As Steem Dollars (SBD) Drop Towards the $1.00 "Peg" — Will They STOP There?
Much has been written — and debated — about the price of "Steem Backed Dollars" (SBD) since this token originally started wandering "off course" in November of 2017.
Prior to that date, it was pretty much understood by everyone that one SBD was more or less equal to one USD — with minor variations.
But then, starting on November 21st, 2017 "something" happened and it was pretty much "off to the races" for SBD. SBD had been trading around $0.98 for a while... and then it was suddenly $1.80. And then it went over $3.00 for a while... Then it spiked all the way to $14.43 before slowly falling back.
As I write these words, SBD has retreated to $1.11 on the Bittrex exchange.
Throughout all these fluctuations, the "broken peg" ("Peg" meaning 1.00 SBD = 1.00 USD) has been debated extensively.
Now it looks like we're just a whisker from that "peg" becoming UN-broken, once again.
The question that now comes to MY mind — against the broader backdrop of the entire crypto market slowly sliding downhill — is whether SBD is going to have a "hard landing" once we get to $1.00? Is the mechanism originally created to keep USD/SBD parity going to kick in and maintain the alleged "peg?" Or are we going to end up with 50c SBD, in fairly short order?
I know a lot of SBD's were "printed" in an attempt to bring the price down. As I recall, there were about 4-5 million in circulation in November 2017; there have since been MANY more. Will the excess now be "burned" to help maintain price stability?
Why do I care? Well, a long time ago, I had hoped to incorporate selling on behalf of a couple of my businesses through Steemit... but that became "NOT-feasible" due to a wildly fluctuating currency. So now I'm curious about what we can look forward to.
What do YOU think? Will SBD stabilize at $1.00 again? Will it keep going down? If you are "in the know," do you think the stabilizing mechanism will work? Leave a comment — share your opinion!
20180622 — 12:37
Steepshot
The SBD price went off the reservation due to outside manipulation.
Why would that effect the price of SBD below $1.00?
none that I can see..so I image it will stop falling once it reaches $1.00.
Another question is what will happen to the price of steem?
If I recall at one time it was $0.08 and SBD was $1.00
Yeah, I remember $0.07 and $0.08 Steem. I remember on a really good post you could pick up almost 100 SP, and pretty much all the remainder of the reward was paid out as Steem, not SBD.
Maybe that's what will happen, if things keep heading south. We'll get more and more Steem, fewer SBD.
I think SBD and Steem and both following the market for the most part. When the market pumps so will SBD.
The burnaccount will begin to power down, and sell Steem while burning SBDs. Reducing the Supply and when the Market pumps again, SBDs will pump with it.
:) I can't prove it, just my thoughts.
Yeah, that seems to make sense. I'm guessing that if things keep heading south, we'll go back towards where we were in mid-year, last year... almost all rewards paid in Steem and SP, almost no SBD. We're already on the way there...
I don't actually know, of course, @denmarkguy. But I woul b very surprised if it stablised if all the other currencies are still all over the place. Why would SBD be any different?
Fiddling about with it was a never a good idea in my opinion. it just like any other currency and therefore can't be controlled. 😂
But we shall see soon enough I suppose.
As I understand it, SBD isn't even a "real" currency. Steem is the currency; SBD was just supposed to serve as a kind of internal token for exchanging value. But since it trades on external exchanges... often by people who are no part of Steemit... I just don't see how any attempts to "control" the price would amount to anything.
Indeed, we will see.
Well it seems that people who were fiddling in one direction are now fiddling in another @denmarkguy. 😊
As the Borg would say "resistance is futile" 😂
I think SBD is going to head below a dollar and Steem is going to head to a dollar. That's unfortunate, but it doesn't seem like the cryptocurrency market is on the rebound yet. It many never rebound.... we don't know.
If there was huge rebound though I definitely believe that SBD would Skyrocket above steam again. That's because more users would come to the platform and those users would want to buy a SBD in order to power the Bots.
I think the markets in general are trying to make a bottom... we may have to get to where the price of BTC comes close to the COST of mining BTC before there's a reversal.
The idea of SBD being "pegged" to USD strikes me as having some problems as long as it is traded openly on exchanges. It may be the "liquid currency of Steemit," but to a trader it's just another asset for investment.
It's already approaching to 1.0. The way it's going there is a chance it will go down with less than 1.0. Let's hope for the best @denmarkguy
I'm just not too sure... some of the witnesses insist there is a "mechanism" to keep SBD around 1.00 USD, but it doesn't seem all that effective.
I think the mechanisms will work.
I am seeing it going below than $1! On the other side I am hopeful it will rise again. Though I don't know when will it happen!!
I think SBD will go lower than a dollar. I think as there is more talk about this market correction helping to stabilize SBD to intended value, people are going to sell. I don't know how low it will go.
It would be great if there was some sort of stabilizing mechanism that kicked in to keep SBD pegged to the $1 USD. I know this will upset a number of people, who have set their sights on SBD going back up. But, it would offer long term stability for the platform.
I don't know how you address that their will always be speculators who can drive the price back up.
This is just my gut feeling on the matter and not intended to be advice.
Yeah well it's a little confusing for me. I remember when I joined in December it was supposed to be pegged at $1.
I suppose that would probably be the best way to handle it. Of course I guess if 1 SBD goes to a high dollar amount it would be good for our Blogging Rewards ??
I have no idea :) That's why I read posts like this and all of the comments too! Thanks @denmarkguy :)