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RE: The Value of stable SBDs to me
Some people want a pegged SBD and I hate that idea as I'm a free market fan. So allow the markets to decide values of SBD and steem.
Personally I bought SBD when values were running 1.4 SBD to 1 Steem and now it's at 0.9 steem to a SBD (give or take) and been converting some of it because it's a great bonus on the money invested. But at the same time I am having a hard time converting it all as I really feel that SBD will rise faster then steem.
See without printing SBD right now any jump in demand will be met with a lack of supply. Feel that there will be drastic jump in price and once more is printed the price will settle back down much like the spike that happened at the end of last year/early this year. History is a great teacher.
Sbd should never be above $1 and if so you should never buy it as it will come down to $1.
By design it is worth $1, never more.
By design it's never worth less then $1 and there are protections against that. It can rise freely and due to the limited supply is very easy for pump and dump plays which makes buying worthwhile. Don't care what the original design was, SBD moves along with Steem and the price ration between the two can be a great investment play.
When the ratio for SBD to steem was high it was completely worth buying IMO as that money would have either bought steem or SBD at that moment as I wanted to add to my steem holdings. It was around 1.4 SBD per steem at the time. Now it's flip flopped and is 0.9 steem per SBD. So by playing the ratio between the two the 400 SBD would have been about 280 steem. Today I can convert it to 440 Steem. Net gain is 160 extra SP by playing the ratio.
I don't see how this is related to free market principles. We build cryptographic systems and then let the market decide. But we can try to build stabkecoins or whatever else we want if math allows it
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I don't see the peg as a free market issue. A pegged SBD is product created by the creators of Steem. It's up to you to use it or not. In my opinion, there is no need for two non-pegged native cryptos on Steem.
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By having two free moving currencies there are different plays at different times which makes thing much more interesting on the investment side.
The IRS considers any swap between two coins a tax event. When liquid rewards are paid in both SBD and STEEM it makes it hard to avoid making swaps. The IRS does not allow any losses to be deduced from the wins. Steem is already quite complicated. The downside peg of SBD is the only reason it's worth keeping around in the first place.