The Buying Side of Steem Dollars on July 4th? How do we clear some of our Steem Dollars?
I am sure I am not alone who can't wait for July 4th to do a happy dance. I fully intend to vest more into the platform and start a legitimate business on Steemit...But at the moment where a whole $1M worth of a new currency is released without many people on the buying side...what can we expect to happen?
Would there be a way to go Steem Dollars to bitcoin directly? or will we have to clear from on the STEEM market? Or will we have people will only be able to sell significantly under a dollar? I am just curious about how you see this event play out and what you think will happen to the price of STEEM.
I want to work with exchanges to make BTc:sbd available. Soon the internal market will be the most liquid, lowest cost, fastest price discovery available.
Sbd will give traders on bittrex a stable coin to trade against. You can easily go from BTc to sbd to steem.
Getting liquidity for sbd on exchanged should be easier than getting it for steem.
Selling Steem Dollars for Steem is, in effect, buying Steem. So the first effect is to drive up the price of Steem. If those Steem are dumped for BTC then that will drive the price back down, with the net effect on the price of Steem being quite small. There may still of course be short term volatility, and I'd even consider this somewhat likely. Should be interesting.
If the market is deeper and the peg tigher on the internal market than in the STEEM:BTC market, the net effect of cashing out will be negative for STEEM, wouldn't it. And the opposite too.
Well if nobody wants SD and nobody wants Steem then clearly they are both crashing, but the effect you describe is self-correcting. When the Steem/BTC rate drops then SD sellers will demand even more Steem.
Lets hope people don't get desperate and try to sell their SBD to STEEM to BTC. That's exactly why we have SBD so everyone can relax and stay within the ecosystem. We should try to make sure everyone is aware of this, and that we maximize our personal and collective benefit by holding or spending within the system.
I would love to be able to buy t-shirt and other steem gear like there was for bitshares. Someone may be able to make a few dollars by offering products for SBD on that day.
what would be ideal for you? SBD > USD liquidity market? Why would people feel the need to buy SBD directly?
That's what killed bts, the btc to bitusd market they setup on bter. There was no reason to buy bts anymore...
That's exactly what I was wondering about when I asked: "Is there any actual correlation between BTS valuation and creating bitAssets?". I was suspecting that the BTS valuation didn't rise as expected when creating and trading bitAssets.
Do you think Steem will have this problem too?
Sorry, I don't quite understand. I think you get rewarded in SBD, so there's no need to buy. Ideal for me as a future SBD holder would be to pay for services or goods directly with SBD. As for people interested in capital gains they will most likely be interested in buying STEEM or SP with USD or SBD depending on what you have.
My main point in my previous reply was that I hope people don't realize/liquidate/sell their STEEM/SBD unless necessary because it will put downwards pressure on STEEM. If the reason to selling is that you don't like risk or volatility, why not just hold SBD.
some people may want to cashout some of it and that's the point. If there are no buyers for those SBD, how are they going to liquidate? (For me, part of it would be to invest on a business built on steemit for example.)
Can you try to pay with SBD? That would reduce your need to liquidate, and it would also support the value of your SP.
@ash (can't reply because we are at max reply depth): Yes there will be an interest rate. It think it is planned to start at 10% and adjust as needed.
There will definitely be buyers, unless the system collapses altogether. The blockchain will exchange your SD to Steem at a rate based on the price feed. That takes 7 days so the spot price may be lower, but if so then people can make an expected profit buying your SD now and waiting the 7 days, meaning the spot price should not be much lower.
Hey, now I understand your point :-). You are wondering if there could be a direct market for SBD:BTC or SBD:USD, instead of the two phases of SBD->STEEM and STEEM->BTC; and where thy buying side would come from. I guess that would be a problem, because as you said, who would need to buy SBD. I think it's better to have people buy STEEM, as a SBD:BTC market could be bad as @bbqbear pointed out. Even better would be if people tried not to cash out, but try to make others accept SBD for payments. SBD is as good as the cashed-out-cash, isn't it :-)
I would need some cash to pay for employees who are most likely not going to accept SBD...since they are going to be freelancers who need to pay the rent. That's the #1 reason why I would need to liquidate some of it. But unless the buying side is strong enough, it really will hurt STEEM if too many of us cash out :-/
https://steemit.com/steem/@tuck-fheman/lets-have-a-steem-buying-bonanza-on-july-3rd-4th
Gosh if $20k raised the market cap by $10M...that could definitely cause some major rocus.
What if we buy more steempower on that day...does that raise the market cap too or only STEEM does?
Steem Power and liquid Steem are both counted toward the reported market cap.
I am actually quite concerned about a crash in Steem prices as everyone tries to cash out on that day. Since the money supply of liquid Steem is extremely low as it is, cashing out would raise the money supply multiple folds and crash the prices.
I think the system would make more sense if liquid Steem supply is much higher. I do like the vesting system for making sure that people are committed to the Steem network, but I'm quite concerned about the pump and dump abuse. It seems like it would be extremely difficult for the average user to cash out at a fair price. The SMD proposal seems like it could mitigate some of the problems, but I don't fully understand it.
Even if SMD could theoretically work, the average user is not going to be able to understand the system well enough to fully take advantage of it. You would still have big player market makers trading both SMD and Steem.
Another issue is that Steem does not function as a medium for exchange, so it doesn't really behave as a typical currency. It is more like a stock. Bitcoin is a currency because people actually buy a bunch of other things with it, but the purpose of Steem is to either vest in the website or to cash out. This is a big problem with the altcoin space in general. Nobody focuses on the transactional value of the currency. I want to go to a bar where the beer is priced in bitcoin or an altcoin, not in fiat.
don't forget that some of us will...
in all cases STEEM will have an increase of it's value "long term" BUT with great fluctuations cause of panic buys and sells the first days after 4 July...
This would be hugely positive for the Steem price! Everyone who trades SD for Steem and then powers up is buying Steem with no offsetting Steem sell trade.
People who are worried about a crash due to cashing out should also consider more carefully the possibility for a massive increase if people who have just seen firsthand the potential for Steem to pay rewards on the basis of their Steem Power want to use those rewards to power up.
I also expect there will be a fair amount of reporting about the large (probably $1 million+) reward being paid out, and this will bring even more users and buyers.
There are things that concern me (longer term) about the economics of Steem but July 4 is definitely not one of them.
I do expect some potentially large short term volatility around July 4 but it won't necessarily be in the downward direction!
I had $15 Steem Dollars and I transferred them to Steem... I haven't seen anything since...this was about 12 days ago... it's like the Steem Dollars just disappeared. Anyone know what happened?
Fine thread. I was about to post a similair thread. Buy low, sell high, it seems so simple but most investors still don't seem to get it :-) Personally I always use: https://www.coincheckup.com This site did all the research for you. It's truly amazing.