Use Case for SBD

in sbd •  2 years ago  (edited)

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I took a break from EOS testing to reflect on the SBD and Steem price differences. I've been hearing a lot of people bark about how inflated the SBD price is from what it should be. I'm going to dig a bit deeper but the one thing that I know is that the the market is always right. I've been seeing the bot market for SBD going up over the past few months which may be contributing to this phenomenon . There are many people using these bots to upvote their post. I wonder if this type of marketing was originally thought about in the design. If not, this could add a feature that decouples its price from $1. I can understand from a tax standpoint why someone would want to choose SBD instead of Steem for the bot function. Each time you move Steem though the bot you would be incurring a taxable event. Using SBD is more efficient for this process an preserves long-term cap gains for steem. I'm not a expert on this platform but wanted to share my ideas. Let me know your thoughts.

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Personally I just really wonder if this inflated SBD price will hold up. It scares me a little that its supposed to be pegged to a dollar. Right now I like SBD because they are worth more than the steems, but it scares me to hold them.

Agree. It is scary.

True,
Exactly

First of all I would like to appreciate you for your work on EOS. Secondly, can you please tell me that is taxation applicable on steem and Steem power and not SBD. Is that even possible ? I would really appreciate your help to clear my confusion. Thanks

I'm not a tax professional but from my understanding short-term gains occur when you hold an asset less than a year. Someone wanting to maximize their investment would not want to pay out large sums of money each year in tax. Moving steem to a bot in my mind is a taxable event. Instead they would use SBD to do the dirty work. Just my thoughts. Again, I'm not a tax professional.

But seems like you have quite some knowledge of taxation. And thank you sir

You got a 21.50% upvote from @upmewhale courtesy of @jjcali!

good idea!

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I don't think you are right about the tax angle. The taxation comes when the money comes out of steemit. What happens on the platform is not taxable.

I have read some posts about kr steemers holding sbd for investment purposes. That may have something to do with it as well.

I'm sure it is different in different areas. In the US you set a cost basis for your asset and then take a short/long term capital gain depending on when the asset is exchanged. I'm not sure how you would set your basis on a bot that could either return a positive or negative net SBD/Steem balance? SBD/Steem have distinct prices so they have to be kept separate. I'm not a professional in this space but these are the issues I'm up against. You always have to have a starting price and acquisition date for an asset.

thank you for the information. I really appreciate your work in EOS. Currently I like SBD because the price is more valuable than steems. if the price of SBD will survive. thanks