Bitcoin isn't tied to anything other than supply and demand as far as I know, once all the coins are mined there will be no more, yet more and more people are using it everyday...
That's right. BTC and most other cryptocurrencies are free floating on the competing tides of supply and demand. The Dollar value of BTC is a reflection of the value which the world places on BTC vs the value the world places on the USD at any given moment. FWIW, the Dollar value of most of your more obscure cryptocurrencies is actually a derivative of both the exchange rate of that particular currency against BTC, and the exchange rate of BTC/USD, since many of them are not directly exchangeable for US Dollars. IOW, to purchase them, you would first have to purchase BTC, and then exchange BTC for the other cryptocoin.
Regarding the original question in this post, I admit I have not looked into the mechanism by which Steem is pegged to USD. Hopefully someone will be able to break that one down barney-style for all of us, because I would really like to know myself. I'll look around though and see what I can find out. If no one has answered it by then, I'll try to contribute something if I can.
Thanks @sdred955 Steem is my first experience with a cryptocurrency.
It's all very interesting for sure.. Hopefully someone can expand more on the Steem "stock split" aspect as well. I heard Dan speak about it on an interview but that is all I know about it...
Bitcoin isn't tied to anything other than supply and demand as far as I know, once all the coins are mined there will be no more, yet more and more people are using it everyday...
That's right. BTC and most other cryptocurrencies are free floating on the competing tides of supply and demand. The Dollar value of BTC is a reflection of the value which the world places on BTC vs the value the world places on the USD at any given moment. FWIW, the Dollar value of most of your more obscure cryptocurrencies is actually a derivative of both the exchange rate of that particular currency against BTC, and the exchange rate of BTC/USD, since many of them are not directly exchangeable for US Dollars. IOW, to purchase them, you would first have to purchase BTC, and then exchange BTC for the other cryptocoin.
Regarding the original question in this post, I admit I have not looked into the mechanism by which Steem is pegged to USD. Hopefully someone will be able to break that one down barney-style for all of us, because I would really like to know myself. I'll look around though and see what I can find out. If no one has answered it by then, I'll try to contribute something if I can.
Thanks @sdred955 Steem is my first experience with a cryptocurrency.
It's all very interesting for sure.. Hopefully someone can expand more on the Steem "stock split" aspect as well. I heard Dan speak about it on an interview but that is all I know about it...