Is SBD actually more valuable than Steem?
Earlier today I was pondering about the relationship between Steem and SBD, and decided to make this post to expand on previously made comments. After doing some analysis, I came to an unexpected conclusion.
Everything is relative in the crypto world, as it is with everything in the rest of the universe. Below are some features of SBD when compared to Steem:
SBD has a MUCH smaller supply than Steem (8,052,493 SBD vs 265,370,561 STEEM)
SBD is traded on many exchanges just like Steem
SBD has the same zero fee and instant transfer capability as Steem
All bots and future SMTs accept/require SBD
And an additional VERY VALUABLE advantage that SBD has over Steem is that it has a price floor at $1 USD in Steem tokens
Some may say that Steem is better than SBD because it can be converted to SP for voting, but that is false since you can buy SP with any crypto, not just Steem. Hence SBD can also be converted into SP. When that happens, SBD (or any other crypto) must be sold to buy Steem, which is then powered up into SP.
Taking all these points into consideration, even if there were just as many SBD as there are Steem in circulation, the logical market price of SBD will still be higher than Steem, hence this is what we started seeing as of recently.
I think that in the future, central banks will create e-currencies that will be TRULY pegged to the respective local central bank controlled currencies, and those e-currencies with the additional KYC/AML parameters will be traded on the local crypto markets in each country. Just my opinion based on a plausible logical sequence of events/developments.
Let us know what you think in the comments below.
DISCLAIMER
This is just an opinion and not any investing or trading advice. Always do your own research before making any financial decisions.
We now offer a great #RESTEEM service for your Steemit posts to over 120,000 of our followers on our Steemit/Facebook/Twitter/Tumblr/Pinterest accounts! Only 1 SBD or STEEM per #RESTEEM! This service is great for new users and minnows/dolphins looking to increase their reach, get more Steemit Upvotes and get new Steemit Followers! Try it today!
Send 1 SBD or STEEM to @ebargains and mention your Steemit blog post URL in the message. We will resteem and share your content within the hour! Only good quality content will be resteemed/shared. (NO spam, porn, drugs, hateful, inappropriate, etc. content please).
We will also upvote your post at our discretion IF we deem it to be a well written and an acceptable content quality post.
We are also one of the curation trail leaders on Steemit! Add us on http://www.Steemvoter.com.
Well done .. as you said it relative
I think that one has to work hard in any direction he sees fit him
Thanks for sharing
SBD also doesn't have a consistent production cycle. Thus, as Steem grows and the price of SBD stays above $1, we should expect the number of SBDs in circulation to eventually surpass that of Steem itself. Right now, 4.5 SBDs are created for every Steem (granted you select the 50/50 option).
SBDs simply act as IOUs for $1 worth of Steem.
Sure you can trade them to other people for more than that, but that production schedule makes the asset not worth holding while it remains above $1. Because if Steem skyrockets, the SBD crash should follow soon after.
So true
Also, even if the supply of Steem is equal to the supply of SBD, the fact that SBD has all the features of Steem PLUS a price floor at $1 USD (which Steem does NOT have) actually warrants paying a price premium for SBD.
I do understand that for every Steem created there are 4.5 SBD being created, but until the supply of SBD surpasses that of Steem, SBD does look to be more valuable than Steem.
How to know or convert sbd to esteem? Thanyou.
You can convert Steem to SBD and vice versa on the internal market on the steemit.com platform. Do keep in mind that the Steem Whitepaper does state that the intention of @ned and @dan were to have SBD be a peg to the USD, so they may consider enforcing that peg in some way later on.
Give them a small gift from steemians as an entry point, let them play out with steemit. What is better than promoting it to fund investors would be to promote steemit at, image makers and personal managers. People that promote other people as a job, those will appreciate our ecosystem way more than any others. It is their game in a new language, if that makes sense. Smart will see the possibilities. Great things are coming @ebargains the wise ones will stick around for the next 3 years cause we will lead the changes in the industry, in a means to stay relevant a percentage that will only grow will join forces with us. We are a virus that will be of epidemic levels for the industry.
right (Y)
Thankyou for the info. @ebargains . Hope to know more about steemit. :)
You may be right, but for now SBD is acting as a leading indicator for the price of Steem (Steem tends to rise in price after a rise in the price of SBD).
Maybe you are right but they can't go up in price separated, they will go up together.
You have forgotten that SBD has a high inflation as long as the price is above $1. Currently the inflation rate is 9% per week or 500% per year. This regulation mechanism results in a SBD price of $1 in the mid to long term.
This chart you'll also find in my weekly steemit statistics:
https://steemit.com/steem/@sevenseals/steem-statistic-charts-week-05-new-activity-chart-and-country-statistic-added
very useful and informative post
Great post. You made some very good points. I was considering buying steem with my sbd as they start to be worth more, but I might just hold them after reading this article.
We must also consider that steem power permits one to accumulate more sbd... so over the long run you may make more sbd by buying more steem power.
Thankyou - I found this an important read and one I have signposted people towards in my blog post today - where I am looking at the SBD to STEEM RATIO. I will be a new follower from today. Thanks
Thank you :)
I still would like to see a new definition of SBD. Since STEEM is much more than Steemit, I see SBD as just the first SMT on the STEEM blockchain. SBD is the internal currency of Steemit, while STEEM reflects the whole blockchain and all apps on it (incl. all SMT that are about to come)
Very interesting point of view @atmosblack.