I am still pretty new to steem / steemit so I need the price to stay low so that I have time to catch up :p Still have a lot to learn as well so I have a few questions that are probably already answered somewhere.

Long term I think steem will be a lot more than $3, but how exactly can a "Steem Backed Dollar" be worth more than $1 if my wallet says that's what it's supposed to be? At first glance it appears to be designed to stay at a fixed rate of $1 USD to 1 SBD. So how exactly is an SBD going up?

I did read up on how SBD works and exactly what it is, and I want to assume that the system will dilute the SBD pool by adding more, or as users "hold" their SBD earnings, thus bringing the value of an SBD back down to $1. I'd like some clarification on this from someone a little bit more versed on the topic. When/how does it balance itself out? Perhaps I have this all wrong. Look forward to the answer!