The demand is huge
A recent high SBD price caused discussions and actions. Here, I looked at some facts and will suggest some advice to help SBD pegging as well as promote Steem.
Fact 1: Daily SBD volume is 1.7x than SBD market cap
As for now, 24h SBD volume is $2.6 million. Meanwhile SBD market cap is $1.5 million. This implies there are numerous demands for SBD, much more than supply. We are not sure why, but suspiciously being related the collapse Tether. Rising Steem price can be another reason. The important thing is that SBD is getting highlighted now.
Fact 2: Daily SBD volumn is 20x more than daily SBD creation
To peg the price, most simple solution is increasing supply. There are both good thing and bad thing. A bad thing is daily creation of SBD is much smaller than market volume. It is around $1,000/day, and if we recover a normal reward level it will be around $3,000, which is still 1/9 of market volume. However, the good thing is that the creation continues at least Steem price goes down (SBD printing is stopped if its market cap is over 5% of Steem).
Fact 3 :Some conversions still exist
This is very irrational thing but there were 1,748 SBD converted. This is bad for individuals since they missed market premium as well as SBD pegging since it decreases SBD supply while never decrease demand.
This is a chance
The high SBD price is not from Steem community. I think it is caused by external factors. Some may think this is a threat to SBD pegging, but I think this is a chance. A high SBD price cannot harm our community. Only SBD buyers will bear loss while active authors gain bonus.
The one thing we have to focus on is Steem price. If we support Steem price, Steem market cap will increase, and hence SBD creation also increases, and helps pegging more. However, if we fail to support Steem price, the situation will be a vicious circle.
Here are three advices to make the current condition into a chance.
Advice 1: Don't convert SBD
If you convert, you will get $1, but if you sell you will get over $1.3 now. This explains all.
Advice 2: Don't choose Power-up 100%
If you want power-up, there is better solution that benefits both you and all. Sell your SBD reward, buy STEEM, then power up. You will obtain 10~20% more SP, and STEEM price will go up.
Advice 3: Try to be market maker
We are not sure this premium continues forever. We also have experienced weak SBD price just 6 month ago, discussing high debt ratio, price feed discount, converting SBD, etc. If you are willing to do, why don't you try to help SBD pegging? You can sell your SBD now (over $1) and buy when the price is lower than $1 (say, $0.995). As we have more potential supply for the peg, SBD price becomes robust.
To accomplish this, community-level action is needed, especially authors who are producers of SBD. Change crisis to opportunity with the community!
One safer suggestion for SBD holders.
You can sell SBD at 1.x (e.g. $1.3). Then convert $1 to USD or fiat, and buy STEEM with the rest (e.g. $0.3).
For instance, if you sell 10,000 SBD, at $1.3 withdraw 10,000 USD and buy STEEM $3,000 amount.
In this way, you can keep your original money, get profit, and pump STEEM.