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RE: Ned on SBD: "Does the community want to continue to be paid out in Steem Dollars?"
I don't think you understand the point I am making. People will go where the money is whether the SD is there or not. For example I prefer Bitcoins to regular money because of the potential for it to grow in value.
SD let's people hold a cryptocurrency without any risk of loss of value - that means that there is no incentive for anyone to really buy Steem. That cuts demand which reduces price.
At what point do we say we have gone too low 1 cent, one tenth of a cent? It is not sustainable.
Simplicity for newbies is not good enough of an excuse to maintain it. If Steem goes down to virtually zero no newbies will be coming after it - nobody will want it.
As Ned says in the interview, the price is not what's important right now. What is important now is growth.
I understand perfectly that SBD is a token if debt. Technically though, the pound is a token of debt too. Yes, it will reduce demand for steem for those who are still adjusting to cryptocurrency. But for those who decide that cryptocurrency is a concept worth learning about and buying into, it is SBD that will ease them into it. Everybody else will gradually see value in Steem as SP and that will gradually increase demand.
I'm not worried about the price hitting 1c although I don't think that it will. There is enough passion for steem right here, we don't need to force noobs into it. They need to come to the realisations we did themselves.
You can't disentangle the two. The pound (even though it is doing badly now) has nowhere near the volatility of a cryptocurrency.
The lower the Steem value goes, the smaller the value of payouts will be. New people will be less attracted by that.
Further I don't think having a pegged note is any simpler than having a cryptocurrency on it's own. People can understand that different currencies have different values.
I really don't see any disadvantage to removing the Steem Dollar in that sense. People will go where the money is like I said before. Money is a great motivator to learn new things.
People will go where the money is -correct. So what does it matter if the payouts get low? I don't see any other social media platforms paying me a couple cents for a comment. We're safer to attract a userbase while the price is low, rather than when the price is unrealistically high, as people quickly get used to making that kind of money, and suddenly $40 a post isn't enough. This is a better price to grow at!
I think most people would go where they are getting $40 dollars versus 40 cents. Further at some point i.e. when your payouts become next to worthless you don't have any benefit left versus other websites that don't pay you.
We must also be wary that there are several alternatives and someone could easily spin off their own version of Steemit that gets this right.
I don't see the compelling reason to keep the SD on that basis.