RE: STEEM and SBD rocketing together? It's Impossible.
I've come across this post through reddit, and I have to say as someone who's recently been thinking about the Steemit structure and been engaged in discussions of how SBD "should" be returned back to around $1 each (I disagree), this post was very interesting.
I'd start from the end, apparently the SBD supply increase isn't enough, which is why witnesses have actually began printing more SBD, to reduce its value, see this post by @dragosroua.
The real issue with SBD mooning is that it only has downward pressure - it has no value to external users except as another cryptocurrency. Steemit has more value because of its large marketshare, and also that some people may want to actually buy it in order to gain Steem Power.
There is one part of your conclusion that isn't true, since many cryptocurrencies' price is arbitrarily high, it's quite possible for both Steem and SBD to be arbitrarily high. The question is how you define "high" for each. Some would say any such value for SBD over $1 is "high". Sure at some point it's better to just choose 100% and keep powering down, but at that point some of it is semantic.
And both could be "high", equivalently high, so to speak.
I've responded to your referenced post, I've been meaning to ask for clarification. Feel free to follow the discussion there, but the short of it is that it is not accurate: the witnesses have not actually increased price feed bias relative to market. (Awaiting confirmation but I've gotten verbal confirmation from others)
To address your last point, yes it is possible, but unlikely. The main point I want to make here is that the SBD supply will simply be flooded over time as the printing rate increases (due to Steem price). The demand simply can't keep up at high steem prices. I of course don't have definitive proof but the proportional increase in the print rate is not something to laugh at. I'll need to draw some graphs to really hammer this point in.
Thank you for your input!
Another consideration.
There are a lot more pieces of Steem on the market than there are of Steem Dollars. Suppose that you're right and if SBD is considerably higher than its Steem-value, then it'd go down due to increased supply that will outpace demand - but one of the questions is not what will happen eventually, but how long it'd take, and the wildly varying amounts of Steem versus SBD might also play a factor in making this potentially a very long and gradual process.
True, but the main point is that the process is faster the higher the steem price.
I read the discussion. I'm confused too.
Especially when you see our rewards still come in 50/50 split. Does it mean witnesses are the ones who get paid in more SBD than Steem now? I have no idea...
I think this whole thing might be explainable in voice chat or even text chat, but via the messages I too just ended as confused as you are as to what is going on.
I believe I am right about it now, and would be happy to chat with you. I'm on discord with the same name as well as steemit.chat
I meant that a chat between you and dragosroua could clear up that chain.
If you write it up, I'd love to read it. If not, I may have time for a chat later on.
By the by, which Discord channel are you referencing? There's a "default" steemit one?
Oh yes, that probably could have been in a chat. Why didn't I think of that... But there's nothing to write about for that thread. The entire summary of how payouts and price feeds work are in this post at the top already.