Could Steem Dollar be used as a tool to protect a traders/ speculator gains in this BTC bull run.... Thoughts and Perspective
This piece is heavily opinionated base on observation and market dynamics. Over the last couple weeks I have been keeping a close eye on Steem Dollars and BTC trying to find correlation and association. I haven't been able to pinpoint any specifics but I believe I can now draw an opinion base on market observation and dynamics. Please take note of the graphs and its unique association, I tried not to let my biases and tendencies lead to preconceived conclusion but I hope we all can see the picture and our conclusion may be alike
Market Observation and Dynamics (Graph)
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Market Observation and Dynamics (Price)
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Market Dynamics
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Perspective and Analysis
While some may argue that this maybe market coincidence, I believe the graphs and market dynamics have unique merits that should be dissected. Steem Dollars is pegged base cryptocurrency that is used to maintain value in a volatile market, ups and down. Primarily it is used in the Steem blockchain economy that is in theory pegged to 1USD, witnesses used APR as a tool of maintaining that pegged ratio. As shown in the table above it is traded on several exchange including Bittrex, Poloniex and HitBTC among others.
From my observation and as can be seen from the graph, SBD seems to trace BTC. Thus, I am speculating that traders/ speculators are using SBD as a tool to lock in gains due to its unique characteristics. I am also speculating that Steem Dollars could be a beneficiary of the Tether fallout as traders/ speculators place confidence in Steem Dollars to maintain value. Therefore, I believe that Steem Dollars could in theory be above 1USD as its demand on the market continue to outweigh its supply.
I am speculating that holders of Steem Dollars can now look at the volumes of BTC on exchanges like Bittrex, Poloniex and HitBTC an get better USD value for their SBD as traders continue to use it as a tool to lock in BTC gains. If my observation has substance and traders continue to place confidence in SBD over other pegged base cryptocurrency like Tether, SBD holders may continue to gain value as SBD demand continues.
Sources
https://coinmarketcap.com/currencies/bitcoin/
https://coinmarketcap.com/currencies/steem-dollars/
SBD are so crazy I don't understand why that is sky rocketing and not steem
New traders look at Total Supply and when they see 263 Million STEEM and only 3 Million Steem Dollars they may be confusing that for something like Steem Power.
The demand for SBD is so great after the fall of confidence by traders to Tether that it doesn't go back into it's pegged price so this is not a pump but a genuine indication of a bull market and may well be a sign of tripling it's price from the current SBD price.
"You'll gonna get rich boys, you'll gonna get rich!"
@cryptopie probably Steemit can entertain having it pegged to Steem rather than USD, I believe it could add some stability to Steem itself and add more value to the ecosystem, the ratio would have to be dynamic but they could work with 3 to 1 or a 2 to 1, or let the market determine its value as the price of Steem rises over time
Woo you are going leaps and bound bro @daudimitch
Excellent post and great perspective buddy. Loved it.
Regards Nainaz
#thealliance
What are your opinions on selling your steem dollars for Steem? Thank you for the post it was interesting.
Steem is a better long term play and Steem in Steem power is powerful tool... I believe SBD would continue to track BTC as traders use it as a tool to lock in gains or speculate base on its low supply....
Steem at 260+ million active users is a trade-able asset in itself, so if you believe that Steem would continue to attract users and retrain users, its definitely a power move investing in it... In the interim, I am not to concern about the actual Steem price but rather its ability to attract and retain users, once it could maintain that investors would jump on board... SBD can also be used to help the price of Steem in the short-term to long term as it is a bridge like BTC...
Wow nice, thankyou!!!
I've been trading it in the market down in the 10 to 20 cents range. My account balance value was 300 - now it is 800 in a week or so. I say at least do some of it and then lease delegated sp so you can get more on your post payouts and curation. I have a post about it on my blog if you want to take a look. It's only gotten better since then.
Sounds like a good plan, I believe in the long run it also add more value to the Steem blockchain, more reasons to entice users and get more people on board
I hope so. The little minnows are struggling badly and we need more to succeed.
Korean exchange upbit is not even listed on coinmarketcap, while its daily trading volume is over 15 million of SBD already :)
https://upbit.com/exchange?code=CRIX.UPBIT.KRW-SBD
Thats some interesting stats there, I suspect the actual value would be much higher if its listed on more exchange.... In the short term it adds some excitement to the users holding it and in the long term its brings an extra value and diversity to the Steem blockchain.....Thanks for dropping by and sharing your comments
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