Why is SBD resisting the BTC down pressure while STEEM is dropping heavily?

in sbd •  2 months ago

View the original post on Musing.io

SBD is not getting printed now because of a built-in safety net feature in the steem blockchain. So if the debt ratio (total SBD in existence /  total Steem market cap) goes above 2%  author rewards will paid only in Steem and Steem Power. We are currently past 5% debt ratio and that is why SBD is not getting printed any more. 

So that makes the availability of SBD limited, to help it resist the market movements. However, steem is getting traded in exchanges and is directly controlled by the price movement of the BTC market. So its getting affected. 

There is some important changes proposed for SBD in hard fork 20, by @timcliff. Feel free to go through more information on SBD and the proposed change in this post made by @timcliff

https://steemit.com/sbd/@timcliff/sbd-explained

Hope this answers to your question ? 



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All these mechanisms are a bit strange and confusing for the average user. Why can't we have just one token...?

Also, seeing that last year, there was a day when 1 SBD = 8 STEEM, I guess a lot of people, just like me, are sitting on a bunch of SDB instead of converting it, waiting for an opportunity like that to appear again.

I'd rather trade 100 SBD for 800 STEEM than 100 SBD for 120 STEEM. So, I keep waiting.

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I am not sure, if that would ever happen. But it can as well, as you never know. I encashed all my SBD.

Many user still holding heavy SBD in their wallet....for what?

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Is there a way, not to be affected by the btc price. Because when you go to coinmarketcap website, you see 99% of all crypto currencies and tokens going the same way, every day. It's like...there is not difference if you have one currency or another. It's too centralised to btc. Is that going to change in future? thoughts?

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