RE: [Steem talk] What it takes
It's difficult for me to see the importance you speak of, probably because I do not have a good enough conceptual understanding. I don't try to pretend to know shit that I don't know.
This is what I understand about SBD's. It's supposed to be a pegged "SMT" of sorts right? Not sure if it's actually considered one or not..
The peg has not held from what I've seen. We've seen it over a dollar, and under a dollar plenty of times. Are the mechanics even in place to make it pegged? And if not, why would it be considered pegged?
The last point, is most of the Steemian's I know around the blockchain, sell their SBD immediately for Steem. So, this is good for obtaining more Steem, but what is it really doing for Steem? Perhaps, I just don't get it , but I am eager to understand it better.
OK put it this way. The feds said they have x amount of gold in the reserves. They print x amount of paper money for you guys to spend and burn. What actually affect the value of the paper money is how you spend it and how you guys burn it. What the feds care now, is how they control the flow of the printed money.
Gold = steem
USD = SBD
Now imagine this, if California decided they need to go economically independent and start to print their California dollar called CD. Base in what they print their dollars?
California = dApp
California dollar = SMT
Technically, SBD is already an SMT. They are here to regulate the usage of Steem.
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This is a really good analogy. This definitely puts it in better context for me. Thanks bro.