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RE: The benefits of inaction: a defense of a high SBD.

in #sbd7 years ago

No, your economics isn't lacking.I'm a PhD economist, and in light of Venezuela's announcement, I've been trying to figure out exactly how you could peg a crypto.

The only way that I can see is to would be to disallow trading on external markets. In other words, Steem is traded on exchanges, while SBD can be sold only on steemit for exactly $1. (And the conversion between steem and SBD also only occurs only on steemit).

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You can check my wallet it you like, but you might discover that there are outlets for the SBD (and STEEM) tokens elsewhere. Try Poloniex if you dare, but I happen to have just tried out Bittrex. It's a bit hard to get setup, but I am already getting fiat US Dollars into my bank account from a few SBD coins at around $11 USD per SBD. Learn how the exchanges work and you can make real money and profits this way.

Exactly. And as long as it is true that you can convert SBD in an actual market, there is no way to control SBD prices to make sure it adheres to a peg. (And I 100% agree with your Poloniex evaluation, it's down there with Kraken. I don't understand why they have so much market share given all their glitches. But that's a topic for another day).

Woot. You'll have to excuse me while I rub someone's smug little face in this comment.

thanks for this :)

Wow, I never expected an economist to think in line with me on economics. Today was a good day. X-D

while SBD can be sold only on steemit for exactly $1.

SBD can be traded for BTC on Polo 🤔 ....?

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If you read the first sentence of the paragraph and last sentence of the paragraph as well:

"The only way that I can see [a way to peg SBD] would be to disallow trading on external markets. In other words, Steem is traded on exchanges, while SBD can be sold only on steemit for exactly $1. (And the conversion between steem and SBD also only occurs only on steemit)."

The fact that SBD is trading on other exchanges, like Poloniex, is why its price cannot be fixed at $1.

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