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RE: What's Going To Happen With The Price Of SBD? (PS - Check Out @Haejin!)
I think it is a supply issue. SBDs are rare(<3MIL) and there are 250 million steem.
I think it is a supply issue. SBDs are rare(<3MIL) and there are 250 million steem.
Bingo. The tiny market cap is a critical factor. Most SBDs are eventually burned in one of several ways.
This is what I keep saying. SBD is only created by the content flowing though the blockchain. This means the content creator is the only person who can make it and it is the rarest currency. This is like a video game thing and I don't know why people can't see it. When the platform value and interest in it goes up, then the rarest currency should go up the most.
Interesting perspective....I wonder if it will prove to be true, of if this SBD price remains some sort of transient pump.
I vote for my idea! I got it from pokemon red. The coins you have to work for are the ones to keep. Don't put it all to currency you battle with.
Everyone else powers up and then no one has free cash to spend when needed.
In steemit - only some people can generate sbd - very few people.
Can you expand on this @lexiconical? I'm struggling to come to grips with the relationship between steem and SBD.
There are very few total SBD circulating, as many of them are destroyed eventually (via @null, promotion, Conversion option in wallet).
This keeps supply very low, as you can see on CoinMarketCap.
Cheers mate. I just read the white paper now to try and find out about the "debt" thing. I didn't realise they were a debt instrument.
Exactly. Think the witnesses should start working on more aggressive pegging strategies, maybe introduce a 100% SBD payout option and enable it whenever one SBD exceeds a value of something like1.5 USD. It really seems they are sleeping through this one at the moment. Pegging needs to start happening much more aggressively. The current pump clearly shows that. If SBD can't be made to handle silly pumps like this, how can we expect it to handle it if (when) the BTC bubble bursts and pulls other crypto currency down with it?
That's an interesting idea I haven't seen presented anywhere else.
What do you see as the primary benefit(s) of a more aggressive peg?
I think the main advantage of whatever measure could be devised to make SBD relatively stable in price would be the possibility to offer fixed price services of the not done in a jiffy type. For example, I'm in the market for a good editor who could help me turn my series of steemit fiction posts into something of high enough quality to self publish. If I had hired an editor when SBD was still round and about 1 USD , agreeing to pay 0.00018 SBD per word, I'dd be looking at a real sour deal if that editor delivers while SBD is stuck at over 10 SBD after a pump. The opposite would be true if BTC would tumble down to $3000, pulling SBD to maybe under $0.10 for a longer period of time. I think aggressive pegging could help attenuate these prolonged deviations from the peg and thus could open up an SBD based service economy that today seems to be inhibited by insufficient effacacy of the pegging mechanism.