SteemDollars (SBD) going crazy on Bittrex currently, trading over 120% up, does anyone know why?
I just saw SBD on Bitrex growing at over 126% while Steem itself is dropping slightly at -14.2%.
Does anyone know why this is? I thought SBD was pegged roughly to a Dollar and that Steem was supposed to be the main trading currency.
Is this because of flexibility? (ie. SBD's are more fluid) or because of some kind of backlog in processing Bitcoin transactions?
If there is a bull rush on SteamDollars and their trading price goes through the roof then how does that potentially impact Steemit if SBD's become massively overvalued?
I'm finding this really weird because I just got my head around the differences between Steem, SteemPower and SBD and I understood it how it was explained by @andrarchy in his youtube videos.
But if SteemDollars becomes a popular speculative destination then can they trade up indefinitely and potentially even become the next Bitcoin. I don't understand how the mechanism to peg them at 1 USD works, it looks like the market will just take them wherever demand wants it to go.
Is this the beginning of some kind of crazy market rush or is it just a weird anomoly?
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It seems like things are going good. Whoever is exchanging to say ETH right now is doing good so far :)
Yeah, I'm sifting through all similar posts because I wanted to make a post like this too. I don't know what's going on either!
Yeah, I was going to post a similar thing, I've spent the afternoon walking around saying "its worth how much?" to myself. Just can't believe it, how cool is it wow?
I can now tell my friends who didn't sign up "I told you so" and "in your face".
Hopefully this might inspire some fomo and people will jump in and things could go ballistic?
If any part of the Steem chain gets a rush it has to be beneficial in terms of bringing in more speculators, demand is something any digital currency needs.
But if SBD's become overvalued in respect to their daily use inside of Steemit, I wonder if there isn't going to be a downside in how that rewards people for posting premium content. Worse case being if it triggers people powering down SteemPower to gain SBD.
Just trying to figure out why it's SBD that it's happening to and not Steem itself.
Takes 2 years to power down I think though. I'm guessing that is to prevent this ... which would be my concern in this situation too. I might be wrong but I thought when I decided to power up my steem to steem power I remember reading it was tied in for 2 years.
Yes thats true, I have been thinking about it a lot, its great for investment purposes and all that but 2 years, hypothetically if steem goes to the moon, then tanks a few weeks later, the crypto roller coaster could do that, steem gets a bad rep and your left out. I don't want to sound negative but its a possibility to consider. I would prefer 6 months or 1 year with the ability to choose how you want to invest. I guess Im in it for the long term now.
I'm in for the long haul so I don't mind the 2 year power down. It cost me nothing and I'm keen to support the platform long term. If it takes ages to power down it buffers the system against the roller coaster I suspect.
I think a good strategy Sally is to build up and keep a fairly high amount of StemDollars in addition to your SteemPower. I know SteemPower gives you influence and ups your voting power, but SteemDollars give you fluidity. And it's really fun to be able to do things with your money sometimes, even your crypto currency.
I'm not talking about a lot but having 10-20 SteemDollars always available isn't a huge target for a hacker but can be a significant value to move across to Bittrex when there's the next crazy pump.
It's all free money for me, so I'm happy to power it up :-)
@angusg Yeah its interesting I have no idea why its happening its opened my eyes a little and I'll be following the price of steem dollars as well from now on.
PS Guys I found this article that may answer some questions apparently it was listed on a Korean exchange.
https://steemit.com/steem/@drakos/what-to-do-with-the-sbd-pump-a-technical-chart-analysis
That's really interesting, it explains a lot.
I had 10 SBD so I moved it over to Bittex where is was 110 USD approx of value. I left it on SBD in Bittrex overnight then when it dropped price this morning I transferred it to a mix of XEM, LiteCoin and Bitcoin. It was about 127 USD a couple of hours ago then just dropped to 122 USD, so I made approximately 12 USD on top of the 110 USD the SBD was worth yesterday. Pretty interesting and fun to do.
I thought it was a good opportunity to learn how to use Bittrex and it's very simple to transfer SteemDollars to Bittrex with no fee for doing so, whereas Blocktrades will charge about 2.5 SteemDollars as a fee for converting SBD to Bitcoin.
If anyone wants to know how to do it the process is very straightforward. You register and verify an account on Bittrex (takes about an hour for the full verification) then Bittrex trades SteemDollars so you simply create an SBD Wallet and create a deposit request which gives you a wallet address to send the SBD to, then you go back to your wallet on Steemit and do an internal Steemit SteemDollar transfer to @bittrex and the memo is the depost request code from your Bittrex wallet and you enter the amount, confirm it and then when you go back to Bittrex it will appear in your Bittrex SBD wallet just moments later. It's a really fast transfer.
Being able to move SteemDollars into Bittrex easily opens up a lot of possibilities to trade those SBD, it also made SBD seem like more of a real commodity to me.
I've got to get in on that, when I first joined up I saw people using Bittrex to buy steem and wondered why, now I know. With all the Bitcoin fees lately it sounds like a good way to move things around thanks angusg, good little tutorial there!
Apart from anything its fun. My theory is that currency exchange in Crypto is a really good way to get to know new blockchain technologies. For example this week on Bittrex I discovered Einsteinium, HempCoin, Decentraland (which is like a blockchain open source 2nd Life), Monero, LiteCoin, New Economy Movement (which is a working and trading version of what EOS seems to want to be), and Next Coin. Currently I have a little bit of each plus still 2.5 SteemDollars, plus a tiny bit of Bitcoin.
I'm only playing with the original 110 USD that was created when I transferred my original SteemDollars and for me that's the way to do it, just play hard with 100 or so $ and to learn the system.
Of course there's also the waste of time factor, i.e. I would have made more doing a day's work, but it's a little bit of fun.
Thats awesome, yeah there are so many coins, Im really getting into it, researching and learning about it all, is fun.
Don't worry your not wasting your time, true if you could have made more money for a days work, but think of the education you are getting before this starts to go mainstream and people jump on board! So exciting!
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