RE: Why SBD is trading so high (and how you can help)
I sold what I had earlier today (only a few hundred). It gets really tricky when the internal market for STEEM gets so much lower than the price on the external market. In ways, it seems better to buy the low STEEM with SBD internally and then sell that STEEM on an exchange for a profit. The trick is $1 of STEEM internally isn't the same thing as $1 externally because those SBD are worth more than $1 when the price of STEEM is rising quickly.
I've been trying to figure this whole thing out for 9 months now, and I'm still confused by it. I'd love to have more people talking through the economics and how the various interest rates impact things. We're down to 1% interest now and that may go away also. Sometimes the market is just irrational (like we saw a few weeks ago). In those cases, I'm not sure how much it matters what adjustments we make to the interest rates because, as you said, supply can't be directly controlled. Also, even if adjustments are made, it takes time for markets to respond.
It's a tough thing to be the central bank of the Internet.
Yeah. The interest rate is particularly confusing because it's designed to incentivize people to hold SBD in an effort to make its price rise, but it's actually increasing the supply which should make the price go down.
To see whether it's better to sell SBD internally or externally, you just have to crunch the numbers every time. There aren't any hard-and-fast principles.
"I've been trying to figure this whole thing out for 9 months now, and I'm still confused by it." <--- You saying that made me feel better! I'm confused still too even after reading... I'm just sitting here like, so do I buy or nah?