RE: The Things I am Afraid of with the Price Hike of SBD | An Important Topic to New Users
The re-evaluation of the Steem Dollar beyond one dollar in value is an odd phenomena that theoretically should not have occurred. The original design of the Steem system was that Steem would provide an outlet for volatility, whilst the Steem Dollar would be managed to provide a minimum value of one dollar. The original design assumed maintaining a floor value would be the problem, unexpectedly the problem as become one of maintaining the value downwards. In theory we should now flood the markets with Steem Dollars forcing the price downwards, but that would of course have negative consequences on holders and reflect badly on Steem and the Steem community. The most likely course of action will to be to let the market manage itself, and seek to maintain a floor of one dollar. In general it is easier to change the design of a cryptocurrency than to change an irrational market.
We shouldnt. Sbd at high price creates a big benefit to us users. Wouldnt you want your earnings to be up by 8x, Even though it was originally designed by that, it still depends on how the people manage its demand. Especially the kr community (which I think was the reason of the pump)
I agree with you @jassennessaj! :)