I agree completely. At some point the supply of SBD is going to grow to the point where it has to collapse. Personally, I think those on the open market buying an asset that has a stated value of $1 for $5 is pretty foolish but then people do foolish stuff everyday.

When the peg broke, there were 3.5M SBD...I am not sure how many there are now but last I looked it was 6M or 7M. When does it get too much? 10M? 15M At some point people are going to dump it.

I hear many say that creating so many SBD is a problem since it is debt, a liability against the blockchain. The fortunate thing is that it is only $1 worth of debt. Plus, as the price of STEEM increases, the amount of that token it takes to retire the SBD is actually lessened.

To retire 8M SBD at $4 STEEM requires 2M STEEM...at $10 STEEM it only requires 800K STEEM.

As long as the price of STEEM is increasing, the debt is not a problem.