MARKET is only FREE when there are no Controls.........

You are absolutely right that such binding will negatively affect the whole of our ecosystem and the blockchain as a whole. It's a very correct remark that this will create problems for traders on exchanges and they will not be able to maintain a normal course for the STEEM and SBD , hence the fall in trading volumes and loss of interest in our currency, which will mean a loss of interest in the Steemit and the development of the ecosystem forget it! Thank you Mark and keep us informed of what's happening!

I'm not really sure what you're arguing for... Are you saying it's good or bad that SBD is making us wealthier?

I wanted to say that traders must decide for themselves what the price will be in the market and the fact that the SBD is high, it gives development.

Exactly! Pegging it to a dollar is economic self-destruction and I feel threatened by these "witnesses" trying to destroy the price. I'm trading SBD myself. I am a crypto trader.

FREE MARKETS are what we want........LET SBD go to any price that way the Market stays FREE

Great stuff @exyle ! Isn't it beneficial for us all a higher sbd? I mean, we earn more for our posts at the end am I right?

A higher than $1 SBD defeats the purpose of the currency then.

The purpose? Is the purpose to be POORER than what's possible? Gotcha!

Is the purpose to be POORER than what's possible?

https://steem.io/SteemWhitePaper.pdf

As you said, @exyle, the high SBD is funding growth for developers and content creators. SBD is tradeable on the open market, and people are paying those prices. Enforcing the peg through some sort of witness or developer action is a completely wrongheaded move, and it's going to drive a lot of the people, especially content creators that are leaving the other social platforms, away from Steem.

SBD was designed to bring stability to the platform, and I think market prices do that. Yes, it's a little frustrating when I see exchange rates fluctuate, but that's normal, and that's why I don't like to focus on SBD-USD conversions. But, a higher SBD-USD ratio attracts users from more "rich" nations due to the higher cost of living in these places. Keeping SBD-USD artificially low is going to frustrate a ton of people, especially as STEEM-USD gains in value. The SBD would become practically worthless on the blockchain, and the system would only favor people with enough resources to purchase a ton of STEEM, or who were fortunate enough to be early adopters. And then we'd be back to square one again.

Also, the white paper says that the fundamental unit of value is STEEM and that everything on the blockchain derives its value from STEEM. Why we continue to focus on SBD-USD ratios doesn't make sense. We should be focusing on SBD-STEEM ratios.

The current price is simply a reflection of what the market believes SBD and STEEM is worth. To intervene and reprice either outside the markets would make Steem Inc no better than a central bank, enforcing its will on the market. Let the markets decide.

Agreed. I lost trust in Steem because some witnesses want this reverse conversion. They sound like the Fed, screwing people over

insightful @exyle

How about not pegging it to a dollar yet, but putting an upper limit relative of STEEM.
E.g We can say SBD cannot go higher than 1.5STEEM and every year the factor(1.5) reduces by a certain percentage until SBD is then stabilized before the reduction would stop.

I believe things like this would help soften the blow and make SBD still valuable compared to if there was suddenly an announcement that SBD would instantly be pegged to $1. Quite a lot of panic would devastate the whole market.

for now, I must confess part of me is enjoying the SBD rise, If it were up to me it would never be pegged. On the other hand a second half of me understands SBD was created for certain functions it may never fully realize unless its pegged.

Seems great, I can't imagine what pegging at a go would do to the market

I will do activities like you . Thanks for sharing this post...best of luck.^^

We can take inference from the currency has long term consequences eventually market moves to the equilibrium so better we don't interfere in working of free hand and let it find it's true value

I agree with you, if something like that was to happen it would cause complete panic on the exchanges. It would cause a mass sell off and would technically be "insider trading".

With crypto being so fragile, its important for us not to make sudden Extreme changes.

#My2Cents

great video,
everything will be all right,
your information is very helpful for us,
thanks for sharing

It seems like sbd could be the global currency?

I can somewhat agree actually.

I'm strictly for pegging SBD's value. It shouldn't go too far. But I agree that it can help the platform to grow.

Your theory on when to peg it is also reasonable.

My most important concern is that, whether we can convince the devs and witnesses to add this peg feature before SBD goes too far from the "peg value" again.

I am sitting back and watching it all and wondering what the long term results will be (5 years) and how this platform will be.
@exyle what are your thoughts for long term?

useful information, I will analyze how you work not to fail on this platform

thanks for explaining everything in a very simple way that we all can understand..thanks alot sir..i was actually wondering about the reasons for this..now i have an idea about it :)

thanks for sharing man! excited for the future!
steem ftw

interesting idea but this will happen slowly and it will be back down from the current price lets hope it stay there for a while

Not - Third option - 1 SBD to be minimum $1

I agree. While I think that it should be stable at 1$ in the future, right now it should stay the way it is for some time. The growth is amazing and we should'nt stunt it.

I for one am just starting out on Steemit and when I earn $1 I take great pride knowing that the post has earned around $6 USD. Should this drop to $1, most people would have their future incomes cut by a massive amount. Also the fact that it's so high ATM is something that really attracted me to the platform, if it was just $1 or less, seeing as most of my posts are making less than 10 cents it would of been harder to stick by. Alot of people are getting on this platform to replace their YouTube or other social media incomes too.

At now SBD is worth almost 7 and a half USD. We never thought it will go so high, but it goes and also the steem is going high.
and my word in this is that it will go higher and this.
Approx 100 Usd to be honest.

Interesting read. Thanks for taking the time to explain it out. Going to watch the vlog now too. Learning a lot from you so please keep it coming, buddy!

wow If it is implemented then it will be good for everyone thank you for sharing

Is it "good" to be seven times poorer? Nice logic there, pal ;)

I know it has been said before, but the truth is that Steemit is simply too complex in its current form to draw in an influx of “normals” that will become continual users. If this were to be implemented it seems to me that your suggestion of waiting until it is as close to “self-corrected” as possible is imperative. The last thing Steemit needs is to chase away a group of users that is almost, but not quite, committed by screwing them in the market.

Exactly! I see this as econimic self-destruction. They're literally arguing for the goal of destroying a market and making everybody in it six to seven times poorer. Absolutely crazy!

@exyle i am for everything that increases the value of SBD.It will attract investors of all types willing to invest their money,time,creation of quality contents,the reward pool which is ultimately what we all want in the process furthering the progress of the blockchain

It is very nice gan. I have sub your channel.

Good post @exyle
Like help me please @exyle

It is very beneficial for us to convert sbd to steem as steem price is lower than the price of sbd. So it is a highest time to power up once account, thanks for sharing such a valuable message to the people. Have a great day friend.

Great analysis and discussion. Thank you for sharing. But I am bit confused about the future of steem?

I am honestly still very new to this and don't know much about this cryptocurrency world.

So I'll just read this without giving any opinion.

And thanks for sharing this by the way @exyle

its good for content creators as you also said so i guess as this is a decentralized platform let it stay like this we have seen sbd below dollar and in cents too so its just a matter of time

The reverse order will be a nice idea but the current content reward mode has to also change from SBD to Steem. It will favour the powering up and discourage cashing out, since SBD rate to $1 USD would have reduced considerably. Thank @exyle for such a great insight.

I hope not as I am saving up for a house! :D

I say no until I have 100,000 SBD then they can show the real value 😁

With the USD hitting a 3 year low I don't know that it would be a good idea to implement the peg right now, especially if its on the start of its down trend. I think a wait and see approach might be better since everything is so new.

Amazing post..I like dtube channel..I appreciate your story writing..Thanks for sharing this post.best of luck.

I find such a decision to be a radical one. Some times radical decision even if done with good intentions end up becoming a disaster. It can totally collapse a system and may lead to erosion of faith. Those who have invested in it end up loosing and may never return back. With less reward small blogger's may even end up leaving the platform.

Hell no. The SBD price will balance itself out overtime.

High Steem dollar price helps newcomers to get good rewards even with just a few average upvotes. It's at least five times more than they could get before.

Fascinating convo... i'm holding some SBD currently seeing how high the price will go

Nice post.I respect you very much because you contribute to steemit.I will do activities like you.I would like to extend the steemit.@exyle

well everyone would be thinking it don't happen like that if it had to happen it would be very harsh

It is a very difficult decision and maybe a bit early for it. Somehow I feel that I support the stable pegged SBD :)

I couldn't agree less with you....

Coupled with the fact that any disruptive move right now can discourage a lot of people....

But in all, we are all hoping for the best...

Loading...

Izin Share.

This is really a nice information though. Would try to get some steem soon..

what a wonderful story.... i impressed to see it..
.i am so excited to see your next post....

Please upvote back my post and follow back me @hery0823

i resteemed your post and followed it

high sbd prices will let steemit grow more rapidly than we think of 2 million active accounts would be really quickly possible

@exyle,
To enforce this peg now would be a mistake. I would wait until STEEM price goes up and more SBD's are created automatically bringing down the price of SBD closer to the peg.

At the moment STEEM price is about to catch up! Therefore, it might not happen this time! PEG we can consider later or it will automatically happen as you said! My main concern is to see STEEM at 2 figures! Great article friend!

Cheers~

Honestly, I am very happy to read your article, you create an exciting content that can make me relax reading it, can you visit my blog ?? @umar97

if any one would do that they will only end up losing support i think this will not be a wise move to do at the moment as the supply is continuously increasing

This would not be a good time to enforce the peg. Given more time the Steem and SBD will level together. At the point the impact will not be felt much in the market.

Anyone evil enough to enforce such a thing is literally aiming to make everyone almost seven times poorer. Disgusting. SBD's price is a free market result and it's ONLY a good thing. Calling it anything other than that is pure insanity.

If this gets enforced, and SBD goes back to 1 USD in 3.5 days, many people will think Steem is a scam. I'm really thinking about powering down and calling it quits. There's money to be made elsewhere

One thing I would advise anyone now is to invest in Steem will the price is still affordable because Steem holds a lot of future promises

@exyle; its to technical and complex for me. But I trust in you and the @blockbrothers; so far you are good and right concerning STEEM / STEEMIT / BLOCKCHAIN. You did so much great work !! So I can only support you!

Very good 👍

Not great as you said the growth impact it will have and every scenario would be changed but in the meanwhile the aspect of steem would have worse time too

if we want growth i think this will go quite nicely other wise everything will be a mess up

i couldn't now not imagine it getting back to that price everything will be unrealistic now

Dtube was not buffering so I had to download this 406mb vid :). Nyway serious information shared. Your take on it was cool but I doubt whether witnesses will wait that long to see sbd fall close to 1 dollar and then implement. It will be no doubt a loss for content creators if its pegged now,

huge amount of money will take to take it down better market decide it with time

No sir... i never agree.... plz its going on long long years......

Makes perfect sense. I'm with ya!

I just wonder - why did the price go up in the first place? They forgot to 'peg' it or what? :)

There is a discussion going on at the moment whether the SBD (Steem blockchain dollar) should always be worth $1 worth of STEEM or not.

In my own opinion (since sbd is already in the open market), I think it'll be right to let the market decide the price of sbd.

I don't support pegging of sbd and I know a lot of persons won't support it.


The only thing I've come to notice is that whenever sbd grows more than steem, different posts are created by steemians (mostly whales with a large stack of steem and steem power) on why sbd should be pegged and how it is affecting steem.

Talk about being self centred


Edit: And oh! like I said, it's just my opinion 🙏

Yeah, he's literally arguing for the goal of making all Steemit users SEVEN TIMES poorer. Anyone in favor of that is crazy.

good post, do not forget to follow back thank you

Hoi daar weer!

Ik vind niet dat ze de prijs zouden moeten vastzetten van de Steem dollar het is mooi dat hij mee gaat met de andere alts. Als de Steem dollar nu wordt vast gezet op 1 dollar zou dat de groei ook niet ten goede komen.

Bedankt voor je blog!
RESTEEMED & UPVOTED
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Yes you are right

I wanted to buy more but the conversion rate was not a good deal.

Steem Dollars (SBD)
$6.85

Steem (STEEM)
$4.36 USD (7.03%)

"4000 SBD will turn into 1000 STEEM (at current prices) for example. And clearly, this is a very bad deal!"

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