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RE: Debating Steem Backed Dollars - Come On Baby Let Me Know Should I Stay Or Should I Go

in #sbd8 years ago

You do make some very good points and to be clear,

I like SBD just the way it is and I'm for it

I'm just looking at all sides of the question from as many perspectives as possible. I know you like SBD a lot and think that's the main reason people join Steemit, but it wasn't the reason why I joined.

If SBDs were eliminated, you eliminate the advantage that STEEM has over other cryptos and you eliminate the single largest reason for merchants to join the STEEM ecosystem.

That may be a bit of an exaggeration and there really are platforms that work right alongside existing POS systems where a merchant wouldn't have to change anything to accept crypto, so yes, it is true. Business owners don't care about crypto, they care about more customers and sales. Explaining crypto to them is not as necessary as you think.

In any case, I think it would be premature to make any change like that so soon after the recent fork and as I mentioned in this post , I'm not 100% sure I understand all the implications it would have on the system as a whole. The whole reason I wrote this post was to learn more about how people feel about it and to share my thoughts. From where I stand and how I use the platform, nothing would really change that much.

I do agree with you on the points you make in your post about not always tinkering with the system and the effect this has on the perception of Steemit, but it is an experiment in beta and tinkering it is to be expected. This is just an idea we're talking about and no action needs to be taken right away as @ned pointed out.

If I want protection from volatility, I would have to sell. How this would affect the price of Steem if everyone had to sell (or power up) is something to consider as well and you make a good point for that.

The SBDs are pegged because the value is supposed to be fairly consistent so that they are not constantly sold or converted. The STEEM ecosystem would become its own marketplace - it would create its own economy that wouldn't require every user to cash out in order to protect their earnings or realize gains

This is very appealing, but from what I understand this SBD stability is paid for by having to constantly sell Steem, thereby undermining Steem price stability. While it's true the SBD are not constantly sold, the Steem to support it is. At least that's my understanding and again, I may be mistaken.

If this is a potential systematic problem as @ned mentioned, we need to talk about it before it becomes a problem. If it's not a problem, them why did he mention it?

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