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RE: I submitted my first hardfork pull request to the Steem blockchain! (Updates to the SBD print rate.)
Pegs don't work, won't work, never work. I agree that trying to keep something's value locked in at a certain exchange rate is pointless and history tends to show that pegs are meant to be broken. The only reason why SBD was originally designed to be a dollar is because the makers of BTS/STEEM thought they could be the shiny new dollar-pegged coin on the market that would draw all the investors who wanted something that could hold its value. Obviously that hasn't panned out very well for BTS/bitCurrencies and SBD, and every coin designed with that in mind has had its peg broken, or had to take extremely shady measures to maintain the appearance of a stable peg.
No
SBD are not "pegged" to a dollar in a traditional sense. They are redeemable for one dollars worth of steem. You can't break that kind of peg, if steem goes down in value you just get more steem for each SBD and if it goes up you get less. Obviously holding SBD has more risk than just holding a dollar because there is a chance that no one will want the steem at any price. that is why the SBD pay a yield for holding them. SBDs are much more like a convertible bond then a dollar pegged crypto.
Yes, you can break the peg by making steem go to 0, which is a possibility. It went to near-zero and stayed around there for a good while actually. I'm holding SBD in case we get a huge break to the downside and get more than 1 steem per sbd again and feel like it would be disingenuous of me to invest in any other blockchain at this point with my steemit earnings.
No
no? does that mean you disagree? if so please explain.
That is not breaking the peg, that's breaking STEEM. the SBD would still give you $1 worth of steem which realistically i dont see ever going to zero. Sure it could go to near zero but someone some where will still give you something for it. even if it's 1 billionth of a cent then it just give you 1 trillion steem for it. But like i said the risk of it being worthless is why the SBD rewards you with a yield.