Why I think SBD will not peg back to USD
Good morning everyone, I sit here pondering what is the fate of our weird little cousin SBD. As we all know its meant to be pegged to the USD so that 1 SBD should be ablout the equivalent to US$1 of Steem. But this hasn't been the case for a few weeks now after some moron ran up the price to astronomical highs.
Now the normal part me of says, "ohh it'll come back to $1" The greedy part of me says "Stay up, Go Higher!!!!" but the logical part of me is torn.
Logically, the people that bought up all these SBD did so as an investment, and people want to MAKE money on an investment, so for it to go back to $1 would be very bad for them. SBD isn't like USDT where they mint new coins and manipulate the market to try to keep the value as close to $1 as possible.
Ohh but manipulation...........
Could it be possible that this was all a rouse, Steemit Inc or a few big whales ran up the price of SBD to try and pull money out of Bitcoin and other markets and in turn inflate the price of Steem where the true value lies.
Its not like @ned has come out and posted about what they'll do to correct it, maybe he was complicit.
Either way, I think SBD will stay high for some time yet, probably tracking the price of steem at 1:1. The days of big multipliers in converting Steem to SBD and visa versa are probably over, but maybe not the days of high SBD.
Also, for those that like charts, here is the 1hour chart for SBD. As we can see its fairly oversold, so I think the price should go back up somewhat.
The witnesses are supposed to get rid of the difference using arbitrage, but I don't think they bother.
I had been wondering about this. I remember when it dropped to 80 cents, the witnesses had some mechanism they could use to raise its price. Adversely when it went to 1.20 they had a mechanism they could use to bring it down. Im not sure if the mechanism broke or just got shut off, I am curious because I was interested in pegged assets and how they would maintain.. SBD was maintaining really well, but now I wonder if the peg broke or was taken off
in a free market its really hard to peg without manipulating. The first of these I had seen was Bitbay and they had a rolling peg. This was pretty smart, it didn't hold it to 1 arbitrary figure, instead it only allowed a certain level of fluctuation daily/weekly etc. It was done by controlling the liquidity of the asset, so as the price climbed, they flooded the market with more coin to bring it back down, and if it went too low, they locked up some of the coin to help it climb again.
I am thinking the same. I think it might follow the price of STEEM. It could also take a huge dip though, as people are more likely to want STEEM than SBD. Therefore people might trade some SBD for STEEM in the coming weeks.
Hi, so what better to hold steem or steem dollars (SBD) ?
most certainly hold steem
I liked it better when SBD was around 1 dollar and relatively it made it easier to do steemit transactions. Now a 8 steem contribution to projects equals $48 -$64 instead of $8.
But SBD is a crypto and its value can go up or down depending on the market. Ideally SBD goes down to $1 and Steem hits that $10 mark :)
Interesting theory about people running up the price of SBD to get people to pull their money form other exchanges. Personally, I think some form SMT is going to the dominate crypto currency. I'm just surprise that more people haven't adopted
I actually never understood how it could stay pegged to $1 USD. My understanding was that the circulating supply was the total supply, and so it's a limited commodity (Steem's circulating supply and total supply haven't met yet... and it's due to double at some point). So purely by SBD's rarity, it has to drive the price up right?
Although I could be wrong about every single point here... but that was my understanding.
Everything in Crypto is a pump and dump but at least SBD comes from a place of relative value. You can earn SBD's by creating good content. That makes it a different proposition, in my mind, than other alt coins. My view is that the currencies that do well this year are going to be the ones that do something. So Sia Coin for example, cause everyone uses storage. Likewise once SMT's come out, everyone has a need for a website and to monetise their following, I see it as a practical need, therefore my bet is that SBD's will rise hugely once SMT's come.
The original big pump a few weeks back in SBD was from that Korean exchange listing them. I think SBD's are seen now as pretty stable.
Wonderful perspective on SBD. Loved it. Hope it remains higher in 2018 :-) . Regards Nainaz.
#thealliance
Hi, dummy here! I dont really understand the difference between SBD and steem and why not long ago SBD was buying steem at an amazing rate when it was only a couple of dollars, but now it's worth more, the rate isn't as good.
The only dumb question is the one you never ask.
It basically all comes down to exchange rate. Back a few weeks ago when SBD was up sky high, people were getting nearly 10:1 because the SBD was "valued" 10times higher than the Steem.
But now that Steem has taken a big pump, the price difference is much closer, we are only getting about 1.3:1.
I think that it will continue along the same path of a 1:1 ration for a while.
Okay. So can be pretty much classed as different currencies?