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RE: Difference Between STEEM's Price and SBD's Price Is Growing! What Can We Expect?

in #steem • 6 years ago

Just to clarify, increasing supply of a coin does not make the price of it go up, its actually the opposite, its total wrong for you to suggest an experiment that increase Steem circulating supply increases the price.... Draw you graph again, examine the demand vs supply, you would realize where there is demand and decrease supply, that when prices go up not an experiment of increasing supply... thats almost like pontificating quantitative easing and suggesting that it is a good thing...

6 years ago in #steem by
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     6 years ago 

    Thanks @daudimitch for your comment. Well I am aware of this simple fact that scarcity and demand increases the price. That's truer and correct than anything else. I never mentioned anywhere that the experiment is increasing the supply of STEEM and thus increasing the price. And I apologize if it is giving this impression to the reader. The experiment is designated to buy STEEM for all the rewards they get and burn them. Now if you read about the experiment then you will get to know how it is being done. It seems not only logical to me but very viable. Check out this excerpt from their status update:

    Finally this has helped 'drain the swamp' by directing rewards away from the vote-buying, bid bots, circle jerks, and other wasteful nonsense that is increasingly beginning to dominate the platform, and instead toward goals which are clearly of benefit to all stakeholders and indeed the entire platform: Designated buying and burning to increase the price of STEEM; increasing the STEEM market cap; harnessing voluntary vote support and market forces to improve the performance (even if only marginally so far) of the SBD peg, making it more useful and reducing the imbalances (such as negligible curation rewards) caused by overvalued SBD; and finally helping to stop spammers and similar forms of clear abuse.

    As a reminder, once SBD declines back to $1 or below, the STEEM received by @burnpost (including all post rewards which have so far been powered up) will be powered down and/or burned by sending to @null. None of the coins received by @burnpost will ever be sold or otherwise distributed. They are irrevocably designated for burning.

    This will not happen overnight and it depends on so many factors. Obviously it's an initiative that cannot affect price manipulation from other sources. So we still can see the downward trend for STEEM or an upward trend for SBD or both.

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