The Case for $100 SBD
Like most of you here I have been in awe of the rise of Steem Dollars. It was always portrayed as being peg to $1 dollar worth of Steem. But as I started to dig for information it seems that this has been in the works for a very long time.
So what happened?
As crypto markets are becoming more mainstream veteran traders have been looking for coins that will give them 10x gains. The most obvious coins are the ones with low circulation supply. Anything under 10 million has popped to unbelievable heights as BTC has risen.
Could this have been predicted?
Judging from the chart I believe so as someone or a group has been accumulating SBD for a while now.
If you notice from the chart there was a major spike around the April-May time frame that made SBD pop but then it came back down to the $1 mark.
Looking at this chart we might be in the second leg of the SBD bull run. The infamous golden cross is showing up on the daily chart. The golden cross is when the 50 day moving average crosses the 200 day moving average. Aside from chart divination a post from last year by @ned alluded to the vision of SBD.
The real money isn’t in blogging, content generation, or voting. The real money is found in bootstrapping a digital currency. A currency owned and operated in a decentralized way by ordinary people.
The key to bootstrapping a currency is having a community which is able and willing to use it. A blogging platform that makes it possible for everyone to earn their way in is just a trojan horse. It is a means of hiding the vegetables (honest money) in the food (fun content).
For the most part no one really understood why steemit had two currencies on the platform. The average user could not figure out what to do with SBD except buy more steem and send it to upvote bots. Now with the onset of Smart Media Tokens SBD will be used as the peg on internal markets in steemit platform.
Why the $100 prediction?
This is actually a conservative prediction based on other popular coins in the cryptocurrency market. As I said before traders are looking for coins with low circulation coins to HODL!! Let's take a look at some comparables.
All of these coins are above $100 USD except for BlockNet and Zcoin. If anything SBD should be at least $50. Right now the whole market is down so this might be a chance to get some clearance priced Steem Dollars. Keep in mind cryptocurrency is a very high risk market and can lose all or most of your investment. Only invest what you are willing to lose and do your own research and perform due diligence.
Do not buy SBD, buy Steem. SBD will go back to 1.5 to 1 US dollar in the middle to long term. Here is how the regulation works: https://steemit.com/steem/@sevenseals/why-the-steem-dollar-sbd-will-fall-back-to-1-us-dollar-the-self-regulation-of-the-sbd
I see what your saying. So given the current situation it could go back down but what I don't understand is the big buys that happened recently. Someone must either be just trying to pump or they know something is coming up with SMT.
Two possibilities: First, people buy, who have no idea about the matter. Second people buy because there are only 4 million SBD and want to pump and have no idea about the matter.
Thank you for the post @alao.
I still dont follow why you feel SBD should be price higher?
If my understanding is correct, it is a debt instrument. Now that isnt to say that a debt instrument cant trade at a higher value. However, it only is mean to redeem $1 worth of STEEM. That is its "face" value...
Or am I misunderstanding.
Right now you can only redeem if for Steem but when Smart Media Tokens get released and people start having ICO's on top of steemit then I see the price increasing. The same thing happened with Ethereum. Once the ICO's stated happening the price of ETH soared. Given the simplicity of SMT I for see a lot of crowd funding happening on steemit along with some other innovative tokens getting created and traded internally.
But would the price of SBD soar or would it be STEEM?
I agree with your premise that once SMTs start creating tokens, the activity, hence pricing around here will go up incredibly.
You are the first to point to SBD as the token to soar as opposed to STEEM so I am trying to follow your reasoning.
Well Steemir was forked from BitShares the decentralized exchange. I'm looking at it as Steem already has a utility and gets locked up. If SMT's are to be traded on the steemit blockchain they would need a pairing and I think SBD is a better candidate than Steem.
$100 per steem now that would be epic! I would have over 300k USD sitting in my account that would be nuts
I think once SMT gets released SBD will increase big time.
Note that I'm saying $100 for Steem Dollars not Steem. Steem would need to make it above $4 to get any new highs.
Man....if sbd went to 100..which my love and I were speaking about...that would be a day for miles of smiles ..fingers crossed for a rise!
I think it could happen. Right now the whole market is down plus Poloniex finally allowed withdrawals so SBD lost a lot of value. I think that it could go higher given all of the buying in the past.
LOL one can only dream.
Dreams can become a reality!!!
Really u hit the point @alao my boss. Its just rising all time. For us nigerians sbd is worth of 15 dollar per sbd ,worthing about 5320 naira per sbd, because of our inflationary economic problem we are into now . but thank God for me being a steemian. I have to keep steeming for the great development. Thanks for the info sir.
As always, you provide the STEEM community with good info....
think wisely before make investment, because our crypto are more precious!
I agree it's highly volitilie right now.
Great post about the new situation of the dollar against the new cryptocurrency..thanks for the share
it's really informative post. this post may help all others who don't know much about crypto, steem. thanks for this post.
merry christmas in advance.